Online Entertainment Market

Global Online Entertainment Market Size (2024 to 2032)

The global online entertainment market size was valued at USD 22.40 billion in 2023, and the global market size is anticipated to reach USD 138.14 billion by 2032 from USD 27.42 billion in 2024.The market's promising CAGR for the predicted period is 22.40%.

The rise in Internet penetration and the increase in the adoption of smart devices such as smartphones, smart TVs and laptops have increased the number of Internet users who have switched their preference for online entertainment. AI is one of the most transformative technology solutions of recent years, AI has been used in many ways to improve the customer experience and streamline business operations and this will continue in the coming years. Media companies will continue to work alongside AIs to get personalized content recommendations and effective ads. Using artificial intelligence and data based on user behavior patterns, media companies can customize which ads to show to capture user interests. While the scope of this has been for larger groups in the past, it will target more specific buyer personalities and ultimately target individuals.

MARKET DRIVERS

Currently, online social media entertainment has grown in popularity as more and more people engage in video, music, and image production on various social media platforms such as Instagram, Facebook, Tumblr, LinkedIn and WhatsApp. Therefore, an increase in the popularity of social media platforms is supposed to drive the growth of the online entertainment market during the forecast period.

The global online entertainment market is likely to undergo drastic changes during the forecast period due to changing consumer tastes and trends in the way they purchase and use content. The change in consumer behavior has allowed the entertainment industry to evolve at a rapid pace. The online entertainment market is expected to evolve dramatically with new innovations and ideas in response to a rapidly changing market. Mobile, home, filmed, in-flight and multimedia are some of the basic applications in this market. The growing consumer base and improvements in mobile technology are estimated to drive the mobile entertainment market. Cellular devices have become multimedia devices in the industry due to the increase in graphic content. The ability to watch TV shows, news and movies online has made the web domain a popular segment in the global marketplace.

The increase in smartphone users and the growing number of downloads for streaming applications are expected to have a positive impact on the growth of the online entertainment market. Technological advancements such as HD and 3D televisions, the presence of high-tech network infrastructure (4G/5G mobile network), and the availability of wireless broadband technology are expected to be the key drivers of the global entertainment market. E-books have become increasingly common and make up a considerable part of today's book sales. Electronics, exhibitions, live media, media and music are the key factors for the entertainment market. Live includes concerts, circus, comedy shows, musical theatre performances, sporting events, and performing arts. Examples of musical comedy include performances by concert halls and orchestras, as well as musicians, vocal artists, and composers. The exhibition includes trade shows, trade shows and amusement parks. The media is made up of the Internet, film, and broadcasting. Electronics is mainly made up of video games.

MARKET RESTRAINTS

Digital illiteracy and the absence of digital infrastructures such as digital communication, computing or data storage, Wi-Fi networks, applications and software are restraining the growth of the global online entertainment market.

REPORT COVERAGE

This research report on the global online entertainment market has been segmented and sub-segmented based on product, revenue model, device, and region.

Global Online Entertainment Market By Product

• Video
• Audio
• Games
• Internet radio
• Others

Based on product, the video segment led the market in 2023, accounting for 46.1% of the global market share and the domination of the segment is most likely to continue in the worldwide market throughout the forecast period. The growth of the video segment is majorly attributed to the increase in the use of digital media for advertisements and promotions of products and services. Digital advertising has gained popularity among businesses due to the various associated benefits such as real-time traceability, instant gratification, targeted and segmented audience, and profitability. Thus, the increase in digital media advertising contributes greatly to the growth of the online entertainment market. The growing popularity of streaming services such as Netflix, Amazon Prime, Disney+ and others is contributing to the growth of the video segment in the global market. For instance, Netflix has a base of more than 200 million subscribers worldwide.

The audio segment was the second largest segment in the global market in 2023 and held 27.2% of the worldwide market share. Factors such as the podcasting boom, rising popularity of music streaming services, the growing trend of audiobooks, increased smartphone usage and accessibility of streaming platforms are propelling the growth of the audio segment in the global market. An increasing effort from the leading audio streaming service providers to increase their customer base is contributing to the audio segment in the global market. For instance, Spotify has more than 350 million active users.

