Media and Entertainment - Industry - North America Market, Share and Trends 2023-2028

Summary of Media and Entertainment

The North American media and entertainment industry was valued at over $ 682 billion in 2023, making it the 2^nd largest regional market globally. The United States accounts for over 85% of regional revenues that is driven by strong demand for video games, filmed entertainment, music, television programming and digital media/advertising.

The U.S. Media and Entertainment (M&E) industry is also known to be the largest in the world. At around $680 billion— it represents one-third of the global Media & Entertainment industry— including various segments: motion pictures, television programs and commercials, streaming content, music and audio recordings, broadcast, radio, book publishing, video games and ancillary services and products.

Streaming video has seen explosive growth in recent years with over 80% of US households now subscribed to at least one streaming service like— Netflix, Disney+, Hulu etc. Traditional pay-TV continues declining amidst cord-cutting while connected TV advertising is rising rapidly given improved targeting capabilities.

Esports and interactive gaming are also emerging as major growth areas – especially on mobile platforms – with over 2.7 billion gamers worldwide and revenues exceeding USD 150 billion annually global. The industry is transforming with consolidation of traditional media companies and entry of tech giants bringing new distribution models and monetization opportunities.

Recent Trends and Insights

Competition between streaming platforms for exclusive content and subscribers has intensified with major studios and tech firms entering the fray. Declining pay-TV subscriptions have accelerated as viewers shift to on-demand streaming options. Cable TV losses have exceeded 15 million since 2010.

Advanced advertising on streaming platforms and smart TVs is growing rapidly given improved targeting and measurement capabilities. Esports revenues have grown over 15% annually to exceed USD 1 billion in the US alone in 2021. Mobile gaming also drives significant monetization.

Emerging technologies like: virtual production, augmented reality and virtual/mixed reality are transforming content creation and experiences across – film, TV and gaming.

Short-form video platforms like: YouTube, TikTok, Instagram have become major distribution channels and revenue streams for media companies and creators. Podcasting advertising revenues have grown over 25% annually with major networks investing heavily in exclusive shows and partnerships.

The U.S. industry is going through a type of transition with both traditional and new models working hand-in-hand across multiple devices and platforms and the market is expected to further grow in the upcoming years. Digitisation as well as globalisation of services have further fostered a revolution in the US Media and Entertainment industry.

Integration of new OTT services across the already existing subscription-based streaming devices among the US household is expected to drive the media & entertainment sector across the region.

Product Insights

The US streaming market was valued at over USD 60 billion in 2021 and is projected to grow over 12% annually through 2027. Key players include Netflix, Disney+, Hulu, Amazon Prime Video, HBO Max, Peacock etc. Facebook, YouTube, Instagram, Snapchat, TikTok dominate the USD 150 billion US digital/social media advertising market across various video, mobile and social platforms.

The US gaming market was worth over USD 50 billion in 2021 and is growing rapidly across mobile, console, PC and esports. Major publishers are: Activision Blizzard, EA, Take-Two Interactive, Zynga, Nintendo etc.

While recorded music revenues grow steadily, live music has rebounded strongly post-pandemic and is a major driver of the USD 25 billion US music industry. Podcasting revenues have grown over 25% annually to exceed USD 1 billion with major networks and studios investing heavily in exclusive shows.

For instance – Comcast added Amazon Prime Video to the online content available through its service thereby enhancing the application of the OTT media– which already included streaming services such as Netflix, YouTube and Pandora.

Media houses are evaluating their options to diversify concession options, offer consumer products such as: movie or brand related merchandise and offer membership discounts to attract viewership. Netflix is estimated to capture around 74% of the total penetration of US OTT households, followed by Youtube with 54% and Amazon by 33% penetration.

Key Companies

Some major players within this vast domain of industry are

• Comcast
• The Walt Disney Company
• Netflix
• Paramount Global
• Warner Bros. Discovery
• Live Nation
• Viacom
• Vivendi
• Lagardère
• Bertelsmann SE & Co. KGaA

Regional Analysis

The massive US market is undergoing a transformation with streaming wars, discountinuation of standard cable media and the wake of virtual production & social video. All sub-sectors present significant opportunities. Canada has a developed media market with strong demand for video games, streaming services and live entertainment. Regulations support local content production.

Mexico has a growing middle class driving demand for media and entertainment. Digital platforms are helping expand access across the country.  Many of the prominent motion picture studios are part of significant media conglomerates that often include: television, video and streaming services, music services, newspaper, cable and magazine segments.

The media and entertainment industry offers worthwhile opportunities for international companies – both large and small – and provides advanced film production resources and technologies. With the shift towards a digital mode of production and distribution, foreign firms are continually seeking out U.S. digital and animation expertise and new formats.

Disney – which is now a diversified global entertainment company – that operates theme parks, resorts, cruise lines and broadcast television networks. The company’s most recent addition is the entertainment streaming service, Disney+, which launched in 2019, and saw over 235 million subscribers in 2022.

Market Segmentation

By Type:

• Film & Music
• TV & Video
• Publishing
• Radio
• Video Games

By End User:

• Residential: SVOD, Pay TV, Online Streaming
• Commercial: Digital Signage, Cinema Advertising
• Institutional: Academic Media, Corporate Communications

By Enterprise Size:

• Large Industries
• Small & Medium Industries

By Country:

• The U.S.
• Canada
• Mexico

Our Methodology

We have offered a well-founded review of the North American regional media and entertainment Industry market along with ongoing trends and upcoming projections to highlight proximate investment opportunities in this report. Moreover, an extensive analysis of any future prospects, challenges, competitors, or navigating aspects is also provided. A methodical detailed regional examination is presented.

Primary Research  

Our multi-pronged research approach includes interviews with industry leaders and a global survey of advanced manufacturing professionals to gain qualitative insights. We utilize our proprietary databases encompassing key performance indicators worldwide in order to collate relevant data points. A multivariate forecasting framework considering historical performance, current dynamics and qualitative factors are utilized to develop market sizing and growth projections through 2029.

We supplement our primary research with a careful examination of secondary materials such as– case studies, news stories and references from other sources. Organizations can benefit from the strategic advice and conclusions offered because they will be better equipped to respond to the dynamic nature of this industry and seize emerging possibilities.

We employ a comprehensive and iterative research methodology focused on minimizing deviation to provide the most accurate market estimates. Our research utilizes a combination of bottom-up and top-down approaches across segments and utilizes databases, primary research insights and industry experts for analysis.

Raw data is obtained from multiple sources and thoroughly filtered to ensure only authenticated and validated sources are considered. We collect data from raw material suppliers, industry associations, technology providers, and buyers to gain a holistic perspective.

Quantitative Analysis

Our market estimates are derived through statistical models, beginning with collection of historical data and analysis of macro- and micro-economic factors influencing the market. Gathered information on market dynamics, technology and pricing trends are utilised to build the models.

Econometric and technological models are applied to project short- and long-term market potential respectively. A bottom-up approach is preferred to minimize errors. Key parameters considered include market drivers and restraints, material pricing trends, regulatory scenarios, and capacity additions.

Weights are assigned to these parameters based on impact analysis and market forecasting is performed via statistical tools and techniques. We believe this methodology results in an accurate and realistic market picture.