Online Entertainment Market Size, Share and Trends 2024 to 2034

Online Entertainment Market Size and Forecast 2024 to 2034

The global online entertainment market size accounted for USD 101.82 billion in 2024 and is projected to reach around USD 338.96 billion by 2034, growing at a CAGR of 12.78% from 2024 to 2034. The rising preference towards the consumption of internet-based entertainment such as web series, online video gaming, podcasts, and others is driving the growth of the market.

Online Entertainment Market Key Takeaways

• North America dominated the online entertainment market with the largest market share of 46% in 2023.
• Europe is anticipated to have significant growth during the forecast period.
• By form, the video segment held a dominant presence in the market in 2023.
• By form, the audio segment is expected to grow at a significant rate in the market over the studied period.
• By devices, the smartphone segment dominated the market globally in 2023.
• By devices, the smart TV, projectors, and monitors segment is predicted to witness significant growth in the market over the forecast period.
• By revenue model, the advertisement segment registered its dominance over the market in 2023. 
• By revenue model, the subscription segment is projected to expand rapidly in the online entertainment market in the coming years.

U.S. Online Entertainment Market Size and Growth 2024 to 2034

The U.S. online entertainment market size is evaluated at USD 32.79 billion in 2024 and is anticipated to be worth around USD 111.12 billion by 2034, growing at a CAGR of 12.96% from 2024 to 2034.

North America dominated the online entertainment market in 2023. The region is considered the hub for technology and entertainment. Regional countries are the early adopters of technologies in every industry for better accuracy and profitability. Countries like the U.S. have the world’s biggest media and entertainment house, Hollywood, which incorporates the latest technology. The region also consists of the headquarters of Netflix, Disney+, YouTube, and others. The rising availability of high-speed internet connectivity and the robust consumer base for the media and entertainment industry, online gaming, and other data-intensive platforms are contributing to the growth of the market.

• The U.S. media and entertainment industry is the largest in the world with $649 billion, which is $2.8 trillion in the global market and anticipated to increase by $808 billion by 2028.
• The global revenue of the media and entertainment industry is increasing exponentially, increasing from the live music events and cinema box office collection, which is growing continuously year-on-year by 26% and 30.4% in 2023, respectively.

Europe anticipates significant growth during the forecast period. The growth of the market in the region is attributed to the higher preference for high-speed internet connectivity, social media culture, and the availability of leading media and entertainment houses, which boosts the growth of the online entertainment market. The rising younger population and the inclination towards esports, online gaming, podcasts, live streaming, vlogging, online education channels, and others are further contributing to the expansion of the market in the region.

Market Overview

Online entertainment is simply considered as the consumption of entertainment via online or digital media. The digital entertainment industry has revolutionized the concept of media and entertainment over the past decades, thanks to technologies and gadgets like computers, laptops, smartphones, tablets, and others. Online entertainment is known for its easy accessibility and immersive experience. Online entertainment includes online entertainment channels, video games, social media entertainment, and others. The rising online content consumption in terms of podcasts, video content, storytelling, audio, and others are collectively driving the growth of the online entertainment market.

Online Entertainment Market Trends

The technologies are helping to revolutionize the entertainment industry

• Augmented reality: Augmented reality helps in the digital element to the live view by the use of the smartphone camera. 
• Virtual reality: Virtual reality enhances the complete immersive experience, which is mainly used for gaming, real estate, healthcare, and the education industry.
• Mixed reality: It is the mixture of both virtual and augmented reality in which the real world and digital objects interact with each other.

For Instance,

• In December 2023, a leading AR platform that offers digital collectible movie tickets and interactive experiences to the latest blockbuster films announced the collaboration with blockchain platform Avalanche to help power its “Fandime” NFTs, a new type of movie studio to attract more audience.

How Can AI Impact the Online Entertainment Market?

Artificial Intelligence (AI) plays a significant role in the media and entertainment industry, including fields such as films, music, gaming, TV, content creation, and book publishing. In the music industry, AI is used to make recommendations and produce music. In the film and TV industry, it is used for editing, adding VFX, scripting, and several other options. In the advertising industry, its predictive analytics and content generation properties are inclining the industry towards profitability. AI automates several manual tasks in the media and entertainment industry in real time with greater efficiency and profitability.

• In September 2024, Huawei launched a range of AI solutions as part of a cloud service to help the media and entertainment industry. The AI solution was introduced at the company’s Cloud Media and Entertainment Summit in Amsterdam. 

Online Entertainment Market Growth Factors

• Rising social media: The increasing trend towards the social media culture and the rise in user-generated content by individuals is driving the growth of the online entertainment market.
• Increased Internet connectivity: The rise in Internet connectivity, such as the evaluation of high-speed data connectivity like 5G and 4G and the rising adoption of the technologies in every field of industries, is contributing to the growth of the market. 
• Rising population: The rising global population, especially the younger population, highly prefers online media and the internet for problem-solving, and the younger generation is increasingly interested in media and entertainment as careers.
• Rising online media channels: The rising penetration of the internet and smartphones for entertainment consumption over the traditional form is accelerating the expansion of online entertainment channels and media houses.
• Technological adoption: The population's rising adoption of technologies and gadgets, such as smartphones, laptops, tablets, and other accessories, makes them prioritize their content, which also contributes to the growth of the online entertainment market.

