AI In Media & Entertainment Market

AI in Media & Entertainment Market Size and Share:

The global AI in media & entertainment market size was valued at USD 19.78 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 123.46 Billion by 2033, exhibiting a CAGR of 22.56% during 2025-2033. North America currently dominates the market, holding a significant market share of 33.8% in 2024. The growing demand for personalized content, rapid digital transformation in the media and entertainment sector and the rise of over-the-top (OTT) platforms are propelling the market growth. Besides this, the AI in media & entertainment market share is driven by advancement in AI technologies and expanding audience base.

Tools powered by artificial intelligence (AI) examine large datasets to reveal patterns in audience behavior and trends in content consumption. These insights enable media companies to tailor content, enhancing engagement and viewer satisfaction across various platforms. Predictive analytics enables companies to forecast audience tastes, effectively influencing their production and marketing approaches. Real-time analytics allows content creators to analyze the effectiveness of campaigns as well as enhance strategies. AI tools detect new trends, assisting media companies in remaining competitive in the dynamic industry environment. Advanced audience segmentation ensures tailored content delivery, catering to diverse preferences and maximizing impact. Streaming platforms leverage AI to optimize recommendation systems, which increases viewer retention and subscriptions. Advertisers utilize AI analytics to target specific demographics, improving the precision and efficiency of campaigns.

Content creation and automation significantly drive the market for AI in media and entertainment in the United States. AI-powered tools streamline creative workflows, enabling faster manufacturing of high-quality content for varied audiences. Automation technologies assist in scriptwriting, video editing, and visual effects, reducing labor-intensive processes. Generative AI models create compelling narratives and dialogue for various media formats. Video editing software powered by AI accelerates post-production, enabling faster delivery of films and shows. Automation supports localization by generating subtitles and dubbing in multiple languages for global audiences. AI algorithms optimize content formatting, ensuring compatibility across platforms such as social media, mobile apps and streaming services. Automated tools analyze trends and audience preferences to guide content development and maximize viewer engagement. Virtual production methods, incorporating AI, are revolutionizing set design and scene rendering with greater efficiency. AI-based image recognition software simplifies the creation of realistic animations, enhancing visual storytelling quality. In December 2024, AI studio Asteria announced its partnership with Moonvalley to develop an ethically trained video model for Hollywood. The AI model is set to be introduced in early 2025, targeting the film industry. The collaboration focuses on ethical training and is expected to address the demand for AI-driven content creation in Hollywood.

AI in Media & Entertainment Market Trends:

Increase in demand for personalized content

With the proliferation of digital platforms, audiences now have access to a vast content library. In this context, personalization is key to user retention and engagement. According to reports, 87% of industry professionals claim that people generally expect personalized experience in some form. AI plays a critical role by leveraging machine learning (ML) algorithms to analyze user behavior, preferences, and historical data. AI algorithms are capable of predicting preferences of audience, allowing for highly tailored content, thereby enhancing user engagement and satisfaction. These insights allow platforms to recommend content tailored to individual tastes to improve the viewer experience and foster user loyalty. AI also assists in creating personalized marketing campaigns, delivering targeted messages to potential audience. The result is a dynamic and individualized user interface that significantly improve engagement rates and underlines the importance of AI in driving content personalization in the media and entertainment industry. For instance, in September 2024, Qvest and NVIDIA announced a partnership to accelerate AI adoption in the media and entertainment industry. Their generative AI (GenAI) solutions aim to drive customer engagement, operational efficiency, and revenue generation. By combining NVIDIA's AI platform with Qvest's industry expertise, the collaboration aims to empower media and entertainment companies to implement AI quickly. The companies plan to showcase their GenAI accelerators at an event, offering tangible use cases at Qvest's booth. These advancements in AI-driven personalization and strategic partnerships are creating a positive AI in media & entertainment industry outlook.

Rise in digital transformation

As media and entertainment companies increasingly adopt digital technologies, the demand for AI in streamlining operations and enhancing efficiencies is witnessing an upsurge. Digital transformation includes automating routine tasks, enhancing content creation, optimizing distribution, and refining monetization strategies. For instance, AI helps automate scriptwriting, storyboard creation, and video editing, thus reducing production time and costs. According to reports, 33% of businesses use gen AI tools to cut costs. AI also plays a crucial role in efficient content distribution as it helps identify the optimal platforms and timings for content release, maximizing reach and impact. Furthermore, AI supports monetization by enabling targeted advertising and subscription models based on user preferences. These applications are integral to the digital transformation journey of the industry, emphasizing the vital role of AI, which in turn is impelling market growth. According to the AI in media & entertainment market forecast, the increasing integration of AI technologies across content creation, distribution, and monetization processes is expected to strengthen market growth in the coming years significantly. For instance, in September 2024, Huawei unveiled AI-powered cloud solutions for the media and entertainment industry at the Cloud Media and Entertainment Summit in Amsterdam. The Huawei Cloud E³ Media Services offer tools to enhance content production and distribution efficiency, including Low Latency Live for live-streamed content. The launch also saw the introduction of MetaStudio, a digital content production pipeline with AI customization tools. The initiative aims to revolutionize the industry through AI-powered solutions.

