Market Insight-Global Media and Entertainment Market Overview 2025

Global Media and Entertainment Market Was Valued at USD 2.96 Trillion in 2024 and is Expected to Reach USD 4.11 Trillion by the End of 2033, Growing at a CAGR of 3.67% Between 2025 and 2033.- Bossonresearch.com

In 2024, the entertainment and media (E&M) industry recovered its balance. In the face of economic headwinds and technological disruptions, total global revenue rose 4.78% to US$2.96 trillion in 2024-easily outpacing overall economic growth. Over the next years, the E&M complex will grow at a more muted 3.67% CAGR; in 2033, total revenues will top US$ 4.11 trillion.

Generative AI tools are becoming increasingly integrated into content creation, enabling faster, more scalable production workflows across film, animation, and advertising. Streaming continues to displace linear TV, with platform saturation leading to the rise of ad-supported subscription models and strategic mergers. Digital advertising-particularly through short-form video and social commerce-has become a dominant growth driver, accounting for over half of the industry's projected expansion. Meanwhile, gaming remains one of the fastest-growing segments, fueled by mobile-first audiences and expanded monetization via in-game purchases and esports. Business model innovation, globalization of services, and ongoing investments in immersive technologies such as AR/VR are reshaping how media is produced, consumed, and monetized globally.

In aggregate, the industry's ship seems to be sailing through calm seas on an even keel. But the surface is continually roiled by cresting waves and deep troughs, with dangerous shoals and reefs lurking everywhere. Disruption, presenting opportunities and risks, continues to break over the sector. Linear value chains are disaggregating as we move into a world dominated by digital ecosystems. The content boom driven by rapid streaming growth has come to a halt.

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Driving Factors

Generative AI in Content Creation

GenAI-driven text generation tools can translate concepts into stories and generate credible human dialogue, turn text into visuals and storyboards, and create animated 3D models from 2D videos or static images. GenAI can also add value in post-production by making editing quicker and easier. GenAI offers users a powerful flywheel for experimenting, iterating, and scaling new solutions and processes. In advertising, GenAI can be used to quickly develop creative approaches for different contexts-and then to iterate and refine rapidly in response to consumer attention and uptake.

Advertising Leads Growth

The emergence of a growing number of content creators and short-video platforms is expected to accelerate the growth of online advertising and increase its share of market revenue. According to PwC Global, advertising will account for 55% of the total growth in the E&M industry over the next five years, and the role has evolved from a traditional supporting function to a core revenue pillar. Companies that previously relied heavily on subscription services, such as streaming platforms, are now exploring or expanding ad-supported tiers to capture a share of this booming revenue source. This strategic shift not only diversifies their revenue sources, but also makes content accessible to a wider range of consumers through a freemium model, thereby enhancing user acquisition and engagement.

In addition, the rapid growth of non-video display advertising, especially in mature e-commerce ecosystems such as the United States (expected to grow at a compound annual growth rate of 21.6%), highlights the convergence of retail media and entertainment content. These developments show that the traditional boundaries between content, commerce, and advertising are blurring. As a result, media and entertainment companies are under increasing pressure to optimize advertising technology, leverage first-party data, and integrate shoppable content and personalized advertising experiences. This shift in dynamics has enhanced monetization opportunities, but has also increased competition for ad budgets, forcing companies to innovate in content delivery and user experience to remain relevant and grow in the digital advertising era.

Mergers and Acquisitions

According to Bain, by 2024, more than half of media M&A deals will involve a target or acquirer outside the traditional media industry. This trend reflects a strategic shift by media companies to compete with tech giants by expanding their capabilities and influence.

Over the past 15 years, tech has also extended its tentacles into the media space-for example, Netflix's massive digital distributor launched a studio to supplement its content library, while Amazon's retail hub has also expanded its video content. The entry of big tech companies into the media and gaming sectors has caused traditional media companies to respond at very different stages. First, they used M&A to consolidate their core businesses and expand their scale. This is one way media companies compete with their tech peers. Now, they have added another method-expanding across industries using scope deals.

These companies are essentially integrating themselves to compete with tech media platforms; they are also acquiring more evergreen IP that can be used across models. By owning these cross-industry assets and IP, they create fan communities and multi-modal content-their revenue sources include not only subscriptions, streaming ads or theater tickets, but also other avenues such as merchandise and special events.

