The New Attention Economy: AI Ads & Live Events Reshape Media's Future

LONDON, UK – June 22, 2026 – The global entertainment and media industry is charting a course toward a staggering US$4.2 trillion valuation by 2030. But the map to this new world, detailed in PwC's latest Global Entertainment & Media Outlook, reveals a profound strategic realignment. The growth engine is not what the last decade taught us to expect. It's a dual-powered machine, running on the hyper-efficient fuel of AI-driven advertising on one side, and the raw, tangible energy of live, in-person experiences on the other.

This is more than just a forecast; it's a signal of a fundamental shift in the global flows of attention and capital. The era of chasing subscriptions at all costs is plateauing, giving way to a more complex ecosystem where value is created through algorithmic precision and authentic human connection. For strategists in boardrooms from Hollywood to Silicon Valley, understanding this bifurcation is no longer optional—it is the key to navigating the next decade.

The $1.4 Trillion Engine: Advertising's AI-Powered Ascent

The most powerful current reshaping the media landscape is the torrent of advertising revenue, projected to swell to US$1.4 trillion by 2030. Growing at a 5.6% compound annual growth rate (CAGR), advertising is set to eclipse consumer spending this year, making it the industry's primary growth driver. This isn't just more of the same; it's a qualitative transformation powered by artificial intelligence.

The term "AI-powered hyper-personalisation" is now ubiquitous, but its strategic implication is simple: advertising is becoming dramatically more effective. By leveraging AI to analyze vast datasets in real-time, platforms can deliver messages with a precision that commands higher prices per impression. This is the core rationale behind the projected 7.2% CAGR for internet advertising alone, which is on track to become an industry titan in its own right. As PwC's Global Entertainment & Media Sector Leader, Bart Spiegel, notes, "Advertising continues to remain a powerhouse... and it will play an increasingly greater role as AI-powered hyper-personalisation transforms engagement with end-users."

The ripple effects are seismic. The steady decline of traditional television, forecast to shrink by 1.1% annually, is a direct consequence of this shift. Advertisers are following audiences to digital platforms where engagement can be measured, personalized, and monetized with ruthless efficiency. The strategic imperative has moved from selling content to consumers to selling consumer attention to advertisers, a model that AI is supercharging.

Beyond the Screen: Subscription Fatigue and the 'Shared Reality' Premium

While AI perfects the digital realm, a powerful counter-trend is emerging in the physical world. The very platforms that defined the last decade of media—streaming services—are confronting the hard limits of market saturation. The report identifies a palpable 'subscription fatigue' in mature markets, slowing the once-meteoric growth of Over-The-Top (OTT) services.

In response, streamers are rewriting their playbooks. The strategic rationale points toward inevitable consolidation, aggressive bundling of services to reduce churn, and a crucial pivot to advertising-supported tiers (AVOD). The forecast that ads will constitute 22.6% of OTT revenue by 2030, up from 19.4% today, confirms that the subscription-pure model is no longer sufficient. These platforms must now compete in the sophisticated advertising ecosystem they once sought to bypass.

Juxtaposed against this digital recalibration is the robust health of what the report calls "shared reality" experiences. A collective yearning for tangible, communal events in the wake of the pandemic is fueling significant growth. The live experience economy—encompassing cinema, live music, and trade shows—is projected to grow into a nearly $300 billion market by 2030. The global box office is steadily recovering toward its pre-pandemic highs, driven largely by pricing power and demand in the Asia-Pacific region. Live music, buoyed by major global tours, continues its steady climb. This isn't just nostalgia; it's a market signal that consumers are willing to pay a premium for unique, in-person moments that cannot be replicated on a screen.

The Unsung Giants: How Betting and Business Are Redrawing the Map

Perhaps the most telling insights in the forecast lie in the sectors quietly outpacing traditional media pillars. The explosive growth of online betting and gambling reveals a massive, newly tapped vein of consumer engagement and spending. This segment, which has already doubled in revenue since 2021, is projected to reach nearly $120 billion by 2030—surpassing the entire global cinema market. Its 8.5% CAGR points to a powerful combination of regulatory easing, digital accessibility, and a fundamental consumer desire for interactive, high-stakes entertainment.

Simultaneously, the world of business-to-business events is undergoing a renaissance. Far from being a casualty of remote work, trade shows and experience-led business festivals have become a booming industry, projected to reach $44.6 billion by 2030. This sector is now roughly the same size as the global live music market and is growing more rapidly. The strategic insight here is that high-value networking and deal-making are, like concerts and films, premium live experiences that command significant investment. It broadens the definition of "media" to include the critical flows of influence and capital that happen when industry leaders gather.

These burgeoning sectors demonstrate that the future of entertainment and media is not a monolith. The landscape is fragmenting and re-forming around new centers of gravity. The quiet moves in online gambling and B2B events are creating industry giants that will soon demand as much strategic attention as any Hollywood studio or streaming platform. The challenge for every player in this evolving $4.2 trillion ecosystem will be to master the art of the dual-track reality: delivering hyper-personalized digital content at scale while creating unforgettable moments in the real world that people will pay anything to experience.