Hong Kong’s Entertainment and Media industry to grow at 2.26% CAGR from 2024 to 2029, fuelled by digital shift and AI integration – PwC

View this page in: 繁體中文版

Hong Kong, 13 August 2025 – PwC released today the Global Entertainment and Media Outlook 2025-2029 Hong Kong Summary. This indicates that the entertainment and media (E&M) industry is set for sustained growth, with a 2.26% compound annual growth rate (CAGR), reaching US$15 billion in 2029. These projections for Hong Kong come as companies adapt strategies to align with local priorities, and as the E&M industry navigates trade uncertainties and shifting consumer preferences globally.

Data indicates that, over the next five years, Hong Kong’s E&M industry will continue its shift from consumer spending to advertising spending, consistent with global trends. This ongoing transition is forecast to see advertising’s share of the local sector’s expenditure rise from roughly one-fifth in 2020 to nearly one-third by the end of the decade.

Cecilia Yau, PwC Chinese Mainland and Hong Kong Media Leader, said, “Hong Kong’s E&M companies are increasingly migrating toward advertising and subscription models, reflecting a significant shift in the industry’s revenue strategy. As digital platforms and streaming services outpace traditional media, consumers are seeking personalised and immersive experiences, encouraging companies to provide high-quality content and services that captivate and drive spending. Consequently, Hong Kong’s media groups are revitalising their strategies to prioritise continuous digital revenue streams over one-time transactions. This adaptation, focused on delivering engaging consumer experiences, paves the way for enduring growth in the digital age.”

The segments leading E&M growth in Hong Kong over the next five years will be Internet advertising and OTT Video, with each segment expected to achieve a CAGR of 7.4% and 4.6% to 2029, respectively.

Internet advertising

Internet advertising revenue in Hong Kong was valued at US$1.8 billion in 2024 and is projected to grow at a 7.4% CAGR, reaching US$2.6 billion by 2029. As the segment matures, year-on-year growth is expected to gradually slow down from 14.3% in 2024 to 4.9% by 2029. Video advertising emerges as the fastest-growing category among Hong Kong’s internet advertising segments, with a CAGR of 8.5%, and is anticipated to account for 29.3% of the market by 2029. By contrast, classified internet advertising revenue is expected to remain almost flat. However, with the overall internet advertising market expanding rapidly, its share is projected to drop from 3.8%in 2020 to just under 1.5% by 2029, underscoring the industry’s shift towards more dynamic and engaging formats such as video advertising.

OTT (Over-the-top) video

Hong Kong’s OTT market is projected to continue to grow, with a CAGR of 4.6% from 2024 to 2029, and expectations for revenue rising from US$490 million in 2024 to US$613 million in 2029. The streaming landscape in Hong Kong represents a dynamic and evolving market, where prominent English-language platforms engage in robust competition with local providers. This interaction fosters a complex ecosystem characterised by ongoing growth, as local services strive to differentiate themselves through region-specific content and customised offerings.

Cinema

Hong Kong’s mercurial film market is prone to fluctuations, yet is predicted to continue growing steadily over the next five years. In 2024, overall box office revenues dipped to US$172 million, but are expected to climb to US$210 million by 2029. The vibrancy of this local industry is reflected in 2025’s highest grossing films so far: the Chinese Mainland-produced Ne Zha 2 leads, followed by the American blockbuster F1: The Movie in second place, while local productions The Prosecutor ranks fourth, and Papa seventh overall. The city’s role as a film centre as well as a major distribution hub in the Asia-Pacific region was further strengthened in January 2025, when the Hong Kong Film Development Council (FDC), launched a revised film production financing scheme (2.0) to increase government support for productions.

Live music

Live music in Hong Kong is anticipated to see solid revenue growth, rising to US$207 million in 2025 and continuing its upward trajectory, reaching US$218 million by 2029. The reviving segment is benefiting from the support of the Hong Kong government, combined with the opening of the New Kai Tak Stadium in March 2025. This sleek, next-generation venue has already hosted globally acclaimed acts like Coldplay, attracting 184,000 spectators over four days in April. Following this success, a number of renowned artists are set to perform at the new arena in the coming years. Andrew Wong, E&M Industry Partner, PwC Hong Kong commented, “the opening of the larger, advanced performance space offers Hong Kong more opportunities to host renowned acts and has the potential to increase revenue while supporting tourism and related industries.”

Generative AI

Generative AI (GenAI) is transforming the advertising landscape in E&M, with Connected TV serving as a prime example. By enabling hyper-personalised ads, GenAI is making this platform substantially more appealing to both viewers and advertisers. As a result, advertising spend on Connected TV is growing rapidly. It is projected to increase from a 5.9% share in 2020 to 22% by 2024, eventually capturing nearly 45% of the revenue previously generated by traditional TV advertising by 2029, totalling approximately US$51 billion. Although mobile internet services currently dominate overall spending, projected to reach US$1.3 trillion by 2029, the swift rise of Connected TV advertising is starting to catch up. This change signifies a shift in revenue dominance, with personalised advertising creating fresh opportunities for media businesses.

GenAI is also revolutionising video ad production by cutting costs and reducing production times. When combined with programmatic TV—which automates the buying and selling of ads—this technology opens even more opportunities and propels the expansion of Connected TV.

Beretta Ching, E&M Industry Partner, PwC Hong Kong said, “GenAI is poised to have a greater influence on many key sectors over this forecast period, especially advertising, by acting as an amplifier of ingenuity. Looking broadly across Entertainment and Media sectors, GenAI has already begun to enhance cost efficiency in back-office operations, significantly increasing profitability and company valuations. However, the transformative power of AI has the scope to surpass previous technologies by fostering new business models and delivering unparalleled personalised and engaging experiences for customers.”

Notes to Editors

Download PwC’s Global Entertainment and Media Outlook 2025-2029: Hong Kong Summary (English only):
https://www.pwchk.com/en/industries/telecommunications-media-and-technology/publications/entertainment-and-media-outlook-2025-2029.html