Market Scope

Market Dynamics

Driver

Rising preference for online media over traditional channel

The rising interest and inclination towards online media channels for better content and the rise in the OTT platform are driving the adoption of online entertainment over traditional forms of entertainment. The rising internet penetration and the availability of high-speed data connectivity are driving the consumer base of online entertainment and social media channels, and the rising investment in online entertainment media by the leading producers is further contributing to the expansion of the online entertainment market.

Restraint

Health issues

The rising screen time due to the higher consumption of social media, entertainment, gaming, and other applications results in a lack of social and physical activities, which may cause severe health issues that limit the adoption of the market.

Opportunity

Rising consumer base for online video gaming

The increasing consumer base for online video gaming, especially in the younger generation, is driving the opportunity for the expansion of the market. The gaming industry is significantly contributing to the expansion of the online entertainment industry. The rising e-sports culture is accelerating the interactive gaming and immersive user experience with enhanced technology.

Form Insights

The video segment held a dominant presence in the online entertainment market in 2023. The rising consumption of online entertainment, especially video content by several digital platforms, is driving the growth of the video segment in the online entertainment industry. Video content attracts more consumers with its high-definition quality and visual effects, making consumers more accessible. The rising penetration of the internet and the evaluation of high-speed internet connectivity are driving consumers to adopt the segment more.

The rising penetration of internet services by the population and the continuously developing media and entertainment industry in private and public online platforms like Netflix, Amazon Prime, YouTube, Disney+, and other mediums is accelerating the expansion of the video segment. The rising interest in digital media and video content making among the younger population and the investment in producing the web series and launching it on the digital entertainment platform are further contributing to the expansion of the segment.

The audio segment is expected to grow at a significant rate in the online entertainment market over the studied period of 2023 to 2034. The rising number of audio platforms for entertainment and educational purposes in online media is driving the growth of the segment. There are leading audio platform types, including Audible, Packet FM, Pixabay, and others.

Device Insights

The smartphone segment dominated the online entertainment market globally in 2023. The rising population and the rising concern over staying updated with the world and current scenarios are driving the adoption of the smartphone segment. The rising penetration of the internet and the evaluation of high-speed internet services are further boosting the demand for smartphones. The development in internet connectivity with high-speed data like 4G and 5G worldwide evaluation is also accelerating the market for smartphones.

The rising market competition in the mobile phone companies with the availability of different designs, technologies, and features in mobile phones with enhanced internet connectivity and the rising inclination towards the social media culture, online games, and user-generated content (UGC) are driving the demands for the smartphone segment.

The smart TV, projectors, and monitors segment is predicted to witness significant growth in the market over the forecast period. The rising advancement in technology and the evaluation of smart TVs, projectors, and monitors in households for the consumption of online entertainment is driving the growth of the segment.

Revenue Model Insights

The advertisement segment registered its dominance over the online entertainment market in 2023. Online entertainment, or digital entertainment, is one of the rapidly growing industries all over the world, with the largest consumer base. The online content platforms have a large number of consumers, which provides advertisement agencies with a wide reach, targeted audience, and low-cost advertisement. Online entertainment includes video streaming services and social media with a large audience, which helps advertisers to make more precise advertisements to the consumer based on search behavior and interest. Many advertisement agencies are highly investing in social media channels and sponsoring a large amount of content. The most prevalent and highly used user-generated content platforms, like TikTok and YouTube, monetize their content by using advertisements and revenue sharing with creators.

The subscription segment is projected to expand rapidly in the online entertainment market in the coming years. The rising culture of subscription to a particular channel or package for unlimited entertainment is boosting the subscription segment. A lot of platforms are on the rise that use subscription-based services, which allow the user to pay to view premium content. Platforms like YouTube use subscriptions to remove ads and support creators, while Instagram launched its new feature of premium content in which consumers pay subscription charges to watch premium content of content creators.

Online Entertainment Market Companies

• Netflix Inc.
• Google LLC
• Facebook
• Amazon Web Services (AWS)
• Tencent Holdings Ltd.
• Sony Corp
• King Digital Entertainment Ltd.
• Spotify Technology S.A.
• Rakuten Inc.
• CBS Corporation.

Recent Developments

• In August 2024, Smash Entertainment Pvt Ltd launched its web-based booking engine that allows consumers to book slots for the cricket simulator or the bowling alley from anywhere via laptops and phones. 
• In September 2024, Digitalbox, an Online entertainment publisher launched a series of highly-targeted sites that help in delivering the “super engagement which is increasingly favored by the platforms”. 

Segments Covered in the Report

By Form

• Video
• Audio
• Games
• Internet Radio
• Others

By Device 

• Smartphones
• Smart TVs, Projectors, & Monitors
• Laptop, Desktops, & Tablets
• Others

By Revenue Model

• Subscription
• Advertisement
• Sponsorship
• Others

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East and Africa