Online Entertainment Market Size, Share & Industry Analysis, By Form (Video, Audio, Games, and Others), By Device (TV, Smartphones/Mobile Phones, Desktop/Laptop, and Others), and Regional Forecast, 2024-2032

The global online entertainment market size was valued at USD 90.23 billion in 2023. The market is projected to grow from USD 99.98 billion in 2024 to USD 261.23 billion by 2032, exhibiting a CAGR of 12.76% during the forecast period.

Live television shows and movie streaming provide relaxation, excitement, and pleasure to the viewers. Online entertainment sites, including Amazon Prime Video & Web Services, Netflix, and others, develop and implement recommendation systems and Large Language Models (LLM)-based algorithms in their platform system designs to build viewers’ attention through personalized live streaming shows. In addition, these platforms are utilizing cutting-edge solutions to provide enhanced experience to viewers. For instance, Jili Online Gaming, a Cambodian licensed casino software provider, is using cutting-edge Virtual Reality (VR) and Augmented Reality (AR) technologies to take gamers into the vibrant, interactive world, and provide interactive gaming experience to the users.

During the COVID-19 pandemic, outdoor travel restrictions encouraged consumers to perform indoor leisure activities such as video gaming, television watching, physical exercising, and others. This aspect resulted in higher consumer spending on video gaming subscription services, accelerating the online entertainment industry growth during the pandemic.

Online Entertainment Market Trends

Advent of Over-the-top (OTT) Platforms to Create Newer Market Growth Avenues 

Over-the-top (OTT) platforms offer an extensive array of digital content, ranging from documentary movies to TV shows. The increasing number of OTT platforms offering on-demand video streaming services and the rising number of OTT subscribers positively contributes to the growth of the market during the forecast period. Netflix, a global OTT platform, reported an 11.47% increase in the number of its OTT subscribers and reached 210.78 billion by 2021.

Online Entertainment Market Growth Factors

Rising Adoption of Smart Home Devices to Drive Market Growth

The rising adoption of smart home devices such as TVs, smartphones, podcasting devices, smart TVs, projectors, and monitors, is slated to increase consumer spending on digital entertainment-related subscription services, accelerating the online entertainment market growth. From 2017 to 2023, Samsung Electronics Co. Ltd., a global consumer electronics manufacturer, sold 40 million units of its QLED TV lineup of products worldwide. In 2023 alone, the company sold 8.31 million units globally.

Increasing Digital Media-related Advertising Spending to Favor Services Demand

Rising digital platforms’ spending on the growing number of digital advertising and marketing campaigns on the social media platforms is slated to increase consumer awareness about interactive online entertainment platforms, driving the service demand across many countries worldwide. Furthermore, shifting consumers’ preference from traditional print media to digital media, including video, audio, and documentary, favor global market growth. Nintendo Co. Ltd., a Japanese video gaming products and services provider, reported a 1.22% increase in its advertisement spending and reached USD 714.10 million in the financial year ending 31^st March 2023.

RESTRAINING FACTORS

Higher Services’ Subscription Costs May Limit Market Growth

The higher prices of OTT subscription plans and online games limit their demand among middle-income household consumers. Furthermore, the higher cost of in-game modules and increasing incidences of gaming addiction and related health consequences may restrain product demand among consumers worldwide.

Online Entertainment Market Segmentation Analysis

By Form Analysis

Higher Spending on In-app Gaming Purchases Result Games Segment to Lead Market

By form, the market is divided into video, audio, games, and others. Increasing internet penetration and growing screen-time of the users drive the revenue of these market segments.

The games segment is slated to grow at the fastest rate during 2024-2032. Higher consumer spending on in-app gaming purchases, pay-per-downloads, and gaming subscription services resulted in the games segment exhibiting a major online entertainment market share in 2023. Furthermore, the growing number of group plays to discover critical roles of the newer online games accelerates segmental growth.

The video segment is anticipated to be the second fastest growing segment during 2024-2032. Increasing consumer spending on video-on-demand subscription services to watch traditional and newer films, television shows, and documentaries drives the growth of the online entertainment-related video segment.

The audio segment is expected to be the third fastest growing segment during 2024-2032. Rising demand for live documentary audio clips and increasing consumer spending on live music streaming services accelerate segmental growth.

The others segment will grow at a slower rate than other segments during the forecast period. Growing awareness of the diverse entertainment forms, including internet radio and digital publishing, drives others’ segmental revenue.

By Device Analysis

TV Segment Dominates Due to Significant Spending on TV Online Streaming Services

By device, the market is subdivided into TV, smartphones/mobile phones, desktop/laptop, and others.

The TV segment dominated the market due to the higher consumer spending on online streaming services for television. Furthermore, the rising adoption of smart TVs among higher-income households favors the TV segment’s growth.

