China’s Entertainment and Media Industry Set to Close Gap on U.S. Over Next Four Years

China’s entertainment and media industry is on the rise, with projections showing a significant increase in advertising and consumer spending revenues. According to PWC’s latest Global Outlook, the industry in China is expected to grow by more than 7% to reach $362.5B by 2028. This growth rate is nearly double that of the U.S., although the American market will still remain significantly higher at $808.4B.

While the U.S. currently holds the title of the world’s biggest entertainment and media market, China is quickly closing the gap. With continued strong growth in the Chinese market, it is steadily gaining ground on the U.S. in terms of market size. However, tight government regulations in China can make investing in the industry more complex than in other regions.

The report also highlighted the fastest growing markets between now and 2028, pointing to Indonesia and India. Both countries are predicted to experience rapid growth in the entertainment and media industry in the coming years. PWC noted that India, in particular, is set to become the world’s fastest-growing OTT video-streaming market, driven by its vast population and cricket-crazed audience.

One of the key areas of focus in the report was the development of advertising revenues in the streaming era. PWC projected that global ad revenues are expected to surpass $1 trillion in the next two years. By 2028, these revenues are forecasted to double the figures from 2020. This growth has led leading streaming platforms like Netflix, Disney, and Prime Video to reevaluate their business models and explore new revenue streams, including advertising and cracking down on password sharing.

China’s entertainment and media industry is poised for substantial growth in the coming years, with projections indicating that it will close the gap on the U.S. market. With advancements in technology and shifting consumer behaviors, the industry is evolving rapidly, presenting both challenges and opportunities for industry players. As countries like Indonesia and India also emerge as key growth markets, the global entertainment and media landscape is set for significant transformation in the years to come.