PwC forecasts steady growth in Indonesia’s Entertainment and Media Industry, according to Global Entertainment & Media Outlook 2025-2029

• Indonesia’s entertainment and media (E&M) market is projected to reach US$41 million by 2029, reflecting strong regional momentum and growing consumer engagement.
• Indonesia’s E&M revenue is expected to grow at a compound annual growth rate (CAGR) of 8.4%, significantly above the global average of 4.2%, driven by digital adoption and advertising spend.
• Classified internet advertising leads Indonesia’s advertising segment, with a CAGR of 27%, followed by connected TV in-stream advertising (19%) and social & mobile out-stream video advertising (19%).
• Non-digital formats remain resilient in Indonesia, with cinema growing at a CAGR of 9.9%—driven by local films capturing 65% of box office share—and live music revenue rising from US$30 million in 2020 to a projected US$173 million by 2029.
• Indonesia’s gaming and esports market is rebounding strongly, with revenues expected to reach US$2.4 billion by 2029, driven by mobile-first behaviour and improved digital infrastructure. 

Jakarta, 2 September 2025 – The global Entertainment & Media (E&M) industry is projected to reach US$3.5 trillion by 2029, driven by a surge in advertising spend across platforms. Within the Asia-Pacific region, Indonesia’s E&M market is forecast to reach US$41 million by 2029, surpassing neighbouring countries such as Thailand (US$22 million), Australia (US$17 million), Malaysia (US$13 million), and Singapore (US$9 million), according to PwC’s Annual Global Entertainment & Media Outlook 2025–2029.

Headwinds and tailwinds are shaping the value shifts across E&M categories and segments, with similar dynamics playing out across countries. The primary headwinds stem from sluggish growth in several mature markets. The United States remains the dominant global market across all E&M sectors and, for advertising and consumer segment, is expected to grow at a compound annual growth rate (CAGR) of 3.8% over the forecast period. This places the US below the global average CAGR of 4.2%, indicating a relatively slower pace of growth and positioning it among the markets facing headwinds.

Countries showing stronger momentum—those growing above the global average—are benefiting from tailwinds, driven by rising digital adoption and consumer engagement. These tailwinds include relatively high underlying growth rates both in emerging economies and in some already relatively large markets. Alongside India and Saudi Arabia, Indonesia is among the fastest-growing E&M markets globally, with a rapidly expanding digital landscape. For advertising and consumer revenue, Indonesia is expected to grow at a CAGR of 8.4%, reaching US$24.6 billion by 2029, driven by growth in advertising and consumer spending.

Bart Spiegel, PwC Global Entertainment and Media Leader, said, “As the E&M industry continues to be impacted by broader economic uncertainty and constrained consumer spending, advertising is emerging as the leading powerhouse of the global entertainment and media industry’s revenues – a transformation expected to continue as AI transforms delivery models, democratises content production, serves highly curated content experiences, and reduces barriers to entry. The E&M industry has always been at the forefront of technological innovation, but companies will need to remain nimble and proactive to embrace the future and satisfy consumers in an ecosystem that rewards creativity and tailored content.” 

Advertising to serve as industry engine for revenue growth as AI transforms advertising models  

As growth for paid or subscription products slows amid heightened industry competition and constrained consumer spending – particularly in mature markets – advertising is forecast to represent a significant driver of revenue growth for the E&M industry at-large. 

Of the three major E&M categories analysed (connectivity, advertising, consumer), advertising is expected to grow the fastest – three times as fast (6.1% CAGR) as the consumer category (2%). This global growth is primarily driven by key advertising formats: retail internet advertising, with a projected CAGR of 15%; social and mobile in-stream video advertising, also at 15%; and connected TV in-stream internet advertising, expected to grow at 14%.

Abdullah Azis, PwC Indonesia Telecommunications, Media, and Technology Leader, said, “As for Indonesia, the leading segment is classified internet advertising, which dominates with a CAGR of 27%. This is followed by connected TV in-stream internet advertising, mirroring the global trend, with a CAGR of 19%. Unlike the global pattern, social and mobile out-stream video internet advertising is more prominent in Indonesia, with a CAGR of 19%.”

AI is impacting the E&M industry in many ways. One of the areas in which it is likely to influence revenue growth is in connected TV (any television that connects to the internet to stream video content). In 2020, global connected TV advertising revenue equated to just 5.9% of total traditional broadcast TV advertising. In 2024, this figure had jumped to 22%.