Global Online Entertainment Market By Revenue Model

• Subscription
• Advertising
• Sponsorship
• Others

Based on revenue model, the subscription segment dominated the market, accounting for 59.7% of the global market in 2023 and the domination of the segment will continue during the forecast period. The subscription income model is the method of making money or charging customers a recurring monthly or annual fee. Most of the popular online entertainment companies such as Netflix and Spotify have built successful businesses by taking advantage of subscription growth potential. The subscription revenue model is expected to gain popularity with online businesses over the forecast period, due to associated benefits such as predictable revenue, higher return on customer acquisition costs, and a great opportunity for upselling and crusades. The growing demand for exclusive content, convenience, and personalized entertainment experiences, rise of streaming services, original content production, and consumer preference for ad-free viewing are propelling the growth of the subscription segment in the global market.

The advertising segment had 22.7% of the global market share in 2023 and is estimated to showcase a healthy CAGR during the forecast period.

Global Online Entertainment Market By Devices

• Smartphones
• Smart TVs
• Projectors
• Monitors
• Laptops
• Desktop
• Computers
• Tablets
• Others

Based on devices, the smart TVs segment is a promising segment in the global market and accounting for 37.4% of the worldwide market share and is estimated to grow at a CAGR of 22.3% during the forecast period. Advances in display technology and the growing capabilities of smart TVs are fuelling the demand for smart TVs, which in turn is driving the growth of the smart TV segment in the global online entertainment market. Some of the advanced features of smart TVs are the fast user interface, video streaming services, universal search, and the app store. Smart TV's universal search function makes it easy to browse the Internet. Additionally, Miracast technology in smart TVs enables users to connect smartphones to smart TVs, which has gained immense popularity and is anticipated to increase the demand for online entertainment content.

The smartphone segment dominated the market, holding 41.7% of the worldwide market share in 2023 and the domination of the smartphone segment in the global market is estimated to continue throughout the forecast period.

Global Online Entertainment Market By Region

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

North America was the biggest regional segment in the global market and accounted for 40.9% of the global market share in 2023.

The lead of the North American region in the global market is expected to continue during the forecast period. The growth of the North American market is primarily driven by the high availability of advanced digital infrastructure with digital literacy, as well as the presence of a significant number of Internet service providers in the North American region. Factors such as high internet penetration, tech-savvy population, the presence of several entertainment industry players, rising popularity of streaming services, and increased adoption of online gaming are further contributing to the North American market growth. The U.S. is likely to hold the major share of the North American market during the forecast period. The U.S. has 85% of the digital video penetration.

Europe stood next in line with 24.7% of the global market share in 2023.

It is anticipated to register prominent growth during the forecast period. The growing consumption of online entertainment, the boom of online gaming and the rise of OTT platforms in Europe are primarily propelling the European market growth. The growing popularity of European streaming platforms such as Disney+ and BBC iPlayer is favoring the growth of the Europe online entertainment market. The UK is expected to account for the majority of the share of the European market during the forecast period.

The Asia-Pacific is expected to register the highest CAGR during the forecast period.

Factors such as the increasing penetration of the internet and smartphones and the rapid growth of digitization in the media and entertainment industry would create lucrative growth prospects for the online entertainment market in the Asia-Pacific region. China is predicted to lead the online entertainment market in the Asia-Pacific region during the forecast period owing to the rising adoption of mobile gaming. The Indian online entertainment market is estimated to grow at a healthy growth rate during the forecast period due to the success of Indian OTT platforms like Hotstar. South Korea is estimated to hold a considerable share of the APAC market during the forecast period. The growth of K-dramas in South Korea is one of the major factors supporting the South Korean market growth.

KEY MARKET PLAYERS

Amazon Web Services, Netflix, Inc., Google LLC, Facebook, Tencent Holdings. Ltd., Sony Corp, King Digital Entertainment Ltd., Spotify Technology S.A., Rakuten Inc. and CBS Corporation are some of the notable companies in the global online entertainment market.