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Global Media Spending Projected to Reach $3.2 Trillion by 2029

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  Published in Media and Entertainment on Friday, January 2nd 2026 at 5:28 GMT by Deadline.com

Streaming Still Reigns, But Advertising’s Comeback Fuels Global Media Growth: A Look at PwC's New Forecast

The global media landscape continues its evolution, driven by a complex interplay of streaming dominance, the resurgence of advertising, and shifting consumer habits. According to a new report released by PricewaterhouseCoopers (PwC), total global entertainment and media spending is poised for significant growth over the next five years, reaching $3.2 trillion by 2029. While streaming remains a central force, a surprising rebound in advertising revenue is proving to be a crucial engine powering this expansion. This isn't just about more content; it’s about how that content is funded and consumed.

The report, "Entertainment & Media Outlook 2024-2029," projects an annual growth rate of 6.1% between 2023 and 2029. This represents a slight upward revision from previous forecasts, reflecting the unexpectedly strong performance of advertising markets globally. The initial forecast had anticipated a slower pace of growth. As James Cockburn, Global Leader for PwC’s Entertainment & Media practice, stated in an interview with Deadline, "Advertising has been stronger than we initially thought."

Streaming's Continued Ascendancy (and Challenges)

Unsurprisingly, streaming remains the star attraction. Subscription video-on-demand (SVOD) is expected to continue its growth trajectory, contributing significantly to overall media spending. PwC predicts SVOD revenue will reach $147 billion in 2029, representing a substantial portion of the total entertainment and media pie. This aligns with broader trends; as noted in previous PwC reports (linked within the Deadline article), consumers are increasingly cutting traditional cable subscriptions in favor of on-demand streaming services. However, the landscape isn’t without its challenges. The report highlights increasing competition among streamers – including established players like Netflix and Disney+ and newcomers vying for market share – leading to pricing pressures and a need for differentiated content offerings.

The rise of free ad-supported streaming television (FAST) is also playing a role. While not generating the same revenue as subscription services, FAST platforms are attracting significant viewership and becoming an increasingly important part of the overall streaming ecosystem. As Deadline points out, this trend underscores the consumer desire for both premium content and easily accessible, free options – forcing streamers to adapt their business models accordingly. The report predicts that advertising revenue from streaming will continue its upward trend, further blurring the lines between subscription and ad-supported viewing.

The Advertising Rebound: A Key Driver of Growth

Perhaps the most noteworthy aspect of the PwC forecast is the strength of the advertising market. After a period of relative stagnation following the pandemic, advertising spending is experiencing a robust recovery. Digital advertising continues to be the dominant force, fueled by factors like increased e-commerce activity and the ongoing shift towards online platforms. The report projects digital ad spending will reach $827 billion in 2029 – a staggering figure demonstrating the continued importance of online channels for brands seeking to connect with consumers.

The rebound is broad-based, encompassing various sectors including retail, consumer packaged goods, and automotive. This isn’t simply about increased marketing budgets; it's also driven by improvements in advertising targeting and measurement capabilities, allowing advertisers to maximize their return on investment. The rise of generative AI is also expected to impact ad creation and optimization, potentially further boosting efficiency and effectiveness (as discussed in a separate PwC report linked within the Deadline article).

Beyond Streaming & Advertising: Other Growth Areas

While streaming and advertising are central, other segments of the entertainment and media industry are also contributing to growth. Gaming remains a powerhouse, with mobile gaming continuing to dominate. The metaverse, while still nascent, is projected to see significant investment and adoption over the next few years, although PwC cautions that its ultimate impact remains uncertain. The report acknowledges challenges in realizing the full potential of virtual reality (VR) and augmented reality (AR), highlighting the need for more compelling use cases and affordable hardware.

Regional Variations & Future Considerations

The growth forecasts aren’t uniform across all regions. Asia-Pacific is expected to be the fastest-growing region, driven by rising disposable incomes and increasing internet penetration. North America remains a significant market, but its growth rate is projected to be more moderate compared to emerging markets. Europe's performance will depend heavily on economic conditions and regulatory developments.

Looking ahead, PwC identifies several key factors that could influence the future of the entertainment and media industry. These include:

• The impact of generative AI: Beyond advertising, AI’s potential to revolutionize content creation, distribution, and personalization is significant.
• Regulatory scrutiny: Governments around the world are increasingly scrutinizing the practices of large tech companies and streaming platforms, which could lead to new regulations impacting business models.
• Economic volatility: Global economic uncertainty remains a persistent threat, potentially dampening consumer spending on entertainment and media.
• Changing consumer behavior: Consumer preferences continue to evolve rapidly, requiring media companies to remain agile and adaptable.

In conclusion, PwC's latest report paints a picture of a dynamic and evolving global media landscape. While streaming continues its reign, the resurgence of advertising is proving to be a crucial catalyst for growth. The coming years will undoubtedly bring both opportunities and challenges as companies navigate these shifting tides and strive to meet the ever-changing demands of consumers. The ability to innovate, adapt, and leverage emerging technologies like AI will be critical for success in this increasingly competitive environment.