Continuous advances in AI technologies

AI in media & entertainment market demand are shaped by the need for ongoing technical support and custom solutions to fully leverage AI's potential. The continuous evolution of AI technologies, including ML, deep learning, natural language processing, and computer vision, is propelling the market growth. Advanced ML algorithms can predict audience behavior and trends, enabling media companies to stay ahead of the curve. Deep learning assists in creating realistic digital effects and animations, enhancing visual storytelling. Natural language processing enhances the capability of chatbots, virtual assistants, and other interactive applications, improving user interactions. Meanwhile, computer vision aids in content moderation and copyright detection, protecting intellectual property rights (IPR). These technological advancements are fostering innovative applications and making AI an indispensable tool in the media and entertainment industry, thereby supporting market growth. According to AI in media & entertainment market overview, the widespread adoption of AI-driven tools is not only enhancing content creation and distribution but also optimizing personalized experiences for users. According to industry reports, media and broadcast companies are generally positive about AI adoption. The study reveals that 85% of respondents believe AI will significantly impact the media and broadcast industry, with 44% and 33% of technology buyers seeing automated production of clips and speech-to-text, respectively, as the most impactful use cases.

AI in Media & Entertainment Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global AI in media & entertainment market, along with forecasts at the global, regional, and country levels from 2025-2033. The market has been categorized based on solution and application.

Analysis by Solution:

• Hardware/Equipment
• Services

Services stand as the largest component in 2024, holding 60.0% of the market share. Services represent the largest market segment due to the critical need for specialized expertise in implementing AI solutions, The implementation of AI requires expertise in integrating AI solutions within existing infrastructures and training the workforce to utilize these technologies effectively. These complexities strengthen the need for professional services, including consulting, system integration, and support and maintenance. Moreover, as AI technologies continue to evolve, businesses require ongoing technical assistance to keep their AI solutions updated and tackle potential issues, thus requiring managed services. Additionally, organizations may often need custom solutions tailored to their unique requirements to fully leverage AI's potential, further driving the demand for AI services. AI services also encompass the essential training and support required for the employees of media and entertainment companies to utilize AI tools effectively, thereby maximizing the ROI. Therefore, the high demand for these varied services fuels the growth of this segment in the market.

Analysis by Application:

• Gaming
• Fake Story Detection
• Plagiarism Detection
• Personalization
• Production Planning and Management
• Sales and Marketing
• Talent Identification
• Content Capture
• Sports Automatic Productions

AI can analyze and predict customer behavior and trends with higher precision. The vast volumes of data generated from various sources provide a rich source for AI to draw insights, enabling the creation of highly targeted and personalized marketing campaigns. AI helps to segment the market and identify potential target audiences, allowing marketers to optimize their efforts and improve ROI. AI-driven analytics can also measure campaign effectiveness in real time, facilitating marketers to adjust strategies promptly and efficiently. The application of AI in sales is equally impactful as AI predictive analytics can help forecast sales trends and customer purchasing behaviors, aiding in strategic decision-making. Moreover, AI chatbots and virtual assistants contribute to the sales process by providing 24/7 customer interaction, enhancing customer service, and subsequently improving sales potential. Therefore, the tremendous impact of AI in enhancing efficiency, precision, and personalization in sales and marketing initiatives is impelling the growth of this market.

Regional Analysis:

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa

In 2024, North America accounted for the 33.8% of the market share. North America is home to numerous tech giants, leading research institutions, and innovative startups specializing in AI technologies. These entities drive continuous research and development (R&D), expanding the boundaries of AI applications in the media and entertainment industry. Moreover, North America boasts a robust digital infrastructure and high internet penetration rates, providing fertile ground for the adoption and utilization of AI solutions. This infrastructure supports the creation, distribution, and consumption of digital content, making it an ideal environment for AI technologies to flourish. For instance, in June 2024, TIME and OpenAI announced a partnership to integrate TIME's trusted journalism into OpenAI's products, including ChatGPT. The collaboration will allow OpenAI to access TIME's extensive archives to enhance its products and provide proper attribution to original sources. In return, TIME attains access to OpenAI's technology to develop new products and enhance the delivery of journalism. The partnership aims to expand global access to accurate and trusted information. Another contributing aspect is the region's strong economic growth and substantial investments in AI. The availability of venture capital funding and government support further foster the development and commercialization of AI solutions in the media and entertainment sector. Besides this, North America has a mature media and entertainment industry that readily embraces technological advancements. The presence of major film studios, broadcasting companies, and streaming platforms creates a high demand for AI-driven solutions to enhance content creation, recommendation algorithms, audience engagement, and monetization strategies.

