AI, live experiences to drive global media industry to $4.2trn by 2030 — PwC
By Eyo Nsima
Artificial intelligence, digital innovation and growing demand for live and immersive experiences are expected to drive the global entertainment and media industry to $4.2 trillion by 2030, PricewaterhouseCoopers (PwC) has projected.
According to PwC’s Global Entertainment & Media Outlook 2026–30, global entertainment and media revenue will grow at a compound annual growth rate (CAGR) of 3.4 per cent over the next five years, creating about $600 billion in additional revenue in 2030.
The report said the industry grew 5.3 per cent in 2025, with advertising, connectivity and consumer spending generating total revenue of $3.5 trillion. Growth is expected to continue in 2026, with revenue projected to rise by another 4.6 per cent.
PwC said digital ecosystems would overwhelmingly drive the expansion, with increasingly powerful technologies, particularly AI, changing how content is produced, distributed and monetised.
“AI won’t change what people expect and need from entertainment and media,” PwC said, stressing that the industry would remain fundamentally dependent on “human craft and human experiences.”
The report identified a growing appetite for physical and immersive experiences despite the dominance of digital platforms.
It said consumers were increasingly attracted to experiences that are “immersive, emotional, contextual, and personal,” creating opportunities in live music, sports, cinemas, trade shows and other real-world entertainment.
PwC cited the growing success of immersive venues as evidence of the trend. Sphere in Las Vegas, for instance, generated $781 million in revenue in 2025 from programming that included immersive screenings and concerts.
The report also forecast strong growth in advertising, which surpassed $1 trillion globally in 2025 and is expected to reach $1.4 trillion by 2030.
Internet advertising alone is projected to increase at a 7.2 per cent CAGR to almost $1.1 trillion by 2030, with AI helping companies improve targeting, personalise campaigns and measure commercial outcomes.
PwC said streaming would also continue expanding, although at a slower pace as consumers experience “subscription fatigue”.
Global over-the-top (OTT) revenue jumped 13.9 per cent in 2025 to $226.6 billion, and is forecast to reach $304 billion by 2030, representing a 6.1 per cent CAGR.
As consumers resist paying for multiple subscriptions, advertising is expected to become increasingly important to streaming platforms.
PwC projected OTT advertising revenue to grow at a 9.4 per cent CAGR, increasing its share of total OTT revenue from 19.4 per cent currently to 22.6 per cent by 2030.
The report also highlighted the growing importance of AI to the industry’s future, particularly in content creation, recommendations, discovery, personalisation and advertising.
“AI is already having transformational impacts along the E&M content value chain,” PwC said, adding that its role was evolving from simply improving efficiency to becoming a driver of business value.
The firm said companies with large user bases and strong direct customer relationships would be better positioned to exploit AI because proprietary audience data would become increasingly valuable.
PwC also expects the media landscape to become simultaneously more centralised and decentralised.
Large platforms are likely to consolidate advertising revenues and pursue mergers and acquisitions, while creators, influencers and independent producers will continue building audiences through platforms such as YouTube, Instagram, Substack and TikTok.
By 2030, audiences are expected to increasingly discover content through feeds, creators and recommendation systems rather than traditional schedules and editorial structures.
PwC said the changing environment would require media companies, advertisers and content creators to rethink how they engage audiences.
“Technology, and especially AI, will enable more effective and efficient means of connecting people to one another, and connecting marketers to consumers,” it said.
The report concluded that although AI would become one of the industry’s most important tools, competitive advantage would still depend heavily on human creativity, expertise, judgement and the ability to deliver compelling experiences.
