Irish Entertainment & Media industry set to grow 2.9% annually to 2028 - says PwC’s latest Entertainment & Media Outlook 2024 - 2028

The Irish Entertainment & Media (E&M) industry is set to grow at an annual rate of 2.9% Compound Annual Growth Rate (CAGR) to 2028 reaching €7.6bn, up from €6.6bn in 2023, which is the base year for the Outlook. This growth is primarily fueled by increasing mobile internet services, continued growth in internet advertising and video on demand subscriptions.

Globally, the Entertainment & Media industry is expected to grow at 3.9% CAGR in the period. This boost will see the industry’s global revenues reach €3.1trn in 2028, up from €2.6trn in 2023.

This is according to PwC’s latest Global Entertainment & Media (E&M) Outlook 2024-2028, the 25th annual analysis and forecast of E&M spending by consumers and advertisers across 53 countries and territories. The Outlook includes Ireland’s E&M industry including sectors such as; connectivity services, internet advertising, music, radio and podcasts, cinema, newspapers, consumer magazines and books, out-of-home (OOH) advertising, Video on Demand (VOD), traditional TV, and video games.

Despite facing economic headwinds, technological disruption and increased geographic and industry competition, the Irish E&M industry has demonstrated resilience and growth in 2023. Total Irish revenues in 2023 rose 4.8% to €6.6 billion compared to 2022. However, the projected growth in the Irish market to 2028 (with a CAGR of 2.9%) lags the global forecast of 3.9% CAGR. This discrepancy is primarily due to the slower growth observed in the video gaming segment.

Speaking at the launch, Amy Ball, Partner, PwC Ireland Entertainment & Media Practice, said: “The Irish Entertainment & Media industry is set for robust growth to 2028. The industry in Ireland is showing  great success and opportunity on the global stage. Ireland has supported the industry over the years. For example, during 2024 we saw the cap on eligible spending on film projects raised from €70m to €125m and the Section 481 film tax credit was also extended to the end of 2028.” 

“As the global entertainment & media industry continues to grow, market players face both risks and opportunities. Shifts in consumer preferences, and uncertainty around the continued impact of digital transformation and new and emerging technology such as Generative AI, are inspiring a wave of business model reinvention. Leveraging the power of AI and Gen AI will be critical. If market players are to gain their share of the growing revenue pools that the report identifies, they will have to reimagine how their company creates, delivers, and captures value. As consumers increasingly consume content online, companies will also need to diversify their product-offerings and continue to connect with consumers on the platforms where they spend more of their time.”

The three key drivers for Ireland’s Entertainment & Media industry growth are: 

1. Mobile internet service revenue set to increase at a 3.2% CAGR reaching  €1.6bn by 2028 

Mobile internet service revenue is expected to increase at a 3.2% CAGR, from €1.4bn in 2023 reaching €1.6bn in 2028, while fixed broadband service revenue will show slower growth at a 0.6% CAGR, rising to €1.4bn in 2028 (global internet service revenue is expected to increase at a 3.4% CAGR in the period 2024-2028).   

5G will become the primary mobile access technology in 2025 and by 2028 it is expected to account for 82% of Ireland’s 10mn total mobile subscription base.

2. Internet Advertising revenues will increase at a 9.5% CAGR to reach €1.8bn by 2028. 

Internet advertising revenue in Ireland will increase at a 9.5% CAGR between 2024 and 2028, reaching  €1.8bn (Global CAGR: 9.5%). The fastest-growing market category is video advertising, which will see an increase of 11.5% CAGR over the forecast period to reach €185m by 2028.

Paid search advertising will also see strong growth, with an increase of 10.2% CAGR expected, while other display (traditional non-video ads) will see an increase of  7.8% CAGR. Paid search advertising is by far the biggest category in Internet Advertising revenue terms, making up just over 59.1% of total revenue, followed by other display (28.2%), video (9.2%) and classified (3.4%).

3. Ireland’s Video-On-Demand (VOD) market expects growth of 8.9% CAGR to produce revenues of €299m by 2028

Ireland’s VOD market has more than doubled in size since 2019, reaching total revenue of €196m in 2023. This was initially driven by the COVID-19 pandemic lockdowns, when households sought home entertainment, while new launches from major international players have also increased the tendency for people to “stack” several streaming services. This will fuel a further increase in Video-On-Demand revenue at a 8.9% CAGR to produce €299m by 2028 (Global CAGR: 7.4%). At this time, the Subscription Video-On-Demand (SVOD) segment will account for 88% of the total VOD market.

However, as streaming service usage and consumer uptake is rising, service-providers face increased competition and challenges in getting consumers to pay more for digital goods and services. Irish subscriptions to VOD services are expected to rise to 2.6 million in 2028 from 1.8 million in 2023 – representing a 7.7% CAGR (compared with 5% CAGR globally). The Irish average revenue per VOD subscription is expected to show slow growth of 1.7% CAGR over the forecast period, rising from €93.23 in 2023 to €101.64 in 2028. 

