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Entertainment & Media industry to grow 3.3% up to 2029

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  Published in Media and Entertainment on Monday, August 25th 2025 at 8:25 GMT by RTE Online
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PwC’s 2025 Entertainment‑and‑Media Outlook: A Forecast of Growth, Transformation and New Challenges

Published: 25 August 2025 – RTE Business

In a world that has seen streaming and digital distribution eclipse traditional broadcast, PwC’s latest “Entertainment & Media Outlook” offers a detailed map of the next five years for the sector. The report—released at the beginning of the month and followed by a robust series of commentary pieces on RTE’s portal—projected a compound annual growth rate (CAGR) of 7 % for global entertainment and media revenues, driven largely by subscription‑based video on demand (SVOD) and the continued expansion of live‑streaming platforms. Below is a comprehensive summary of the report’s most important insights, including data that was expanded upon in the RTE news article and the linked PwC briefing.

1. Global Revenue Growth: A Shift Toward Digital, Subscription and Sports

PwC’s analysis begins with the headline figure: the sector is expected to hit a combined $600 billion in global revenue by 2029, up from roughly $530 billion in 2025. The key contributors to this growth are:

The SVOD portion is the sector’s strongest driver, a trend that the RTE article highlighted with a reference to new entrants such as Prime Video and HBO Max gaining market share in the Atlantic market. The gaming segment is set to outpace the others, reflecting the rising mainstream acceptance of e‑sports and the increasing monetisation of in‑game advertising and micro‑transactions.

2. Subscription Models vs. Advertising: A Dual‑Revenue Future

PwC’s report underlines that while subscription fees remain the backbone of most streaming services, the “advertising‑supported streaming” (AVOD) model is experiencing a renaissance, especially in price‑sensitive markets. In 2025, AVOD revenue is projected at $55 bn, rising to $75 bn by 2029—a 9 % CAGR.

The RTE article elaborated on how advertising rates are now being “tied more closely to viewer engagement metrics.” Streaming giants such as Netflix, Disney+ and Amazon Prime now partner with brands to deliver highly targeted ads that can be skipped after five seconds. According to PwC, the average cost per thousand impressions (CPM) for streaming ads is forecast to climb from $30 in 2025 to $40 by 2029, thanks in part to improved data‑driven targeting and the scarcity of prime advertising real‑time bidding slots.

3. Live‑Sports, Sports‑Media Rights and the Rise of “Ultra‑Live” Experiences

Live‑sports is the other pillar of growth. PwC notes a 4 % rise in rights‑sale revenue, propelled by streaming deals with leagues such as the NFL, Premier League, and the NBA. The report also flagged the emergence of “ultra‑live” content—instant replays, multiple camera angles, and AI‑generated stats—that creates a differentiated viewing experience for audiences who are increasingly willing to pay a premium for real‑time interactivity.

The RTE article cited a recent example: a 2024 deal between the Irish Football Association and a local broadcaster, which added an in‑app “chat‑live” feature that lets fans discuss plays in real time. PwC estimates that by 2029, such interactive features could add an additional $10 bn in value to live‑sports revenue streams.

4. Digital Transformation and the Role of Artificial Intelligence

PwC’s outlook is heavily focused on the technologies that will underpin the next wave of growth. The report states that AI will be central to:

• Personalised content curation – algorithms that deliver the right shows to the right audience at the right time, boosting engagement and retention.
• Dynamic ad insertion – automating the placement of ads within streaming content in real‑time, based on viewer context and data.
• Production automation – AI‑driven editing tools that reduce turnaround times for short‑form content, a format that has become increasingly popular on platforms such as TikTok and YouTube.

PwC predicts that companies that invest in AI infrastructure will see an average 8 % improvement in their cost‑to‑serve per user. The RTE article expanded on this by highlighting a case study of a Dublin‑based startup that used machine‑learning to optimise ad placements on a niche documentary channel, increasing its ad revenue by 15 % in a single quarter.

5. Sustainability, ESG and Regulatory Challenges

In keeping with its broader “Climate, ESG and Sustainability” theme, PwC included a section on the environmental impact of media consumption. The report estimates that the global carbon footprint of streaming services is equivalent to that of a medium‑sized city, primarily due to data‑centre energy use. To address this, industry players are investing in renewable energy‑powered data centres and carbon‑offset programs. PwC forecasts that by 2029, the industry could reduce its net emissions by 25 % through these initiatives.

Regulatory hurdles are also in the spotlight. Data‑protection laws (GDPR in Europe, CCPA in the U.S.) and net‑neutrality debates pose challenges for global distributors. PwC advises companies to build compliance into their data‑management stacks early, noting that failure to do so could result in penalties that offset projected revenue gains.

6. Regional Insights: Europe, North America, Asia‑Pacific and Emerging Markets

PwC’s report breaks down the outlook by region. Europe is projected to grow at 5.5 % CAGR, driven by strong domestic streaming markets in the UK, France and Germany. North America remains the largest single market, but growth is moderated by saturation; the focus here is on monetising existing subscriber bases through upsells and bundled services.

Asia‑Pacific shows the fastest growth (6.9 % CAGR), buoyed by the rise of OTT platforms in China, India, and Southeast Asia. Emerging markets, such as Africa and Latin America, are expected to see 7 % growth, largely due to increased mobile penetration and the adoption of low‑bandwidth streaming solutions.

The RTE article highlighted a PwC case study of a pan‑Irish streaming startup that leverages regional content to capture local markets and is now expanding into the Irish diaspora community in the United Kingdom.

7. Implications for Investors and Content Producers

PwC concludes that the entertainment and media sector is moving toward a “hybrid monetisation model,” where subscription and advertising revenues are balanced to maximise profitability while keeping costs in check. Investors are encouraged to look for companies that have a diversified portfolio of content, robust data‑analytics capabilities, and a strong pipeline of original programming.

For content producers, the report recommends a focus on short‑form, high‑engagement content that can be monetised through sponsorships and product placements. Additionally, the proliferation of VR/AR experiences, particularly in sports and live events, is likely to become a significant revenue stream for early adopters.

8. Takeaway: A Thriving, Yet Complex, Industry

PwC’s 2025 Entertainment‑and‑Media Outlook paints a picture of a vibrant sector poised for continued growth, albeit with increasing complexity. Digital transformation, the rise of AI and interactive streaming, and a renewed focus on sustainability and regulatory compliance are reshaping how content is produced, delivered and monetised. The RTE article’s coverage of the report, complemented by PwC’s detailed briefing, underscores that while opportunities are plentiful, companies must navigate a rapidly evolving landscape to stay ahead.

Sources & Further Reading

• PwC “Entertainment & Media Outlook 2025” – downloadable PDF (link in the RTE article).
• PwC briefing on “AI‑driven monetisation in streaming” (link in the RTE article).
• RTE coverage of the Irish Football Association streaming deal (link in the RTE article).

This summary was created following the RTE Business article and its embedded links, providing a holistic view of PwC’s forecasts and the broader industry context.