PwC today released the China Summary of its "Global Entertainment and Media Outlook 2025-2029." The summary projects that China's entertainment and media industry revenue will reach approximately US$561 billion in 2029, representing 16% of the global total. The Chinese entertainment and media market is projected to grow at a compound annual growth rate of 4.5% from 2024 to 2029, exceeding the global average of 3.7%. Mixed reality (VR & AR, Metaverse), online advertising, and film will continue to maintain strong growth.
PwC Mainland China and Hong Kong Media Industry Leader, Christine Yau, said: "The entertainment and media industry has long been at the intersection of various industries. The global entertainment and media industry will return to equilibrium in 2024, with global revenue reaching US$2.9 trillion and projected to reach US$3.5 trillion by 2029. Generative AI can improve efficiency and productivity while becoming a new way to conduct business across and within industries."
Mixed Reality (VR & AR, Metaverse)
Leveraging a large user base, a digital advertising ecosystem, and rapid growth in consumer spending, the mixed reality market continues to experience positive growth. Consumers' pursuit of entertainment experiences continues to evolve, and the application of mixed reality technology in leisure and entertainment sectors, such as gaming, performances, and fitness, meets people's needs for enriching their lives and improving their quality of life. The Chinese mixed reality market is expected to grow by 25.2% in 2024 and is expected to maintain steady growth, with total revenue projected to reach US$22.8 billion in 2029 at a compound annual growth rate of 13.1%.
The AR market is the fastest-growing segment of the mixed reality market. Mainland China is the world's second-largest mobile AR market and boasts the fastest growth. Mobile AR revenue reached $11.9 billion in 2024, a year-on-year increase of 27.9%, the fastest growth rate globally. By 2029, it is projected to grow at a compound annual growth rate of 13.1% to $22.5 billion, surpassing the United States to become the world's largest mobile AR market.
Internet Advertising
Internet advertising is the largest advertising segment and maintains a steady growth trend. Mainland China is the world's second-largest internet advertising market, with total revenue reaching $143.8 billion in 2024 and projected to reach $220.4 billion in 2029. The growing number of content creators and short video platforms will also increase internet advertising's share of market revenue. Data calculations on short video social platforms enable more precise advertising, driving the rapid growth of internet advertising. Artificial intelligence (AIGC) technology is widely used in advertising targeting and content generation, and major internet advertising agencies have launched related tools.
The growth of China's internet advertising will be driven by other display-based internet advertising, with its revenue share expected to increase to 31% by 2029. In-stream and out-stream internet advertising is one of the fastest-growing segments, with a compound annual growth rate of 9.23% from 2024 to 2029. China's mobile internet advertising has developed rapidly in recent years. With the expansion of the market, the diversification of advertising formats, and advancements in technologies such as artificial intelligence, China's mobile network penetration rate is expected to reach over 88%, positively impacting the growth of mobile internet advertising in China.
Movies
The film industry continues to recover in the domestic consumer market, particularly during the 2025 Spring Festival holiday season. The animated film "Nezha 2" became the first Chinese film to exceed $2 billion at the box office, ranking first at the global box office and further promoting the internationalization of Chinese films. As of July 8, 2025, domestic box office revenue had reached 70.6% of the full year 2024. The overall trend of the film market is positive, with a projected compound annual growth rate of 5.25% for Chinese film revenue from 2024 to 2029, indicating a steady recovery for the industry as a whole.
China and the United States are the world's two largest film markets. Chinese film revenue is projected to account for 22% of global revenue by 2029. The Chinese film market remains a global leader in screen count, moviegoers, and film output. During 2024, 4,658 new screens were added to urban cinema chains, bringing the total to 90,968, and urban cinema attendance reached 1.01 billion. This growth is expected to continue throughout the forecast period. Chinese films are increasingly influential at the global box office, but the majority of box office revenue still comes from China, and the share of domestic films continues to increase annually. In the first half of 2025, 16 domestic films grossed over 100 million yuan, totaling RMB 29.231 billion (a year-on-year increase of 22.91%), and the share of domestic films rose to 91.2% (compared to 77.93% in the same period last year).
Video Games and Esports
China is the world's largest video games and esports market, with total revenue projected to grow at a compound annual growth rate of 5.73% to US$82.7 billion in 2029. With the rapid evolution of digital technology and the continuous improvement of user aesthetics, the creation of high-quality game products and immersive experiences will become key to breaking through the current growth bottleneck in the gaming industry. China's social/casual game revenue will increase from 85% of total video game revenue in 2024 to 87% in 2029.
Driven by technological innovation and deepening cross-sector integration, China's gaming industry is gradually strengthening its voice in global cultural trade, offering broad potential for development. "Black Myth: Wukong," with its high-quality storytelling and production, has broken the mold of Chinese games relying on the domestic market, garnering global attention and driving growth in the PC and console gaming segments. With its growing popularity in overseas markets, Chinese gaming products have enormous potential in the overseas market, seeking new profit channels and expected to continue to grow.
OTT video
From 2024 to 2029, China's smart TV market will continue to lead the world. Due to user preference for streaming content through smart TVs, the number of smart TV households is projected to grow from 304 million to 324 million, nearly three times the size of the second-largest market, the United States, solidifying China's position as the world's most popular smart TV market. By 2029, China's smart TV penetration rate is expected to reach nearly 57%, significantly higher than the global average of approximately 48%.
During the same period, despite slower overall growth in China's OTT market, its vast user base holds significant revenue growth potential. The number of OTT subscriptions is projected to increase from 399 million in 2024 to 419 million in 2029, with approximately 19.54 million new subscriptions. The evolution of technologies like AIGC is driving continued growth in the OTT video industry. China's OTT video revenue is projected to grow at a compound annual growth rate of 3.0% from 2024 to 2029.
PwC China Entertainment and Media Partner, Huang Zhiyang, said, "Our insights reveal that in recent years, people of different age groups have developed distinct approaches and habits in consuming electronic and media products and services. These differences in user habits are giving rise to new value chains and driving forces. Encouraging consumers to invest more of their discretionary income in electronic products and devices will be a challenge that the entertainment and media industry must address to maintain continued growth."
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