Digital Media & Entertainment Market – Global Industry Size, Share, Trends, Opportunity and Forecast, By Type (Audio, Video, Text, Images, Others), By Platform (Smartphone, Television, Computer & Tablets, Others), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 18.92 Billion
CAGR (2026-2031)	7.51%
Fastest Growing Segment	Audio
Largest Market	North America
Market Size (2031)	USD 29.22 Billion

Market Overview

The Global Digital Media & Entertainment Market will grow from USD 18.92 Billion in 2025 to USD 29.22 Billion by 2031 at a 7.51% CAGR. Digital media and entertainment comprises content delivered through electronic networks, encompassing video streaming, digital audio, online gaming, and digital publishing. The market is primarily propelled by the global expansion of high-speed internet infrastructure and the widespread adoption of smart devices, which facilitate seamless access to on-demand content. Additionally, the transition from traditional ownership to subscription-based consumption models supports sustained industry growth, as consumers increasingly prioritize flexibility and vast content libraries over physical media formats.

A significant challenge impeding market expansion is the persistent threat of digital piracy and intellectual property theft, which erode revenue streams and discourage investment in premium production. Consequently, content creators must navigate complex regulatory environments to protect their assets while maintaining accessibility. Despite these hurdles, legitimate digital channels continue to drive the sector's financial performance. According to the International Federation of the Phonographic Industry, in 2025, global recorded music revenues reached $29.6 billion in 2024, with streaming services contributing 69.0% of this total.

Key Market Drivers

The surge in Subscription-Based Over-the-Top (OTT) Streaming Services is fundamentally reshaping the market as consumers abandon traditional linear broadcasts for on-demand flexibility and premium original content. This migration is fueled by aggressive investment in exclusive libraries and the convenience of cross-device accessibility, which locks in long-term subscriber loyalty. Major platforms are successfully monetizing this shift through tiered pricing models and password-sharing crackdowns, significantly boosting user bases. For instance, according to Netflix, October 2024, in its 'Q3 2024 Earnings Report', the company added over five million new members to reach a total of 282.72 million global paid memberships. This digital engagement momentum extends beyond video to the audio sector, where streaming platforms see similar adoption rates; according to Spotify, November 2024, in its 'Q3 2024 Earnings Report', global monthly active users surged to 640 million, highlighting the widespread consumer reliance on digital entertainment ecosystems.

The accelerated shift of advertising expenditures to digital channels serves as the second critical driver, acting as the financial backbone for the industry's free and hybrid content models. Advertisers are increasingly reallocating budgets from traditional media to social, video, and retail media networks, drawn by the ability to utilize granular data for precision targeting and real-time performance measurement. This transition is further amplified by the growth of ad-supported streaming tiers, which offer brands access to premium environments previously behind paywalls. Reflecting this dominance, according to Dentsu, December 2024, in the 'Global Ad Spend Forecasts' report, total global advertising spend was projected to reach $772.4 billion in 2024, with digital channels capturing approximately 59.5% of the market share. This massive capital influx not only sustains platform operations but also incentivizes continuous technological innovation in content delivery.

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Key Market Challenges

The persistent threat of digital piracy and intellectual property theft serves as a critical impediment to the financial expansion of the Global Digital Media and Entertainment Market. This challenge directly hampers market growth by diverting substantial user traffic and potential revenue away from legitimate channels, effectively undermining the subscription-based models that drive industry profitability. When consumers access premium content through unauthorized means, it erodes the return on investment for high-quality productions and discourages stakeholders from financing expensive creative projects. The ease of access to illegal libraries creates a distorted competitive landscape where licensed providers must compete against free, infringing alternatives.

The magnitude of this issue creates a substantial drain on the digital economy and limits the total addressable market for authorized services. According to the Motion Picture Association, in 2025, the notorious piracy network Myflixerz attracted roughly 622 million visits in August alone, illustrating the massive volume of engagement lost to illicit platforms. This significant diversion of viewership deprives the market of critical subscription and advertising income needed to sustain long-term development.

Key Market Trends

Mainstream Adoption of Generative AI for Automated Content Production is revolutionizing the industry by streamlining workflows and reducing production costs across gaming and video sectors. Studios and developers are increasingly leveraging large language models and neural networks to automate labor-intensive tasks such as asset creation, coding, and scriptwriting, thereby accelerating time-to-market for complex digital properties. This technological integration allows creators to focus on high-value artistic innovation rather than manual processes, fundamentally altering resource allocation strategies. Highlighting this operational shift, according to Unity, March 2024, in the 'Unity Gaming Report 2024', 62% of surveyed studios reported turning to AI solutions specifically to improve their operational workflows, underscoring the widespread reliance on these tools to maintain economic viability in a competitive landscape.