For example, Disney, a media company with a rich history of expanding through both scale and scope deals, has also shifted more of its focus from scale to scope in recent years. While not without its share of setbacks, Disney has moved from focusing primarily on scale deals, such as its acquisitions of Pixar in 2006 and 21st Century Fox in 2019, to an increasing emphasis on scope deals. In 2024, the iconic company incorporated deals outside its core business into its M&A strategy by investing in Epic Games, the developer of the successful immersive game Fortnite.

Another recent cross-industry deal was Sony Pictures Entertainment's acquisition of Alamo Drafthouse, a theater chain known for offering dinner and drinks during movie screenings. The Alamo Drafthouse will be managed by a new division called Sony Pictures Experiences, which will expand Sony's presence in new areas of the media value chain.

Globalization of Service-Based Entertainment to Augment the Market

The old and new coexist in the media and entertainment (M&E) industry while it undergoes change. Interactivity, digitalization, a variety of platforms, gadgets, and the globalization of the services-based environment have all changed it during the last ten years. In recent years, the sector has seen a transition in terms of technology and applications and is quite diverse. The worldwide entertainment and media industries have been forced by this shift to provide cutting-edge content and efficient distribution strategies in order to compete in the fiercely competitive market. A few of the industries that make up the M&E sector are movies/cinema, television, music, publishing, radio, internet, advertising, and gaming.

Gaming's Accelerating Growth Driven by continued innovation, expanding audiences, and evolving monetization models, the gaming industry is quickly becoming a cornerstone of the global media and entertainment industry. With global video game revenues expected to reach $227.6 billion in 2023 and surpass $300 billion by 2033, the industry's impressive growth trajectory underscores its resilience and cultural relevance. Gaming is now one of the fastest-growing segments in the entertainment and entertainment sector, outpacing traditional media industries. Social and casual games are particularly important in driving this momentum, and are expected to account for more than three-quarters of the global video game and esports market after 2028. These game genres benefit from low barriers to entry, convenient mobile devices, and built-in social features, attracting the attention of different groups around the world. This trend also reflects a shift in consumer behavior, with gaming no longer limited to niche enthusiasts but integrated into mainstream digital lifestyles. As a result, companies are increasing their investments in immersive technologies, cross-platform experiences, and new monetization strategies such as in-game purchases, subscriptions, and advertising. These developments are reshaping gaming as a dominant force in the broader entertainment ecosystem, influencing trends in content creation, distribution, and audience engagement.

Business Model Innovation

The proliferation of streaming platforms has unleashed a wave of business model innovation as companies grapple with market saturation and stagnant average revenue per user (ARPU). While global OTT streaming is expected to grow steadily at a CAGR of 6.58%, ARPU growth is relatively flat, highlighting the growing pressure on streaming platforms to diversify revenue streams beyond standard subscriptions. This has led to widespread adoption of hybrid packages, where viewers accept advertising in exchange for lower subscription fees. These ad-funded models are growing in popularity, even among major global players such as Netflix, Disney+ and Amazon Prime Video, and are being rapidly adopted by some smaller regional platforms.

To further boost profitability, platforms are implementing complementary strategies, such as cracking down on password sharing, and investing in high-risk live content such as sports events, to simultaneously drive subscriptions and advertising revenue. This shift marks a major change in the OTT landscape, moving away from a pure subscription model to a more flexible and diversified operating model. This reflects not only the need to retain and grow the user base in a saturated market, but also a realignment of value delivery - striking a balance between affordability, content accessibility and profitability. These changes are redefining consumer expectations and the competitive landscape, heralding a new phase of strategic innovation across the media and entertainment ecosystem.

Streaming Entertainment is Replacing Linear TV

Before the 1960s, television replaced radio as the primary entertainment source. Now, streaming is leading a similarly large transformation, accelerated by the flexibility and global reach of internet platforms. Traditional linear TV ties content to fixed schedules and complex controls, whereas streaming allows personalized, on-demand access across devices-an experience modern viewers overwhelmingly prefer. Globally, major services like Disney+, HBO Max, Paramount+, and BBC iPlayer dominate how people consume content, especially through smartphones and smart TVs. With internet speeds becoming faster and more reliable, and the widespread adoption of connected devices like smart TVs and smartphones, more users than ever can access high-quality streaming experiences. This infrastructure boom forms the backbone of the streaming revolution.

Consumers are no longer tied to fixed schedules or specific devices. Streaming platforms offer the freedom to watch content on-demand, anytime and anywhere, across various screens. Additionally, users can personalize their viewing experiences based on preferences, enhancing overall satisfaction.

