Online entertainment market seen reaching $1.5 trillion by 2035

A new Allied Market Research report projects the online entertainment market will grow from $284.8 billion in 2023 to $1,500.6 billion by 2035, driven by smartphones, affordable internet and rising demand for video, OTT and gaming content. The report says advertising remained the largest revenue model in 2023, with North America leading regional market share.

Why it matters: - The online entertainment market is on track for major expansion, which could reshape how media companies monetize video, audio, gaming and other digital content. - Growth in smartphones, broadband access and OTT use is expected to keep pushing more audiences toward internet-based entertainment.

What happened: - Allied Market Research said the online entertainment market was valued at $284.8 billion in 2023 and is projected to reach $1,500.6 billion by 2035. - The report pegs growth at a 15% CAGR from 2024 to 2035. - The study covers forms, revenue models, devices and regions. - The report is available through a sample PDF request.

The details: - Online entertainment includes content delivered over the internet through smartphones, smart TVs, laptops and tablets. - The report says rising smartphone adoption and more affordable internet are increasing online traffic and demand for videos, audio, games, web radio and e-books. - By form, video held the largest share in 2023 and is expected to stay in front through 2035. - Video demand is tied to the popularity of YouTube, Instagram and Facebook. - By revenue model, advertising led the market in 2023 and is expected to remain the largest segment during the forecast period. - The report also notes that subscription pricing can support customer retention, steady cash flow and easier distribution. - By device, smartphones led the market in 2023 and are expected to keep that lead. - Large-screen smartphones are supporting video streaming, music, internet browsing and HD gaming. - India’s smartphone sales rose to 231.5 million in 2022 from 102.4 million in 2016, according to the India Brand Equity Foundation. - By region, North America held the largest share in 2023 and is projected to remain dominant. - The report says North America’s lead reflects high-bandwidth access, digital literacy and adoption of new technologies. - The U.S. is the largest market in North America, helped by graphics and experience improvements and growing interest in cross-platform gaming. - The report identifies Amazon Web Services, Netflix, Google, Facebook, Tencent Holdings, Sony, King Digital Entertainment, Spotify, Rakuten and CBS Corporation as key players. - The report says these players are using product launches and business expansion to grow share and profitability.

Between the lines: - The report points to a market where advertising still drives much of the economics, even as subscription models remain important for recurring revenue. - OTT platforms and cross-platform gaming appear to be reinforcing each other as devices and content ecosystems converge. - Emerging markets such as India and China may offer outsized growth because of smartphone adoption and expanding internet access.

What's next: - The report expects video, advertising, smartphones and North America to stay in the lead through the forecast period. - Online content producers and distributors are likely to keep investing in analytics, targeting and device compatibility to improve monetization. - The report is also offered with a buy-now discount and an inquiry option.