US Edition: Global Entertainment & Media Outlook 2025-2029

PwC’s 26th annual Global Entertainment & Media Outlook offers an in-depth, five-year forecast of evolving forces that will likely shape an industry on track to be a $3.5 trillion market by 2029. Here’s a snapshot of what we found and what’s to come.

In 2029, an additional US$577 billion in revenues will be available to E&M industry participants, compared with 2024. As business models are transformed, companies must understand precisely where new pools of revenues will form. See below for four key segments of opportunity.

OTT video

The US OTT market, a pivotal force in the global streaming landscape, is projected to grow at 5.9% CAGR from US$61.9bn in 2024 to US$112.7bn in 2029 maintaining its position as the world’s largest and most influential OTT market. By 2029, the US is expected to maintain its position as the world’s largest and most influential OTT market by representing a substantial portion of worldwide OTT revenue. Achieving this growth will require US operators to innovate their business strategies, balancing aggressive content investments with sustainable growth and profitability objectives.

Mixed reality

Immersive technologies in the US are gradually progressing, but with more tempered expectations as the market transitions from early hype to practical application. The US continues to lead the mobile augmented (AR) sector around the world bringing in US$12.7bn in revenue representing a 15.7% increase year-on-year in 2024. Adoption across virtual reality (VR), AR, and metaverse-related platforms are being shaped by evolving consumer preferences, increased competition for attention and spending, and a stronger focus on real-world utility. The convergence of technologies, particularly AI and mixed reality technologies, will ultimately accelerate the path to the metaverse as the next 3D digital frontier.

Internet advertising

The US advertising market experienced strong growth of 14.9% year-on-year in 2024, reaching a total value of $258.6bn, and is expected to expand at an 8.5% CAGR to reach a value of US$389.1bn by 2029. Segments across the market benefitted from major cyclical events and ongoing shifts in US media consumption, with connected TV (CTV) advertising outpacing overall growth. Underlying this momentum is the growing role of artificial intelligence, which is helping platforms and brands deliver more relevant and effective advertising. At the same time, rising regulation and privacy concerns are pushing the industry toward more secure and transparent data practices.

AI

The US artificial intelligence (AI) market is reshaping the media and entertainment sector as generative AI moves from experimentation to widespread enterprise and consumer adoption. While AI has long supported functions like analytics and automation, the recent surge in generative models is now impacting M&E creative processes. In 2024, investment in generative AI businesses reached over US$56bn, as major players seek to harness its speed, scale, and creative potential. So far, AI’s impact has centered on operational efficiency, while simultaneously working to unlock new revenue streams and navigate challenges around content quality, trust, and shifting monetization models.