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Entertainment & Media: PwC Report Highlights Resilience and Growth

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  Published in Media and Entertainment on Tuesday, January 13th 2026 at 10:27 GMT by Deadline.com
      Locales: UNITED STATES, UNITED KINGDOM, GERMANY

Tuesday, January 13th, 2026 - A new report released today by PricewaterhouseCoopers (PwC) paints a picture of a robust and resilient global entertainment and media landscape, fueled by digital advertising and underpinned by the continued, albeit evolving, dominance of streaming services. The study, which analyzes trends and projects future growth, confirms that the industry is navigating a complex environment marked by emerging technologies, shifting consumer expectations, and an increased focus on profitability.

The core takeaway is clear: advertising spending remains on a consistent upward trajectory. PwC forecasts a global advertising expenditure of $952.05 billion in 2024, escalating to $1.04 trillion by 2027. This represents a healthy compound annual growth rate (CAGR) of 5.3% - a testament to the enduring power of marketing and brand engagement in a rapidly changing world. This growth isn't being driven by traditional channels, however. The digital advertising sector, encompassing search engine marketing, social media advertising, and increasingly, online video, is the primary engine of this expansion. The report projects digital ad spending will hit $692.9 billion this year, ballooning to $766.4 billion within three years.

Streaming Faces New Realities

While streaming remains a central pillar of the entertainment and media ecosystem, the report indicates the "honeymoon" phase may be ending. While subscription revenue remains strong, the pressure to achieve and demonstrate profitability is intensifying. The early years of streaming were characterized by a focus on subscriber acquisition and content expansion, often at the expense of immediate financial returns. Now, investors and stakeholders are demanding a clear path to profitability, leading to increased scrutiny of content costs, subscriber churn, and the efficiency of marketing campaigns. This pressure is also fueling a renewed interest in bundling - combining multiple streaming services into a single, more attractive subscription package. This strategy aims to provide consumers with enhanced value while simplifying their media consumption and potentially improving retention rates for streaming providers.

As Ava Lee, Global Entertainment & Media Practice leader at PwC, noted, "The global media sector continues to be surprisingly resilient, but the pressures of profitability are very real." The competitive landscape has also intensified, with larger media conglomerates and new players vying for consumer attention and subscription dollars.

AI's Transformative Influence and Shifting Consumer Priorities

The PwC report highlights the increasingly pervasive impact of artificial intelligence (AI) across all facets of the entertainment and media industry. AI's capabilities are being leveraged to streamline content creation, optimize advertising targeting for greater efficiency and relevance, and deliver personalized consumer experiences. Generative AI, in particular, is disrupting traditional content creation workflows, presenting both opportunities and challenges concerning costs and copyright. While potentially reducing some content production expenses, it also raises complex questions about the future of creative roles and intellectual property rights.

Beyond technology, the report emphasizes the crucial role of evolving consumer behaviors. A growing awareness of data privacy concerns is influencing how consumers interact with media and advertising. There's also a demonstrable demand for authentic, relatable content - a shift away from heavily produced and overtly commercialized offerings. Brands and media companies must adapt to these changing preferences to maintain relevance and build lasting relationships with consumers. The rise of creator economies and user-generated content further underscore this shift in power, demanding that media organizations reassess their strategies and engage with audiences in more meaningful ways.

Looking Ahead: A $3.7 Trillion Market

The broader entertainment and media market is projected to reach a staggering $3.4 trillion in revenue globally in 2024, with expectations reaching $3.7 trillion by 2027. This vast market encompasses a wide range of sectors, including music, gaming, publishing, and, of course, advertising. While challenges undoubtedly lie ahead - including economic uncertainties, regulatory scrutiny, and rapidly evolving technologies - the overall outlook remains positive, driven by the insatiable consumer appetite for engaging content and the constant innovation within the media and advertising industries.

Key Figures Recap:

• 2024 Global Ad Spend: $952.05 billion
• 2027 Global Ad Spend: $1.04 trillion
• CAGR (2024-2027): 5.3%
• 2024 Global Entertainment & Media Revenue: $3.4 trillion
• 2027 Global Entertainment & Media Revenue: $3.7 trillion