PUBLISHER: The Business Research Company | PRODUCT CODE: 1811112
PUBLISHER: The Business Research Company | PRODUCT CODE: 1811112
Online entertainment encompasses digital content and activities accessed over the internet, including streaming services, social media, online gaming, and virtual events. It offers a range of interactive and on-demand experiences available through computers, smartphones, and other connected devices. This sector has expanded rapidly due to technological advancements and increased internet access.
The main forms of online entertainment include video, audio, games, internet radio, and other formats. Video entertainment involves streaming movies, TV shows, live broadcasts, and video clips online. Devices used for accessing online entertainment include smartphones, smart TVs, projectors and monitors, laptops, desktops, tablets, and other connected devices. Revenue models in this sector vary and include subscription-based, advertisement-supported, sponsorship-driven, and other models. Applications of online entertainment cater to individuals, families, and other groups.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
The rapid surge in U.S. tariffs and the resulting trade tensions in spring 2025 are heavily affecting the media sector, particularly in areas such as content creation, broadcasting, and digital streaming. Increased tariffs on imported audiovisual gear, editing tools, and broadcasting technologies have driven up both production and operational costs for media companies. Film and TV studios are incurring higher expenses for sourcing foreign-made cameras, lighting, and post-production equipment, while news and broadcast outlets are facing steeper costs for satellite services and transmission hardware. Additionally, retaliatory tariffs imposed by other countries are hindering the export of U.S.-based media content, curbing international revenue growth. To navigate these challenges, media firms are increasingly sourcing domestically, accelerating digital transformation, and adopting AI-powered production tools to reduce costs and sustain their global competitiveness amid ongoing trade disruptions.
The online entertainment market research report is one of a series of new reports from The Business Research Company that provides online entertainment market statistics, including online entertainment industry global market size, regional shares, competitors with a online entertainment market share, detailed online entertainment market segments, market trends and opportunities, and any further data you may need to thrive in the online entertainment industry. This online entertainment market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The online entertainment market size has grown rapidly in recent years. It will grow from $387 billion in 2024 to $443.82 billion in 2025 at a compound annual growth rate (CAGR) of 14.7%. The growth in the historic period can be attributed to rising internet penetration, advancements in technology, the rise of social media, digital content creation, and subscription services.
The online entertainment market size is expected to see rapid growth in the next few years. It will grow to $768.62 billion in 2029 at a compound annual growth rate (CAGR) of 14.7%. The growth in the forecast period can be attributed to rising smartphone adoption, changing consumer preferences, increased investment in original content, and growth in gaming and e-sports. Major trends in the forecast period include increasing subscription-based services, growth of video streaming, expansion of eSports, virtual and augmented reality (VR/AR), and social media integration.
The forecast of 14.7% growth over the next five years reflects a slight reduction of 0.1% from the previous projection. This reduction is primarily due to the impact of tariffs between the US and other countries. Online entertainment providers may face slower innovation if tariffs affect the cost of graphics cards, servers, and cloud gaming chips. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.
The growing internet penetration among consumers is expected to drive the expansion of the online entertainment market. Internet penetration refers to the percentage of the population in a specific geographic area (such as a country or region) that has access to and uses the internet. This penetration is increasing due to the rising affordability of internet-enabled devices and the broader availability of high-speed internet infrastructure. Greater internet penetration enhances access to online entertainment by expanding the reach of audiences and enabling seamless content consumption across various platforms. For example, in February 2023, Meltwater, a Netherlands-based software company, reported that the number of internet users in the UK grew by 224 thousand (0.3 percent) from 2022 to 2023. As a result, the increasing internet penetration among consumers is driving the growth of the online entertainment market.
Key players in the online entertainment market are concentrating on developing technologically advanced solutions, such as cloud gaming, to provide a seamless and scalable gaming experience. Cloud gaming allows users to stream and play video games on various devices without the need for high-end hardware, by using remote servers to process the games. For example, in March 2023, GTPL Hathway Limited, an India-based telecommunications company, introduced GTPL Buzz. This customer application aims to enhance the user experience by offering a range of services. It includes features like "TV Everywhere," allowing users to watch live TV on their mobile devices, "Cloud Gaming" with the launch of Blacknut Cloud Gaming, and "Distro TV," which streams content in multiple languages. Available on both Android and iOS, the app enables users to manage their accounts, update services, and enjoy uninterrupted access to entertainment. Furthermore, it integrates GTPL's AI-powered chatbot, GIVA, to enhance customer support. The app is designed to increase the convenience and flexibility of GTPL's services for its broad customer base.
In January 2022, MarketCast, a US-based media company, acquired Invoke for an undisclosed amount. This acquisition enables MarketCast to extend its media and entertainment research capabilities to include audience testing for pre-release streaming and broadcast content, such as series concepts and episodes. Invoke, based in France, offers an online platform for entertainment companies to conduct real-time audience research and content testing for streaming and television shows.
Major companies operating in the online entertainment market are Tencent Video, Netflix Inc., Paramount+, Spotify AB, Hulu, TikTok Pte. Ltd., Disney+, Apple Music, HBO Max, Amazon Prime Video, iQIYI, Bilibili, Roku Inc., Pandora Media LLC, DAZN, Deezer, Crunchyroll LLC, Twitch, Sling TV, Peacock, SoundCloud, Vevo LLC, Tidal, Vudu, Sony Crackle
North America was the largest region in the online entertainment market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the online entertainment market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the online entertainment market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The online entertainment market consists of revenues earned by entities by providing services such as streaming services, video-on-demand, music streaming services, and spoken-word entertainment services. The market value includes the value of related goods sold by the service provider or included within the service offering. The online entertainment market also includes sales of streaming devices, home assistants, bluetooth speakers, and gaming monitors. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Online Entertainment Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on online entertainment market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for online entertainment ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The online entertainment market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.