Global Media Revenue Projected to Surpass $1.25 Trillion by 2028

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  Published in Media and Entertainment on Sunday, December 28th 2025 at 19:02 GMT by Deadline.com

Global Media Set for Continued Growth, But Streaming Faces Headwinds: A Look at PwC’s New Report

The global media and entertainment industry is poised for continued growth through 2028, but the landscape is shifting dramatically, with streaming services facing increasing pressure while other sectors like gaming and live experiences thrive. These are the core findings of a new report from PricewaterhouseCoopers (PwC), released this week and detailed by Deadline. While overall optimism remains high, the report highlights evolving consumer behavior, economic uncertainties, and technological advancements that will shape the industry’s future.

Overall Growth & Key Drivers:

PwC projects total global media revenue to reach $1.25 trillion in 2028 – a significant increase from the estimated $936 billion in 2023. This growth is driven by several factors, most notably the continued expansion of online gaming and burgeoning opportunities within live events. The report anticipates that video game spending will surpass $300 billion globally by 2028, fueled by mobile gaming’s accessibility and the ongoing development of immersive experiences like cloud gaming (as discussed in a previous PwC report). Live entertainment, including concerts, festivals, and sporting events, is also experiencing a resurgence, benefiting from pent-up demand following pandemic restrictions. The desire for shared, tangible experiences is proving to be a powerful force against purely digital consumption.

Streaming's Plateau & Challenges:

While streaming remains a crucial component of the media landscape, PwC’s report signals a potential plateau in its growth trajectory. While still expected to contribute significantly to overall revenue, the rate of subscriber acquisition has slowed considerably from the explosive growth seen during the pandemic years. The report forecasts streaming revenues will grow at a slower pace than initially anticipated, reaching $136 billion by 2028 – less aggressive than previous projections.

Several factors are contributing to this slowdown. The “streaming wars” have led to subscription fatigue among consumers who are juggling multiple services and increasingly sensitive to price increases. The rise of "subscription stacking" (subscribing to several services for a short period, then canceling) further complicates revenue models. Furthermore, the shift towards hybrid distribution strategies – where studios release films in theaters and on streaming platforms simultaneously or shortly after – is impacting subscription value propositions.

The report notes that many streamers are now focusing on profitability over subscriber count, implementing measures like price hikes, ad-supported tiers (as seen with Netflix’s move to introduce advertising), and content cost optimization. This shift reflects a broader industry realization that the "growth at all costs" model is unsustainable. The need for sustainable business models is further emphasized by the recent struggles of companies like Paramount Global, whose stock has been under pressure due to concerns about its streaming performance (as highlighted in Deadline’s coverage).

Advertising's Resilience & Transformation:

Despite broader economic anxieties, advertising remains a crucial revenue stream for media companies. PwC predicts global ad spending will continue to grow, albeit at a more moderate pace than previously projected. The report emphasizes the ongoing shift towards digital advertising, particularly through platforms like TikTok and YouTube (owned by Google). While linear television advertising is declining, it's not disappearing entirely; rather, it’s being transformed by data-driven targeting and programmatic buying.

The rise of connected TV (CTV) is also a key area of focus for advertisers. CTV offers the potential to combine the reach of traditional television with the precision of digital advertising. However, challenges remain around measurement and attribution within the CTV ecosystem, which are areas PwC highlights as requiring further development. The report acknowledges that changes in privacy regulations and the phasing out of third-party cookies will continue to shape how advertisers target audiences and measure campaign effectiveness.

Other Notable Trends:

• AI’s Growing Impact: The report recognizes the transformative potential of artificial intelligence across various media functions, from content creation and personalization to advertising optimization and piracy detection. While AI offers significant opportunities for efficiency and innovation, PwC also acknowledges the ethical considerations and potential disruption it poses to existing workflows.
• VR/AR Remains a Long-Term Play: While virtual reality (VR) and augmented reality (AR) haven’t yet achieved mainstream adoption, PwC maintains that they represent long-term growth opportunities within the media landscape, particularly in gaming, entertainment, and education. The report suggests that advancements in hardware and software will be crucial for unlocking their full potential.
• The Importance of Data: Data analytics remains paramount for understanding consumer behavior, optimizing content strategies, and maximizing advertising revenue. Media companies are increasingly reliant on data to personalize experiences, target audiences effectively, and measure the impact of their investments.

Conclusion: Navigating a Complex Future

PwC’s report paints a picture of a dynamic and evolving media landscape. While overall growth is expected, streaming services face significant headwinds as they grapple with subscription fatigue and shifting consumer preferences. The resilience of advertising, coupled with the continued expansion of gaming and live entertainment, offers opportunities for diversification and innovation. Ultimately, success in this environment will require media companies to adapt quickly, embrace new technologies like AI, prioritize profitability, and cultivate deeper relationships with consumers. The report serves as a valuable roadmap for understanding the challenges and opportunities that lie ahead for the global media and entertainment industry.