PWC: Ads will make up of a quarter of streamers' revenues by 2028

In its Global Entertainment and Media Outlook 2024-2028, PWC analysts suggest that by 2028, advertising will contribute almost 28 per cent of all the money that streaming services make

By Jenny Priestley

Published: July 16, 2024

In its Global Entertainment and Media Outlook 2024-2028, PWC analysts suggest that by 2028, advertising will contribute almost 28 per cent of all the money that streaming services make

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As the global streaming services pivot towards advertising and subscription-funded strategies, a new report from PWC suggests adverts are going to be even more important in the coming years.

In its Global Entertainment and Media Outlook 2024-2028, PWC analysts suggest that by 2028, advertising will contribute almost 28 per cent of all the money that streaming services make. That's an increase from 20 per cent in 2023.

PWC added it expects the global entertainment and media industry will reach $3.4 trillion as a sector by 2028.

Global subscriptions to OTT services are predicted to rise to 2.1 billion by 2028, up from 1.6 billion in 2023. However, the global average revenue per OTT video subscription is projected to only increase from $65.21 in 2023 to $67.66 in 2028.

The report also looked at the rise of generative AI (GenAI) and its impact on entertainment and media companies.

Thus far, much of the discussion surrounding AI in E&M has focused on reducing and controlling costs-rather than driving new revenue streams, said the report.

It suggests one area where GenAI might deliver high potential is in advertising. GenAI is increasingly being integrated into content creation and advertising tools, it said.

GenAI can be used to quickly develop creative approaches for different contexts-and then to iterate and refine rapidly in response to consumer attention and uptake. If GenAI can be harnessed to offer new experiences and create new revenue streams, the growth potential is even greater.

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