China’s Entertainment and Media Industry Ushers in a New Cycle of High-Quality Development

——An Analysis of PwC’s “Global Entertainment & Media Outlook 2025-2029” China Summary

PwC recently released its latest “Global Entertainment & Media Outlook 2025-2029” report, with the China summary indicating that China’s entertainment and media industry is projected to achieve a 4.5% compound annual growth rate (CAGR) over the next five years, significantly outpacing the global average of 3.0%. This forecast underscores the sustained vitality and growth potential of China as the world’s second-largest entertainment and media market.

1. Core Growth Drivers

Digital Content Consumption Upgrade
The report highlights that China’s digital content market will maintain an annual growth rate of 5.2%, driven primarily by:
• Continued innovation in short-video platforms, with user base expected to exceed 900 million by 2029
• Online literature market poised to reach RMB 30 billion, with overseas expansion emerging as a new growth area
• Cloud gaming technology maturing, potentially attracting over 200 million users
The AR (augmented reality) market is the fastest-growing segment in mixed reality, with mainland China being the world’s second-largest mobile AR market. It is projected to grow at a 13.1% CAGR to reach $22.5 billion by 2029, surpassing the U.S. to become the world’s largest mobile AR market.

Strong Recovery of Offline Entertainment
• Concert economy continues to heat up, with market size expected to reach RMB 8 billion in 2025
• Immersive entertainment experiences (e.g., VR theme parks, immersive theater) growing at over 20% annually
• Film market rebounding, with domestic films potentially accounting for over 85% of box office revenue

1. Structural Industry Changes

With rapid adoption of AIGC technologies, by 2029:

Intelligent Content Production
• 50% of short videos will be AI-assisted in creation
• 30% of TV/film scripts will utilize AI tools
• Virtual idol market may reach RMB 10 billion

Diversified Business Models
• Subscription revenue share to rise to 40%
• Cross-industry marketing to grow 15% annually
• Accelerated application of NFTs in entertainment

III. New Regional Development Patterns

The report emphasizes distinct regional characteristics:
• Yangtze River Delta: Digital content innovation hub
• Greater Bay Area: Integration zone for tech and entertainment
• Chengdu-Chongqing region: Epicenter of influencer economy and digital creativity

Additional insights: The summary notes China as the world’s largest video games and esports market, with total revenue projected to grow at 5.73% CAGR to $82.7 billion by 2029. Social/casual games will increase from 85% to 87% of total game revenue during 2024-2029.

Zhuoran Zha, PwC China Entertainment & Media Partner, commented: “With rapid digital advancements and evolving user preferences, premium content creation and immersive experiences have become key to overcoming growth bottlenecks in gaming. Technology innovation and cross-sector integration are strengthening China’s voice in global cultural trade, presenting vast development opportunities.”

1. Challenges and Opportunities

PwC China’s Entertainment & Media Leader noted:
“While the outlook is positive, challenges like content homogenization, regulatory changes, and intensifying global competition persist. Companies must prioritize original content development, technological innovation, and global strategy.”

1. Future Outlook

Current trends suggest China’s entertainment and media industry may achieve by 2029:
• Market size exceeding RMB 3.5 trillion
• Digital content exports reaching $20 billion
• 3-5 globally influential cultural-tech enterprises

Conclusion:
The 4.5% growth projection reflects both the industry’s stable development and its transition to a quality-focused, innovation-driven phase. Against the backdrop of deep integration between digital economy and cultural industries, Chinese enterprises must seize technological opportunities to build a more globally competitive ecosystem.

(Data source: PwC “Global Entertainment & Media Outlook 2025-2029” China Summary)