Global Online Entertainment Market Size, Share, Growth: By Form: Video, Audio, Games, Others; By Revenue Model: Subscription, Advertisement, Sponsorship, Others; By Device: Smartphones, Smart TVs, Projectors, and Monitors, Others; Regional Analysis; Market Dynamics: SWOT Analysis; Competitive Landscape; 2024-2032

Global Online Entertainment Market Outlook

The global online entertainment market size was valued at USD 419.87 billion in 2023. The market is further projected to grow at a CAGR of 19.30% between 2024 and 2032, reaching a value of USD 2048.33 billion by 2032.

Key Takeaways

• In the U.S. in 2023, 96% of millennials engaged in gaming for 13 hours weekly.

• In the UK, 95% of millennials gamed for 12 hours weekly in 2023.

• Television advertising revenue is forecast to grow by about 0.3% by 2023.

• As of 2022, Netflix had a massive user base of 225 million globally.

Online entertainment is a broad term that refers to any form of entertainment that is delivered through the internet. It can include various types of media, such as video, audio, games, social media, e-books, podcasts, and live streaming. Online entertainment can be accessed through different devices, such as smartphones, laptops, smart TVs, tablets, and gaming consoles.

The online entertainment market is experiencing rapid growth due to several factors. These include the increasing availability and affordability of high-speed internet and mobile data, the rising demand for personalised, interactive, and on-demand content, the emergence of new platforms, services, and formats catering to diverse tastes and preferences, the growing popularity of online gaming, esports, and live streaming among younger generations, and the shift in consumer behavior and preferences due to the COVID-19 pandemic and lockdowns.

Moreover, the online entertainment market outlook has been positive as the industry has witnessed significant growth in North America, Europe, and Asia-Pacific due to advancements in internet-enabled devices and the increasing popularity of OTT services and online gaming.

Read more about this report - REQUEST FREE SAMPLE COPY IN PDF

Key Trends and Developments

Wide availability of streaming services, rising popularity of gaming form, and growing shift towards e-learning are boosting the market growth

Global Online Entertainment Market Trends

The online entertainment market is growing rapidly as more people consume digital content on various platforms and devices. The increasing use of smartphones and the availability of affordable internet access have resulted in online entertainment market expansion. Advancements in smartphone technology and an increase in the utility of smartphones are expected to create huge demand for smartphones. The increase in the size of smartphones and touchscreen displays has enhanced viewers' visual and listening experience. Thus, a surge in the use of smartphones is expected to fuel the online entertainment market growth during the forecast period.

The entertainment market is further driven by the decline in the cost of internet charges and technological advancements in smartphones, such as the introduction of mobile phones supporting 5G networks, folding smartphones, 3D-enabled mobile phones, and artificial intelligence and augmented reality-integrated phones. Furthermore, the fast adoption of internet-enabled smart gadgets, such as smart TVs, desktops, laptops, and smart projectors, has dramatically increased the demand for online entertainment as these gadgets offer various benefits to consumers, such as convenience, choice, flexibility, and affordability.

However, the market also faces certain challenges, such as piracy, privacy, security, regulation, and quality. Therefore, online entertainment companies need to constantly innovate and adapt to the changing needs and expectations of their audiences. Meanwhile, the rise in the digital transformation in the media and entertainment industry and increase in the expenditure on the digital advertisement will further create new opportunities in the forecast period.

Read more about this report - REQUEST FREE SAMPLE COPY IN PDF

Market Segmentation

Global Online Entertainment Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Video segment hold the largest online entertainment market share due to rising popularity of OTT platforms for watching movies and series

Based on form, the video segment accounts for the largest market share due to the increase in the use of digital media for advertisements and promotions of products and services. The surge in popularity of the video content through various social media platforms, such as YouTube, Instagram, and Facebook, is further driving the segment’s growth. Additionally, OTT media services are majorly contributing to the growth of the market, owing to the surge in popularity of OTT players, including Netflix, Hulu, Disney+, and Amazon Prime Video in countries such as India, China, and USA, among others.