Key Development Trends

Generative AI in Content Creation

GenAI-driven text generation tools can translate concepts into stories and generate credible human dialogue, turn text into visuals and storyboards, and create animated 3D models from 2D videos or static images. GenAI can also add value in post-production by making editing quicker and easier. GenAI offers users a powerful flywheel for experimenting, iterating, and scaling new solutions and processes. In advertising, GenAI can be used to quickly develop creative approaches for different contexts-and then to iterate and refine rapidly in response to consumer attention and uptake.

Advertising Leads Growth

The emergence of a growing number of content creators and short-video platforms is expected to accelerate the growth of online advertising and increase its share of market revenue. According to PwC Global, advertising will account for 55% of the total growth in the E&M industry over the next five years, and the role has evolved from a traditional supporting function to a core revenue pillar. Companies that previously relied heavily on subscription services, such as streaming platforms, are now exploring or expanding ad-supported tiers to capture a share of this booming revenue source. This strategic shift not only diversifies their revenue sources, but also makes content accessible to a wider range of consumers through a freemium model, thereby enhancing user acquisition and engagement.

In addition, the rapid growth of non-video display advertising, especially in mature e-commerce ecosystems such as the United States (expected to grow at a compound annual growth rate of 21.6%), highlights the convergence of retail media and entertainment content. These developments show that the traditional boundaries between content, commerce, and advertising are blurring. As a result, media and entertainment companies are under increasing pressure to optimize advertising technology, leverage first-party data, and integrate shoppable content and personalized advertising experiences. This shift in dynamics has enhanced monetization opportunities, but has also increased competition for ad budgets, forcing companies to innovate in content delivery and user experience to remain relevant and grow in the digital advertising era.

Mergers and Acquisitions

According to Bain, by 2024, more than half of media M&A deals will involve a target or acquirer outside the traditional media industry. This trend reflects a strategic shift by media companies to compete with tech giants by expanding their capabilities and influence.

Over the past 15 years, tech has also extended its tentacles into the media space-for example, Netflix's massive digital distributor launched a studio to supplement its content library, while Amazon's retail hub has also expanded its video content. The entry of big tech companies into the media and gaming sectors has caused traditional media companies to respond at very different stages. First, they used M&A to consolidate their core businesses and expand their scale. This is one way media companies compete with their tech peers. Now, they have added another method-expanding across industries using scope deals.

These companies are essentially integrating themselves to compete with tech media platforms; they are also acquiring more evergreen IP that can be used across models. By owning these cross-industry assets and IP, they create fan communities and multi-modal content-their revenue sources include not only subscriptions, streaming ads or theater tickets, but also other avenues such as merchandise and special events.

For example, Disney, a media company with a rich history of expanding through both scale and scope deals, has also shifted more of its focus from scale to scope in recent years. While not without its share of setbacks, Disney has moved from focusing primarily on scale deals, such as its acquisitions of Pixar in 2006 and 21st Century Fox in 2019, to an increasing emphasis on scope deals. In 2024, the iconic company incorporated deals outside its core business into its M&A strategy by investing in Epic Games, the developer of the successful immersive game Fortnite.

Another recent cross-industry deal was Sony Pictures Entertainment's acquisition of Alamo Drafthouse, a theater chain known for offering dinner and drinks during movie screenings. The Alamo Drafthouse will be managed by a new division called Sony Pictures Experiences, which will expand Sony's presence in new areas of the media value chain.

Globalization of Service-Based Entertainment to Augment the Market

The old and new coexist in the media and entertainment (M&E) industry while it undergoes change. Interactivity, digitalization, a variety of platforms, gadgets, and the globalization of the services-based environment have all changed it during the last ten years. In recent years, the sector has seen a transition in terms of technology and applications and is quite diverse. The worldwide entertainment and media industries have been forced by this shift to provide cutting-edge content and efficient distribution strategies in order to compete in the fiercely competitive market. A few of the industries that make up the M&E sector are movies/cinema, television, music, publishing, radio, internet, advertising, and gaming.

