The entertainment and media industry in China is on a steady upward trajectory, with projections indicating that it will soon rival the industry in the U.S. According to the latest Global Outlook by PWC, China’s advertising and consumer spending revenues are expected to surge by over 7% to reach $362.5B by 2028. This growth rate is almost double that of the U.S., although America’s industry will still maintain a significant lead with revenues of $808.4B. Despite this, PWC notes that China is steadily closing the gap on the U.S. in terms of market size due to its sustained robust expansion in recent years.
While China’s entertainment industry is experiencing notable growth, PWC highlights that tight government regulation can make investing in the country more complex than in other territories. This regulatory environment adds a layer of challenge for businesses looking to capitalize on China’s expanding market. However, despite these hurdles, the industry’s promising growth prospects continue to attract attention and investment.
PWC’s report also sheds light on the rapid growth expected in emerging markets such as Indonesia and India. These nations are forecasted to experience significant expansion in their entertainment and media industries over the next few years. India, in particular, is expected to become the world’s fastest-growing OTT video-streaming market, driven by its vast and diverse population’s appetite for sports content, especially cricket. By 2028, India’s industry is projected to be worth nearly $100B, with Indonesia following closely behind.
Implications for the Streaming Era
The report delves into the changing landscape of advertising revenues in the streaming era, predicting a substantial increase in global ad revenues reaching over $1 trillion in the near future. Streaming giants like Netflix, Disney, and Prime Video are adapting their business models to tap into this revenue potential, including incorporating ads and cracking down on password sharing. This shift reflects the evolving preferences and behaviors of consumers as digital platforms continue to dominate the entertainment and media landscape.
China’s entertainment and media industry is on a path of robust growth, positioning itself as a formidable player on the global stage. By capitalizing on emerging markets, navigating regulatory challenges, and adapting to the demands of the digital age, the industry is poised for continued expansion and innovation in the years to come.
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