The latest Global Outlook report by PWC predicts that China’s entertainment and media industry is on track to narrow the distance with the United States in the next four years. With an expected increase of over 7%, revenues from advertising and consumer spending in China are projected to reach $362.5 billion by 2028. This growth rate is nearly double that of the U.S., although the American market’s total value will still far exceed China’s at $808.4 billion. Despite this, the report notes that the U.S. market’s growth has been slower due to its maturity and existing scale.
China’s entertainment industry has been expanding steadily in recent years, with PWC highlighting its strong growth trajectory. The country is steadily closing the gap with the U.S. in terms of market size, although tight government regulations pose challenges for investors. Despite these obstacles, the industry continues to show promising growth potential, positioning China as a key player in the global entertainment and media landscape.
The report also identifies Indonesia and India as the fastest-growing markets between now and 2028. Both countries are expected to experience rapid growth in the entertainment and media sector, driven by unique market dynamics. India, in particular, is projected to become the world’s fastest-growing OTT video-streaming market, catering to a vast and diverse population with a strong interest in sports content, especially cricket. By 2028, India’s industry is forecasted to be valued at nearly $100 billion, with Indonesia following closely behind.
The report emphasizes the evolving landscape of advertising revenues in the streaming era, predicting a significant increase in global ad revenues in the coming years. By 2028, global ad revenues are expected to surpass $1 trillion, doubling the figure from 2020. Leading streamers such as Netflix, Disney, and Prime Video are adapting their business models to leverage new revenue streams, including advertisements and measures to combat password sharing. This shift reflects the changing nature of the entertainment and media industry, as companies strive to stay competitive and innovative in the evolving digital landscape.
China’s entertainment and media industry is poised for substantial growth in the coming years, with the country making significant strides to close the gap with the U.S. and emerging as a key player on the global stage. As emerging markets like India and Indonesia demonstrate rapid growth potential, and advertising revenues continue to evolve, the industry as a whole is undergoing dynamic changes that will shape its future landscape.
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