Globally, revenue per subscription growth is expected to plateau with average revenue per VOD subscription expected to rise slowly from €59.15 in 2023 to €61.57 in 2028. The report suggests that in developed markets, consolidation is taking place in the form of bundling subscription service providers.

Other areas of interest for Ireland:

1. Irish video gaming industry grows 3.2% CAGR reaching €545m by 2028 

Total video games revenue in Ireland reached €465m in 2023 and will exceed €545m by 2028, increasing at a 3.2% CAGR. This is below the global growth rate of 8% CAGR over the forecast period, but in line with Western Europe where the CAGR is 4.1%. In contrast with global trends, traditional gaming remains the largest sector in Ireland’s video games market. At €242m in 2023, traditional gaming generated 52% of Ireland’s total video games revenue. But Ireland’s traditional gaming sector is expected to begin shrinking in 2026, ultimately falling to €234m at a -0.7% CAGR. This is largely due to a sharp reduction in physical console games revenue, which will decrease at a -11.3% CAGR. By comparison, social and casual gaming is expected to grow steadily, rising from €198m in 2023 to €283m in 2028, at a 7.4% CAGR. Most of this revenue derives from the rapid growth of in-app games advertising revenue, which is expected to almost double from €59m in 2023 to €110m in 2028, an increase of 13.4% CAGR.

2. Ireland's Cinema Industry is forecasted to grow 5.6% CAGR to reach €145m by 2028. 

Ireland's Cinema Industry is forecasted to grow 5.6% CAGR over the forecast period, reaching €145m by 2028, compared with 6.3% CAGR globally. The number of cinema admissions in Ireland is expected to grow from 12 million in 2023 to 14.3 million in 2028, with a CAGR of 3.4%.

3. Ireland’s Live Music Revenue saw year on year growth of 23.5% in 2023

Ireland’s total music and radio revenue was worth €465m in 2023 and is forecast to rise at a 2.7% CAGR to total €530m by 2028 and compares to global CAGR of 2.6%. Ireland’s Music Revenue accounted for €354m in 2023, with 69% of that made up of live music revenue. Ireland’s live music revenue reached €243m in 2023, increasing 23.5% in 2023 over 2022, and is expected to grow at 2.8% CAGR to €279m in 2028, compared with 2.5% globally.

The report underscores the importance of in-person, real-life, tech-powered experiences such as live music and cinema as crucial growth industries. In 2023, movie box office and music ticket sales represented 38.6% of the net increase in consumer spending worldwide. Driven by large events such as musicians’ world tours, global live music revenues rose by 26%, accounting for more than half of the music market.

Businesses look to Generative AI (GenAI) to drive new revenue streams and transform business models

2023 saw GenAI explode into the public consciousness and start to filter into products that are used by hundreds of millions of users every day, specifically in Large Language Models and Image Generation. The PwC 2024 CEO Survey found that 63% of Irish CEOs expect GenAI to significantly change the way their company creates value in the next three years.

The question remains as to how will GenAI translate into higher revenues and help companies accelerate their pursuit of revenue pools. One high-potential area lies in the highest-growth sector: advertising. GenAI is increasingly being integrated into content creation and advertising tools. Here its application has tended to focus initially on extracting small pieces of information and generating summaries in sub sectors such as sports media. 

Additionally in Media Production, AI generated content is rapidly replacing stock media used in low-budget video production. Generative AI can provide supporting images and videos, and can enhance artificial narrators with more realistic voices, as well as powering avatars that present videos. 

Conor Forde, Director, PwC Ireland Entertainment & Media Practice, concluded: “The global entertainment & media industry has always thrived on technological disruption and Ireland is no different. To capitalise on the many growth opportunities, the industry must leverage the power of new and emerging technologies such as Generative AI, re-shape business and creative models and leverage the technology for advertising. So far, many of the applications of Gen AI in the E&M industry have focused on speed and efficiency. As we look ahead, the industry will have to focus on how GenAI can lead to greater value creation in a safe and secure way and in compliance with the new EU AI Act through experimenting, iterating, and scaling new solutions and processes.”

Ends

About the Outlook

PwC’s Global Entertainment & Media Outlook 2024-28, now in its 25th year, provides in-depth analysis of global entertainment & media (E&M) consumer and advertising spending. The Outlook includes five-year historical and five-year forecast data and commentary for 11 industry segments across 53 countries and territories including Ireland. Segments are business-to-business; cinema; connectivity service; internet advertising; music, radio and podcasts; newspapers, consumer magazines and books; out-of-home (OOH) advertising; over-the-top (OTT) video; traditional TV; video games and esports; virtual reality (VR) and augmented reality (AR). In addition, the Outlook tracks data consumption and important developments in technologies such as AI, Metaverse and NFTs. The full Outlook can be accessed at www.pwc.com/outlook.