Cross-channel engagement: How a mouse is winning the game
The Walt Disney Company is a model for cross-channel engagement, communicating and engaging their customers across every channel.
No industry is immune to disruption, but media and entertainment (M&E) stands out for its unique volatility. New technologies, fast-changing consumer preferences, and low barriers to entry make it one of the most dynamic—and unpredictable—industries. This volatility factors into media and entertainment trends 2025.
Expanding digital ecosystems, the streaming market’s maturation, and the rise of generative AI are forcing media players to adapt on the fly and hunt for new ways to drive growth.
The atmosphere of uncertainty is acknowledged by industry leaders: A PwC survey found that 57% of executives believe their current business models may not remain viable in the next decade.
5 media and entertainment industry trends
For M&E industry leaders, 2025 will be all about rethinking how they do business. Whether they’re in broadcasting, print publishing, gaming, music, advertising agencies, or pre- and post-production, they can’t be afraid to make 180-turns or try something completely new in order to get a piece of the market’s projected growth.
According to PwC’s industry outlook, media and entertainment industry revenue will surpass $3.4 trillion by 2028.
Getting a share of this new revenue requires business model reinvention, the firm said: “BMR goes beyond tinkering around the edges to boost margins by a few basis points or seek incremental growth. Rather, the necessity is to reimagine how your company creates, delivers and captures value.”
With that in mind, here are the top M&E trends that will have a big impact in 2025:
- Advertising leads growth: Advertising will become a core strategy in the media and entertainment industry, even for companies that previously steered clear of ad-based revenue models.
- Niche audiences and micro-moments: Media companies will focus on creating brief interactions with highly personalized content that resonates deeply with specific audiences.
- Business model innovation: With so many streaming services, the market is saturated and forcing major streaming platforms to try new models such as ad-supported subscriptions to diversify their revenue sources.
- Gaming’s accelerating growth: Driven by global appeal, gaming is one of the fastest growing sectors in the media and entertainment industry.
- Generative AI: Media companies will look for ways AI can boost revenue, including personalized experiences and real-time recommendations.
1. Advertising becomes top M&E growth trend
Advertising will account for 55% of revenue expansion in the media and entertainment industry over the next five years, according to PwC.
This 2025 trend means that advertising will become a core element of corporate strategies, even for companies that previously steered clear of ad-based revenue models.
Digital advertising, particularly on connected TV and retail platforms, is revolutionizing how brands engage with consumers. Shoppable TV ads, non-video display ads, and influencer campaigns are capturing viewers’ attention across devices.
With ad spending expected to reach $1 trillion by 2026, brands must focus on creative quality and tap into customer data to guide their strategies. Monetizing consumer insights, bridging product discovery with purchase, and staying ahead of privacy regulations are key to maximizing returns.
As consumers retreat into niche platforms and on-demand experiences, targeted, high-impact advertising will be essential to keep them engaged.
2. Media & entertainment industry seizes on micro-moments
Compelling content is always the goal, but in 2025, personalized media is becoming just as important.
Brands recognize the growing value of engaging smaller, niche communities. Creating “micro-moments”—brief interactions with highly personalized content that resonates deeply with specific audiences—is a growing trend in the industry.
Companies can personalize the media experience by using data gathered at every touch point. With that insight, they can predict and serve up the content consumers want, when they want it, and how they prefer getting it. This also allows them to monetize audience insights to drive more revenue by upselling content or selling related services and goods.
Creator and fandom economics are another aspect of this new engagement model for media and entertainment brands. According to a Goldman Sachs report, the creator economy could reach half a trillion dollars by 2027.
The focus on passionate micro-communities enables brands to tap into highly engaged audiences often overlooked by traditional media.
3. 2025 trend: Switching things up in the streaming business
With so many streaming services, the market is saturated. Subscription growth is slowing, forcing major streaming platforms to find ways to diversify their revenue sources.
Many are introducing ad-supported “hybrid tiers,” where viewers accept ads in exchange for a reduced subscription fee. Both large and smaller, regional platforms are adopting this approach.
Ad-supported subscriptions appear to be a hit. For example, almost 40% of Disney+ subscriptions in the US and Canada will be ad-supported, up from 3% in 2022.
Alongside ad-based models, streaming media companies are exploring other strategies to increase revenue, such as limiting password sharing and investing in high-demand content like live sports to attract both subscribers and advertisers.
The trend of bundling services—sometimes through third-party aggregators—reflects the industry’s realization that consumers are getting choosy and cost-conscious.
In regions like India, consolidation among regional streaming platforms catering to local languages signals an emerging trend. Globally, companies are exploring mergers, acquisitions, and partnerships to streamline operations and offer curated content. This is impacting the market for over-the-top—video or audio content that’s delivered over the internet without a traditional cable or satellite TV provider—in 2025 and beyond.
4. Gaming remains a hot trend in M&E industry
While advertising will be responsible for the majority of media and entertainment’s total revenue, gaming is one of the fastest-growing sectors in the industry. Driven by global appeal, it’s projected to surpass $300 billion in revenue by 2028, more than twice its 2019 amount, according to PwC.
The number of gamers worldwide is expected to top 3 billion by 2029, up from 1.8 billion in 2019, Statista estimates, with the Asia-Pacific region counting the most gamers.
In the US, 109.6 million people play videos games weekly with Generation Alpha having the highest percentage of gamers (79%), according to the Entertainment Software Association.
By 2028, social and casual gaming is projected to generate more than $300 billion and make up 75% of the global video games and esports market, PwC estimates. Advertising within games is also a fast-growing revenue stream, expected to achieve a 15.4% compound annual growth rate and reach $148 trillion by 2028.
Media and entertainment companies can take advantage of the gaming trend by investing in collaborative opportunities for social gameplay. For example, Disney and Epic are working together to create a gaming ecosystem that envelops Fortnite, Pixar, Marvel, and Star Wars.
5. Exploring use of generative AI, cautiously
To date, M&E leaders have mostly focused on how AI can cut costs and improve efficiency. In 2025, they’ll also look to ways the tech can uncover revenue opportunities, especially in advertising.
Integrated into content creation and advertising tools, AI can help companies create highly personalized experiences and deliver real-time recommendations.
But in 2025, big TV and film studios likely will move cautiously in adopting AI for content creation, allocating less than 3% of their production budgets to AI tools, Deloitte predicts.
There are plenty of reasons to proceed with caution: AI tools are new and far from proven, and can pose liability risks when based on public models. Creators have moved fast to protect their work: The 2023 Hollywood writers’ strike ended with the union securing limits on the use of AI.
Operational spending, however, will shift 7% into AI tools to support functions such as contract and talent management, marketing and advertising, and localization to expand market reach, Deloitte says.
Still, media companies need to be careful in using AI for advertising so they don’t turn off viewers. Netflix learned this the hard way when an AI-generated ad for its Arcane series sparked tremendous viewer backlash.
M&E industry: Driving deeper, lasting engagement
In an era of short attention spans and so many media and entertainment options, winning over consumers is a supreme challenge. New technologies like AI pose both opportunities and challenges for audience engagement.
But M&E leaders who stay on top of fast-moving trends by taking a thoughtful approach to innovation can deliver the best content to forge deeper connections with audiences and drive growth for years to come.