Global entertainment media revenues surge to $2.3 trillion

The global entertainment media (EM) industry surged ahead last year, strongly outpacing overall global economic growth. Following a pandemic-related 2.3% decline in 2020, EM revenue rose a strong 10.4% in 2021, from US$2.12trn to US$2.34trn. With the industry becoming more digital, more mobile and more youth-oriented, virtual reality (VR) and gaming are powerful growth drivers, while digital advertising permeates all of the industry. These are findings from PwC’s Global Entertainment Media Outlook 2022-2026, the 23rd annual analysis and forecast of EM spending by consumers and advertisers across 52 countries and territories.To get more china entertainment news, you can visit shine news official website.

Findings in this year’s Outlook include:

Global video games and esports revenue totaled US$215.6bn in 2021 and is forecast to grow at a 8.5% CAGR to US$323.5bn in 2026. Asia Pacific generated the lion’s share of revenues in 2021 with US$109.4bn, almost double North America, the second highest region. Gaming is now the third-largest data-consuming EM content category, behind video and communications.
VR continues to be the fastest-growing EM segment, albeit from a relatively small base. Global VR spend rose by 36% y-o-y in 2021 to US$2.6bn, following on the hot 39% growth in 2020. Growth between 2021 and 2026 is expected at 24% CAGR, bringing the segment to US$7.6bn. Gaming content is the primary contributor to VR revenue, taking in US$1.9bn in 2021. This should increase to US$6.5bn in 2026, 85% of total VR revenue.
Advertising’s spread throughout the digital world has made it a dominant industry category. After a decline of nearly 7% in 2020, advertising grew an impressive 22.6% in 2021 to US$747.2bn. Driven almost entirely by digital, advertising is set to grow at a 6.6% CAGR through 2026. Internet advertising revenue is seen growing even faster, expanding at 9.1% CAGR. In 2026, advertising is projected to be a $1tn market and the largest EM revenue stream, having surpassed consumer spending and internet access.
After growing by 35.4% in 2020, Over-the-top (OTT) video surged another 22.8% in 2021, pushing revenues to US$79.1bn. The pace of OTT revenue growth will moderate somewhat; it is expected to grow at a 7.6% CAGR through 2026, pushing revenues to US$114.1bn.
Traditional TV, beset by competition from OTT streaming services, still generates considerable revenues, but its inexorable decline will continue, with global revenues projected to shrink at a -0.8% CAGR from US$231bn in 2021 to US$222.1bn in 2026.
Global cinema revenue is bouncing back, reversing its pandemic-driven losses, and is expected to reach a new high of US$46.4bn in 2023. Box office revenue is projected to reach US$49.4bn in 2026 from US$20.8bn in 2021, an 18.9% CAGR. China surpassed the US to become the world’s biggest cinema market in 2020, and is expected to retain this leadership through 2026.
Live music revenue is projected to exceed pre-pandemic levels in 2024. Digital music- streaming subscriptions are driving growth in the recorded music sector where revenues are forecast to rise from US$36.1bn in 2021 to US$45.8bn in 2026
The growth of content is fueling massive data consumption – 2.6mn petabytes (PB) of data were consumed in 2021, and it is expected to rise at a 26% CAGR to reach 8.1mn PB by 2026. Gaming will be the fastest-growing data consumer over the forecast period, with a 29.6% CAGR expected. Mobile handsets will be the fastest-growing device category between 2021 and 2026, increasing at a 28.8% CAGR and expected to push mobile data consumption up from 1.1mn PB to 3.8mn PB.