Meanwhile, as per online entertainment market analysis, other forms, such as audio and games are also gaining traction. The key factors driving the growth of the audio segment are the rising adoption of smartphones, the expansion of music streaming services like Spotify, Apple Music, and Gaana, and the growing popularity of podcasts and audiobooks. The gaming segment is growing due to the rapid development of gaming technology, the emergence of cloud gaming and e-sports, and the increasing penetration of social media and mobile devices.

Subscription models holds a significant market share due to high demand for ad-free forms of online entertainment

Subscription segment leads the online entertainment market share owing to the increasing demand for premium content and exclusive features from online entertainment platforms. The subscription revenue model refers to the practice of charging users a periodic fee to access online entertainment content, such as streaming services, ad-free music, games, or e-books. This model offers a steady and predictable income stream for the content providers, as well as a high customer retention rate. The subscription segment is expected to maintain its dominance over the forecast period, as more consumers opt for subscription-based services that offer ad-free and uninterrupted access to various forms of online entertainment.

Meanwhile, advertisement revenue model refers to the practice of displaying ads to users while they consume online entertainment content, such as videos, music, podcasts, or games. This model allows the content providers to offer free or low-cost access to their content, while generating revenue from advertisers who want to reach their target audience. As per the online entertainment market report, the advertisement segment is projected to witness the fastest growth rate as online entertainment platforms leverage their large and diverse user base to generate revenue from targeted and personalised ads.

On the other hand, sponsorship revenue model refers to the practice of partnering with brands or organisations that sponsor online entertainment content, such as events, shows, influencers, or creators. This model allows the content providers to generate revenue from sponsors who want to enhance their brand awareness, image, or loyalty among the content consumers. Due to these factors, the sponsorship segment is expected to register a moderate growth rate, thereby increasing the demand for online entertainment. The segment is also influenced by the rising popularity of influencer marketing and live streaming, which offer lucrative opportunities for online entertainment platforms to monetise their content and reach new audiences.

Read more about this report - REQUEST FREE SAMPLE COPY IN PDF

Competitive Landscape

Market players are continuously developing new interfaces to meet the growing demand of consumers. They are also involved in collaborations and acquisitions to expand their global presence.

Other key players in the global online entertainment market include The Walt Disney Company, Spotify AB, and Tencent Holdings Ltd., among others.

Global Online Entertainment Market Analysis by Region

North America to dominate the market due to the rising availability of advanced digital infrastructure and expansion of gaming culture

North America is expected to dominate the market for online entertainment during the forecast period. The key factors driving the growth of the online entertainment market in the region include the rising availability of advanced digital infrastructure, a high rate of digital literacy, and increase in the popularity of online games. Further, over-the-top (OTT) media services have gained notable popularity in the region as they offer original and unique content, are convenient to use, and are compatible with smartphones.

In the region, United States dominates the online entertainment market share due to advancements in different aspects, such as graphics and experience. Moreover, the advent of cross-platform gaming has become highly beneficial for online gaming market players. Thus, the increase in popularity of the OTT media services and online gaming is expected to propel the United States online entertainment market.

Europe is the second-largest market for online entertainment as the region has a diverse and mature online entertainment landscape, with a mix of local and global players offering various types of content and services. The rising popularity of online gaming, esports, live streaming, podcasts, and online education are some of the key factors boosting the online entertainment market value in Europe.

However, Asia Pacific is the fastest-growing market for online entertainment, owing to the rapid expansion of the internet and mobile user base, especially in emerging countries such as China, India, Indonesia, and Vietnam. The region also has a large and growing young population, which is more inclined to consume online entertainment than traditional media. The emergence of regional and niche online entertainment platforms, such as iQiyi, Hotstar, Viu, and Joox, and the increasing investments by global players, such as Netflix, Amazon, and Disney, further increase the online entertainment market size in Asia Pacific.

Key Highlights of the Report

*At Expert Market Research, we strive to always give you current and accurate information. The numbers depicted in the description are indicative and may differ from the actual numbers in the final EMR report.