Gaming's Accelerating Growth

Driven by continued innovation, expanding audiences, and evolving monetization models, the gaming industry is quickly becoming a cornerstone of the global media and entertainment industry. With global video game revenues expected to reach $227.6 billion in 2023 and surpass $300 billion by 2033, the industry's impressive growth trajectory underscores its resilience and cultural relevance. Gaming is now one of the fastest-growing segments in the entertainment and entertainment sector, outpacing traditional media industries. Social and casual games are particularly important in driving this momentum, and are expected to account for more than three-quarters of the global video game and esports market after 2028. These game genres benefit from low barriers to entry, convenient mobile devices, and built-in social features, attracting the attention of different groups around the world. This trend also reflects a shift in consumer behavior, with gaming no longer limited to niche enthusiasts but integrated into mainstream digital lifestyles. As a result, companies are increasing their investments in immersive technologies, cross-platform experiences, and new monetization strategies such as in-game purchases, subscriptions, and advertising. These developments are reshaping gaming as a dominant force in the broader entertainment ecosystem, influencing trends in content creation, distribution, and audience engagement.

Business Model Innovation

The proliferation of streaming platforms has unleashed a wave of business model innovation as companies grapple with market saturation and stagnant average revenue per user (ARPU). While global OTT streaming is expected to grow steadily at a CAGR of 6.58%, ARPU growth is relatively flat, highlighting the growing pressure on streaming platforms to diversify revenue streams beyond standard subscriptions. This has led to widespread adoption of hybrid packages, where viewers accept advertising in exchange for lower subscription fees. These ad-funded models are growing in popularity, even among major global players such as Netflix, Disney+ and Amazon Prime Video, and are being rapidly adopted by some smaller regional platforms.

To further boost profitability, platforms are implementing complementary strategies, such as cracking down on password sharing, and investing in high-risk live content such as sports events, to simultaneously drive subscriptions and advertising revenue. This shift marks a major change in the OTT landscape, moving away from a pure subscription model to a more flexible and diversified operating model. This reflects not only the need to retain and grow the user base in a saturated market, but also a realignment of value delivery - striking a balance between affordability, content accessibility and profitability. These changes are redefining consumer expectations and the competitive landscape, heralding a new phase of strategic innovation across the media and entertainment ecosystem.

Streaming Entertainment is Replacing Linear TV

Before the 1960s, television replaced radio as the primary entertainment source. Now, streaming is leading a similarly large transformation, accelerated by the flexibility and global reach of internet platforms. Traditional linear TV ties content to fixed schedules and complex controls, whereas streaming allows personalized, on-demand access across devices-an experience modern viewers overwhelmingly prefer. Globally, major services like Disney+, HBO Max, Paramount+, and BBC iPlayer dominate how people consume content, especially through smartphones and smart TVs. With internet speeds becoming faster and more reliable, and the widespread adoption of connected devices like smart TVs and smartphones, more users than ever can access high-quality streaming experiences. This infrastructure boom forms the backbone of the streaming revolution.

Consumers are no longer tied to fixed schedules or specific devices. Streaming platforms offer the freedom to watch content on-demand, anytime and anywhere, across various screens. Additionally, users can personalize their viewing experiences based on preferences, enhancing overall satisfaction.



Global Media and Entertainment Market: Competitive Landscape

According to our calculations, in 2024, the global Media & Entertainment market's concentration indicators CR5 and HHI have reached 20.86% and 0.92%, respectively. This indicates a moderately concentrated market, with several dominant global players driving content production, distribution, and platform innovation, while still leaving room for regional and digital-native firms to grow and compete. The continued expansion of streaming, cross-border IP licensing, and convergence between media, tech, and telecom sectors are fueling dynamic competition across formats and geographies. Currently, the key players in the global M&E market include Meta Platforms, Inc., ByteDance Ltd., Comcast, Tencent Holdings Ltd., The Walt Disney Company, Netflix, Warner Bros. Discovery, Inc., Paramount Global, Sony, Alphabet Inc., Amazon.com, Inc., Live Nation, Charter Communications, Spotify Technology S.A., Fox, Universal Music Group, NetEase, Bandai Namco, Nintendo, Electronic Arts, Thomson Reuters, BBC, Warner Music Group, Take 2 Interactive, Apple, AT&T, Bilibili, Liberty Media Corporation, Roblox, and Nexon.

Key players in the Media and Entertainment Market include:

Meta Platforms, Inc.

ByteDance Ltd.

Comcast

Tencent Holdings Ltd.

The Walt Disney Company

Netflix

Warner Bros. Discovery, Inc.

Paramount Global

Sony

Alphabet Inc.

Amazon.com, Inc.

Live Nation

Charter Communications

Spotify Technology S.A.

Fox

Universal Music Group

NetEase

Bandai Namco

Nintendo

Electronic Arts

Thomson Reuters

BBC

Warner Music Group

Take 2 Interactive

Apple

AT&T

Bilibili

Liberty Media Corporation

Roblox

Nexon

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