In contrast, Indonesia still sees broadcast TV advertising as the dominant format. Connected TV advertising made up only 2.6% of broadcast TV advertising revenue in 2020, increasing modestly to 7.6% in 2024. Indonesia’s broadcast TV advertising market is projected to grow at the fastest rate globally, with a CAGR of 7.7%, rising from US$1.4 billion in 2024 to US$2.1 billion by 2029. This growth will be driven primarily by terrestrial TV advertising, which is expected to grow at a CAGR of 7.0%, increasing from US$1.3 billion in 2024 to US$1.8 billion in 2029. Traditional TV companies in Indonesia are actively leveraging advertising, including targeted advertising and brand partnerships, to boost their revenue.

Connectivity remains the dominant category. Worldwide, spending is projected to reach US$1.3 trillion by 2029, growing at a CAGR of 2.8%, largely driven by mobile internet services. This global trend is mirrored in Indonesia, where connectivity’s spending forecast to hit US$16,472 million by 2029 and a higher CAGR of 3.67%. As advertising continues to grow rapidly, the gap between connectivity and advertising spend is expected to narrow significantly by the end of the forecast period.

Non-digital revenue – including live music and cinema box office – lead consumer spending

Non-digital entertainment continues to play a significant role in shaping consumer behaviour in Indonesia, with cinema and music emerging as key drivers of growth. Indonesia’s cinema sector is one of the fastest-growing globally, recording a CAGR of 9.9%—more than double the global average of 4.7%.

Abdullah Azis, PwC Indonesia Telecommunications, Media, and Technology Leader, added, “In 2024, Indonesia saw cinema admissions rise by 10.2%, driven largely by the strong performance of local films, which captured 65% of total box office share. Both the private sector and the government are playing a pivotal role in nurturing this growth—ranging from the expansion plans of international cinema operators to the Ministry of Culture’s initiatives to enhance infrastructure and support local content creation. Together, these efforts are shaping a vibrant and resilient cinema ecosystem in Indonesia.”

This strong offline momentum is also evident in Indonesia’s music market, which has seen notable growth—especially in live performances. Live music revenue rose from US$30mn in 2020 to US$157mn in 2024, and is projected to reach US$173mn by 2029, growing at a 2.0% CAGR. By 2029, total revenue from music, radio, and podcasts is expected to reach US$482mn, growing at a CAGR of 3.8%—outpacing the global average of 2.4%.

Together, these trends highlight the enduring appeal of offline experiences among Indonesian consumers. Despite increasing time spent online, a significant portion of entertainment spending remains rooted in physical formats. In 2024, non-digital formats accounted for 61% of global consumer revenue—a pattern mirrored in Indonesia, where offline formats made up 54% of consumer entertainment spending. This enduring preference underscores the resilience of traditional entertainment channels amid ongoing digital transformation.

Video gaming remains an industry bright spot 

Video games have emerged as the powerhouse of the global entertainment and media industry, with revenues expected to reach US$224 billion in 2024—outpacing the combined earnings of the movie and music sectors. This momentum is set to continue, with the market projected to climb toward US$300 billion by 2029, supported by a steady CAGR of 5.7%.

In Indonesia, the gaming and esports sector is charting an even steeper growth path. After contracting by 3.1% in 2023, the market's revenue bounced back to US$1.6 billion in 2024—reflecting a robust 9.7% year-on-year recovery. Growth is expected to peak at 12.5% in 2025, before stabilising between 5.5% and 9.2% through 2029, when revenues are forecast to reach US$2.4 billion. This strong momentum positions Indonesia as one of the world’s most dynamic gaming markets, fuelled by rising consumer engagement, mobile-first behaviour, and ongoing improvements in digital infrastructure.

Developing markets continue to lead E&M industry growth rates  

Excluding connectivity revenues (e.g., mobile service subscriptions), the US comfortably leads as the world’s largest E&M market by revenue. It is forecast to grow at a CAGR of 3.8% until 2029 – lagging below the global average of 4.2%. Looking elsewhere, E&M revenues in China – the second largest market – will rise at a CAGR of 6.1%, powered primarily by its internet advertising segment, with a CAGR or 8.9%. The fastest growing markets globally continue to be in developing markets, including India and Indonesia, all with CAGRs above 7.5%. In India, much of the growth will stem from internet advertising – which is growing at a CAGR of 15.9% – driven by expanding internet penetration, rising 5G connectivity, and the popularity of social media and short-form video content.