AI and digital advertising to push media industry past $4 trillion by 2030: PwC

The global entertainment and media (E&M) industry is on track to surpass $4.2 trillion in annual revenues by 2030, driven largely by AI-powered advertising, digital platforms, streaming services and growing demand for live experiences, according to a new forecast from PwC.

The consulting firm's Global Entertainment & Media Outlook 2026-2030 projects industry revenues will expand at a compound annual growth rate of 3.4%, adding roughly $600 billion in new annual revenue over the next five years.

Advertising is expected to be the biggest growth driver, overtaking consumer spending as the industry's fastest-growing segment. PwC forecasts global advertising revenues will climb to $1.4 trillion by 2030, up from more than $1 trillion in 2025.

The shift is being fueled by artificial intelligence, which is enabling real-time personalization and more targeted advertising campaigns.

"Advertising continues to remain a powerhouse driving the global entertainment and media industry's revenues," said Bart Spiegel. "AI-powered hyper-personalisation is transforming engagement with end users."

Digital advertising is expected to account for much of that growth. Internet advertising revenues, which include social media, video and other digital formats, reached $755.6 billion in 2025 and are projected to grow at a 7.2% annual rate through 2030.

While advertising accelerates, consumer spending growth is expected to remain relatively modest at 2.5% annually. Connectivity services, including internet access, will remain the industry's largest revenue category but are forecast to grow more slowly, rising from $1.3 trillion in 2025 to $1.5 trillion by 2030.

Streaming platforms continue to expand, though growth is beginning to moderate in mature markets as subscription fatigue emerges among consumers. PwC expects streaming, or over-the-top (OTT), revenues to grow at a 6.1% CAGR through 2030.

To sustain growth, streaming providers are increasingly turning to bundled offerings, partnerships and advertising-supported tiers. Advertising currently accounts for less than one-fifth of OTT revenues but is projected to represent nearly 23% of segment revenue by 2030.

Traditional television, meanwhile, continues to lose ground. Global TV revenues declined 2.7% in 2025 and are expected to fall further over the next five years as audiences migrate to digital and mobile platforms.

Cinema revenues are also expected to continue recovering from the pandemic-era slump. Global box office receipts are projected to reach $39.5 billion by 2030, with Asia-Pacific leading growth. The region is forecast to expand from $13.8 billion in 2025 to nearly $17 billion by the end of the decade, outpacing North America and Europe.

Beyond digital services, consumers continue to spend heavily on live and immersive experiences.

PwC forecasts combined revenues from cinema, live music, trade shows, out-of-home entertainment and online betting will reach $294 billion by 2030, growing at a 5.2% annual rate.

The music sector is expected to expand from $125.5 billion in 2025 to $145.1 billion in 2030, with streaming remaining the largest revenue source. Live music revenues are projected to exceed $41 billion by the end of the decade.

Trade shows and business events are also emerging as a significant growth market, generating nearly $45 billion in annual revenues by 2030 as companies invest in face-to-face engagement and experience-led events.

Among the fastest-growing categories is online betting and gambling. In the markets tracked by PwC, regulated online gambling revenues more than doubled between 2021 and 2025 and are forecast to reach nearly $120 billion by 2030.

The report suggests that while AI is reshaping content creation, distribution and advertising, consumers are simultaneously placing greater value on physical, shared experiences. For media companies, the challenge will be balancing digital innovation with new ways to monetize engagement both online and in person.

As competition intensifies across streaming, advertising and content platforms, PwC says companies will increasingly need to combine AI-driven personalization, bundled services and premium live experiences to sustain growth in the years ahead.