The smartphone/mobile phones segment is slated to grow at a considerable rate from 2024 to 2032. The increasing consumer spending on multiplayer mobile games mainly drives smartphone/mobile phones segmental revenues.

The desktop/laptop segment will grow at the fastest rate during 2024-2032. This is due to the rising consumer demand for high-performing, ergonomically designed gaming laptops across many countries globally.

The others segment covers the analysis of various online entertainment devices, including projectors, monitors, and podcasting devices. The segment will grow at a slower rate during 2024-2032. The broadening consumer entertainment needs and advancements in the development of projectors and podcasting devices favor segmental growth.

REGIONAL INSIGHTS

Based on region, the global market for online entertainment is segregated into North America, Europe, Asia Pacific, South America, and the Middle East & Africa. 

In 2023, North America was valued at USD 41.17 billion in 2023 and exhibited a major market share. Increasing subscription-based video viewership rates in Canada and the U.S. drive the regional market’s growth. According to the Motion Pictures Organization, the average time spent on subscription videos in the U.S. increased from 36.7 minutes/day in 2017 to 79.8 minutes/day in 2021. In addition, the increasing popularity of online casino gaming among youngsters drives the service demand in Mexico and Canada. 

Asia Pacific’s market will grow at the fastest rate during 2024-2032. Increasing Indian and Chinese consumer preference for watching cultural entertainment-related TV shows and videos creates newer market growth opportunities in the region. The growing craze of South Korean dramas among South Korean and other Asian youngsters favors regional growth.

Europe’s market expansion is led by the rising demand for ad-supported subscription plans and continual online platforms’ introduction. These platforms provide affordable plans to support the services revenue in Germany, the U.K., and Italy. For instance, in November 2022, Netflix updated its ad-supported subscription plans in the U.K. Disney+ followed suit and is also planning to introduce ad-tier plans across the U.K., Germany, Italy, Spain, France, and the Nordics.

The increasing number of internet users and growing awareness of the various digital entertainment platforms, such as Shahid, OSN, BluTV, and others, drive the Middle East & Africa market growth. According to the World Bank Group, internet users as a percentage of the total population in the Middle East and North Africa increased from 73% in 2020 to 77% in 2021.

Rising smartphone adoption rates in Brazil, Colombia, and Chile drive consumer spending on digital entertainment services in South America. According to the Global Systems for Mobile Communication (GSMA), the smartphone adoption rate as a percentage of the total population in Colombia increased from 63% in 2020 to 67% in 2021. The adoption rate is projected to increase up to 82% by 2025.

KEY INDUSTRY PLAYERS

Companies Focus on Retail Footprint Expansion to Gain a Competitive Edge

The leading market players, such as Netflix, The Walt Disney Company, Sony Group Corporation, and others, focus on establishing partnerships with technology solution providers to enhance customers’ entertainment experience and strengthen services product portfolio. For instance, in September 2023, Netflix established a partnership agreement with SK Telecom and SK Broadband to provide affordable subscription plans and personalized entertainment content selection options to South Korean customers.

List of Top Online Entertainment Companies:

• Netflix (U.S.)


• The Walt Disney Company (U.S.)


• Comcast Corporation (U.S.)


• Sony Group Corporation (Japan)


• Nintendo Co., Ltd. (Japan)


• Electronic Arts Inc. (U.S.)


• Spotify (Sweden)


• NetEase, Inc. (China)


• Universal Music Group (Netherlands)


• Amazon.com, Inc. (U.S.)


• Flutter Entertainment plc. (Ireland)


• Tencent (China)

KEY INDUSTRY DEVELOPMENTS:

• June 2024: Inspired Entertainment, Inc., a B2B provider of gaming content, technology, hardware, and services, announced a long-term partnership agreement with William Hill, an iconic sports betting and gaming brand. The move would provide fully integrated managed services with intellectual property rights to the U.K. gaming terminals. These services include the provision of installation, field technology support, and content & platform deployment support.


• May 2024: Paramount Global established a partnership with Amazon.com Inc. to strengthen its media streaming services worldwide.


• April 2024: Billboard, an American music and entertainment magazine, established a partnership with Kakao Entertainment to expand the influence of K-pop shows globally.


• March 2023: Kakao Entertainment announced a new partnership with Columbia Records, a subsidiary of Sony Music.


• December 2021: Eros Now, an over-the-top (OTT) entertainment platform, established a partnership with Global Networks Infocom to increase its reach of movie libraries in India.

REPORT COVERAGE

The report analyzes the market in-depth and highlights crucial aspects, such as prominent companies, service forms, revenue models, and entertainment devices market analysis-related areas. Besides this, the report provides key trends and the competitive landscape and highlights significant industry developments. In addition to the aspects mentioned earlier, the digital entertainment market report encompasses several factors contributing to the market growth.

Report Scope & Segmentation