The entertainment and media industry in China is poised to make significant strides in the coming years, according to PWC’s latest Global Outlook report. The report predicts that advertising and consumer spending revenues in China will increase by more than 7% to reach $362.5B by 2028. This growth rate is nearly double that of the United States, although the U.S. will maintain a significantly higher figure of $808.4B.
Despite the U.S. holding the top spot as the world’s largest entertainment and media market, accounting for over one-third of global spending in 2023, China is steadily closing the gap. PWC highlights China’s continued strong growth, attributing it to the expansion of the country’s entertainment industry. However, the report notes that tight government regulations in China can present challenges for potential investors.
The fastest-growing markets in the entertainment and media industry between now and 2028 are expected to be Indonesia and India. PWC forecasts rapid growth in these regions, citing their distinctive market dynamics. India, in particular, is projected to become the world’s fastest-growing OTT video-streaming market, driven by a vast and diverse population with a keen interest in sports content, especially cricket. By 2028, India’s industry is expected to be worth nearly $100B, with Indonesia following closely behind.
As the industry transitions into the streaming era, a significant focus is on advertising revenues. PWC predicts that global ad revenues will surpass $1 trillion within the next two years, doubling the figure from 2020 by 2028. This surge in ad revenues has prompted leading streaming platforms like Netflix, Disney, and Prime Video to adapt their business models and explore new revenue streams, such as ads and crackdowns on password sharing.
The global entertainment and media industry is evolving rapidly, with China, India, and Indonesia leading the way in terms of growth and innovation. As new technologies and consumer behaviors continue to shape the industry’s landscape, companies must adapt and diversify their revenue streams to thrive in this dynamic environment.
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