Consolidation of Streaming Services via Aggregation and Bundling has emerged as a critical strategy to combat subscription fatigue and reduce churn rates in a fragmented marketplace. Media conglomerates are moving away from exclusivity-driven isolation towards strategic cross-platform partnerships, offering consumers unified access to diverse content libraries at discounted rates. This aggregation model not only enhances user retention by increasing the perceived value proposition but also expands total addressable audiences for partner platforms through integrated distribution channels. Validating the efficacy of this approach, according to Warner Bros. Discovery, November 2024, in the 'Third Quarter 2024 Earnings Results', the Direct-to-Consumer segment delivered 7.2 million net subscriber additions, a record growth spike significantly driven by the strategic bundling of its Max service with Charter Communications' linear and digital packages.

Segmental Insights

According to comprehensive industry research, the Audio segment is the fastest-growing category in the Global Digital Media & Entertainment Market. This expansion is primarily driven by the widespread adoption of subscription-based music streaming services and the significant rise in podcast consumption. Consumers are increasingly shifting toward on-demand, mobile-first audio content that accommodates multitasking and screen-free engagement. Additionally, enhanced accessibility through smartphones and data-driven personalization has strengthened listener retention. Consequently, media entities are increasing investment in digital audio infrastructure to align with these evolving consumption habits, establishing the segment as a primary contributor to overall market development.

Regional Insights

North America holds the leading position in the global digital media and entertainment market, supported by extensive high-speed internet infrastructure and high consumer adoption of digital services. The dominance of this region is largely attributed to the concentration of major industry players that drive content production and distribution standards. Furthermore, strong intellectual property frameworks, maintained by institutions like the United States Patent and Trademark Office, secure digital assets and encourage consistent investment in original programming. This stable environment facilitates the expansion of streaming and gaming sectors, cementing the region as a primary driver of global market activity.

Recent Developments

• In September 2024, Sony Interactive Entertainment announced the PlayStation 5 Pro, an upgraded version of its flagship gaming console featuring significant hardware and performance enhancements. The new device introduced a larger graphics processing unit, advanced ray tracing capabilities, and proprietary AI-driven upscaling technology to deliver higher fidelity graphics and smoother frame rates for players. This product launch aimed to elevate the gaming experience for enthusiasts and bridge the gap between performance modes and visual quality in the interactive entertainment sector. The console was positioned to support the evolving demands of next-generation game development and immersive digital media consumption.
• In July 2024, The Walt Disney Company and Warner Bros. Discovery launched a new bundled streaming offering in the United States, combining Disney+, Hulu, and Max into a single subscription plan. This strategic collaboration allowed consumers to access extensive libraries from both media giants, including content from HBO, Warner Bros., Marvel, and Pixar, at a discounted rate compared to purchasing standalone subscriptions. The initiative was designed to provide greater value to subscribers, drive user engagement, and reduce churn in the highly competitive global digital media and entertainment market, effectively challenging other major streaming competitors through consolidated service offerings.
• In February 2024, OpenAI unveiled Sora, a new generative artificial intelligence model capable of creating realistic and imaginative video scenes directly from text instructions. This breakthrough research in the digital media sector demonstrated the ability to generate high-definition videos up to one minute in length while maintaining exceptional visual quality and adherence to user prompts. The technology introduced capabilities for complex camera motions and detailed character emotions, signaling a major advancement in automated content creation tools. This development highlighted the increasing role of artificial intelligence in reshaping the production landscape of the global entertainment industry.
• In January 2024, Netflix and TKO Group Holdings announced a long-term partnership to bring Raw to the streaming service, marking a significant shift of live wrestling content from linear television to digital platforms. The agreement, valued at over $5 billion, granted the streaming giant exclusive rights to broadcast the weekly program in the United States, Canada, the United Kingdom, and Latin America starting in early 2025. This strategic collaboration underscored the growing importance of live sports entertainment within the digital media market and aimed to substantially expand the global reach and monetization of the wrestling franchise's extensive content library.

Key Market Players

• Comcast Corporation
• Warner Digital Media Design LLC
• The Walt Disney Company
• Spotify AB
• iHeartMedia, Inc
• SiriusXM Media
• Netflix Inc
• Amazon.com, Inc.
• Apple Inc
• NBC Universal

By Type	By Platform	By Region
Audio Video Text Images Others	Smartphone Television Computer & Tablets Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Digital Media & Entertainment Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Digital Media & Entertainment Market, By Type:

• Audio
• Video
• Text
• Images
• Others

• Digital Media & Entertainment Market, By Platform:

• Smartphone
• Television
• Computer & Tablets
• Others

• Digital Media & Entertainment Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE