China’s entertainment and media industry is on the brink of significant growth, with a projection to close the gap on the U.S. market over the next four years. According to PWC’s latest Global Outlook report, advertising and consumer spending revenues in China are expected to surge by more than 7% to reach $362.5B by 2028. This growth rate is nearly double that of the U.S., although America’s industry will still maintain a substantial lead with revenues at $808.4B.
The report highlights that China’s entertainment industry has been steadily expanding in recent years, attributing its growth to continued strong performance. This growth trend has positioned China to narrow the gap on the U.S. market in terms of size. However, the report also emphasizes that tight government regulations in China can pose challenges for investors compared to other territories.
PWC’s forecast also indicates that the fastest-growing markets between now and 2028 will be Indonesia and India. These regions are expected to experience rapid growth in the coming years, driven by distinctive market dynamics. India, in particular, is poised to become the world’s fastest-growing OTT video-streaming market, catering to its vast, diverse population with a significant interest in sports content, notably cricket. By 2028, India’s entertainment industry is projected to be worth nearly $100B, with Indonesia following closely behind.
The report also sheds light on the evolving landscape of advertising revenues in the streaming era. Global ad revenues are forecasted to surpass $1 trillion in the next two years, doubling the figures from 2020 by 2028. PWC points to a “plateauing effect” that has prompted leading streaming services like Netflix, Disney, and Prime Video to reshape their business models and explore new revenue streams, including advertisements and measures to combat password sharing.
China’s entertainment and media industry’s growth trajectory presents a promising outlook for the coming years. With a focus on expanding markets, evolving dynamics, and shifting revenue streams, the industry is set to make significant strides in catching up with established markets like the U.S. The forecasted growth not only highlights the increasing influence of emerging markets like China, India, and Indonesia but also underscores the need for adaptation and innovation within the industry to capitalize on these opportunities.