Global entertainment and media revenue is expected to increase 3.9 per cent annually on average over the next five years, driven primarily by the growth in online advertising and live events.

Hence, overall global entertainment and media revenue is expected to surge from A$4.16 trillion in 2023 to A$5.05 trillion in 2028, according to a new report from Pricewaterhouse Coopers.

The report noted that ad sales will hit A$1 trillion in 2026, and will account for more than half of the industry’s total revenue growth over the next five years.

Live entertainment, including sports and concerts, will also gain momentum after having been hit due to the pandemic.

Global tours of pop stars and the opening of new venues such as the Sphere in Las Vegas boosted live music sales by 26 per cent in 2023.

Also, gaming will remain one of the fastest growing sectors and is expected to top A$445.72 billion in 2028.

The report sounded an optimistic note for global cinema revenue too which is expected to recover from the Covid downturn. In 2026, it is projected to surpass the pre-pandemic levels of 2019.

Meanwhile, PwC predicted that companies in the streaming industry will lean more heavily on advertising. By 2028, ad-based subscriptions will account for about 28 per cent of total streaming revenue.

That finding is backed by the biggest player in the streaming space, Netflix, which recently confirmed that it will launch an in-house advertising technology platform by the end of 2025. As of May, its ad-supported plan has 40 million global monthly active users — up from just 5 million a year ago. Netflix launched its ad-supported plan in 12 markets in November 2022. In Australia, its ad-supported plan is its cheapest and costs A$7.99.

Furthermore, online connected TV (CTV) ads served during video programming will see a big jump with sales doubling from A$30.46 billion in 2023 to A$61.21 billion in 2028.

One trend that retail media players are increasingly experimenting with is ‘shoppable TV’ advertising, which allows consumers to buy products directly from ads.

An example of that in Australia came in October last year when Paramount Global announced that it had selected Paramount Australia as the pilot market for a Shoppable TV initiative. Viewers receive an on-screen message inviting them to pause content and explore “Survivor” merchandise available in the Paramount Shop. Once paused a feature product carousel appears showcasing available products and a ‘Shop Now’ call to action. After selecting a product, a shoppable screen expands providing detailed product information and a QR code directing viewers to ‘Shop Now’.