Key Regional Takeaways:

United States AI in Media & Entertainment Market Analysis

The United States has emerged as a major player in the AI-driven transformation of the media and entertainment sector. A primary driver is the increasing demand for personalized content experiences, with AI technologies enabling more accurate content recommendations based on individual preferences. As per reports, 81% of customers in the USA prefer companies that offer a personalized experience. Personalized content enhances user experience by making content discovery more efficient and enjoyable, while also ensuring that the content presented is highly relevant to their tastes. Apart from this, major streaming platforms are utilizing AI for personalized content suggestions that aid in enhancing user engagement. In line with this, AI-driven automation tools in content creation, including video editing and scriptwriting, allow media companies to optimize workflows and reduce production costs. Traditionally, creating high-quality content, whether for films, TV shows, or online videos, involves time-consuming tasks, requires substantial human resources, and technical expertise. However, AI technologies are increasingly being leveraged to automate and optimize these processes, allowing media companies to achieve higher efficiency. AI-powered video editing tools can trim, cut, and rearrange footage automatically, saving editors hours of manual work. Furthermore, the growing adoption of AI-powered virtual and augmented reality (AR) applications is offering a favorable market outlook.

Asia Pacific AI in Media & Entertainment Market Analysis

In the Asia Pacific region, the AI in media & entertainment market growth is being driven by the rapid digital transformation, large audience base, and technological advancements in nations like India, South Korea China, and Japan. As per the Ministry of External Affairs Government of India, digital transformation in India is poised to create a USD 1 Trillion economy by 2028. In line with this, the increasing use of AI for content recommendations and targeted advertising is reshaping the media landscape, providing more relevant and personalized experiences to users. AI systems track what genres, actors, or types of content a user interacts with most frequently, then use this data to predict what other content they are likely to enjoy. These algorithms continuously learn and adapt, becoming more precise over time, ensuring that users are exposed to content that matches their interests, even when they might not have discovered it otherwise. Moreover, the gaming industry, especially in Japan and South Korea, is another critical sector leveraging AI to enhance user experiences, create realistic environments, and generate automated content. As a result, the region is witnessing accelerated investment in AI technologies to cater to the evolving demands of digital content consumption and entertainment.

Europe AI in Media & Entertainment Market Analysis

In Europe, the market is experiencing growth because of technological innovation as well as stringent data privacy regulations. As digital media utilization grows, AI technologies are being adopted to enhance personalization, automate content creation, and improve user experiences. As per reports, 78% of European audiences watch significantly more video-on-demand (VOD) content. Apart from this, AI-powered content recommendations in streaming platforms and news outlets help media companies cater to diverse preferences, which improves audience engagement. In line with this, the European Union’s focus on data protection, alongside the implementation of AI-powered tools to ensure compliance with regulations like GDPR, is also helping drive the adoption of AI. Furthermore, AI is being used extensively in the production process like video editing, sound design, and animation, allowing for more efficient and creative outputs. In addition, the rapidly expanding gaming industry in Europe, combined with the region's focus on innovative technologies, is accelerating the demand for AI solutions, particularly in game development, simulation, and interactive entertainment. Besides this, investment in AI-based advertising and content analytics by media agencies is reshaping the European entertainment landscape, optimizing campaigns, and improving revenue generation, which is supporting the market growth. 

Latin America AI in Media & Entertainment Market Analysis

The market in Latin America, is being driven by the increased internet penetration, the growing adoption of mobile devices, and streaming platforms. As per reports, the share of smartphones users is 66.6% in Brazil. As audience demand more tailored content, AI algorithms are helping media companies deliver personalized viewing experiences. AI is also playing a pivotal role in improving content distribution and targeting specific audience segments, which is essential for media companies in a highly diverse region. In line with this, the increasing interest in AI-powered content creation and production tools, as it allows creators to automate processes and reduce costs, is propelling the market growth. The expanding gaming industry and the shift toward online platforms is bolstering the market growth.

Middle East and Africa AI in Media & Entertainment Market Analysis

The high internet usage among individuals is contributing to the adoption of AI in media platforms, particularly in online streaming and mobile entertainment. Media companies are leveraging AI for data-driven insights, content recommendations, and targeted advertising, offering tailored experiences to a diverse and tech-savvy audience. Additionally, the region's significant investments in smart cities and infrastructure development, along with the rise of 5G networks, are facilitating the seamless delivery of AI-based content and experiences. In the MENA region, there were 30 Million 5G connections as of November 2023, as per reports. AI is also reshaping the media production landscape, enabling automation in areas like video editing, sound design, and content analysis. Moreover, governments and businesses are embracing AI to enhance their media and entertainment offerings, fostering a supportive environment for the AI-powered innovations. 

Competitive Landscape:

Key players are crucial in accelerating the adoption of AI in media and entertainment industries. Companies are leveraging AI to enhance personalized viewer experiences and engagement. AI-driven tools from tech giants simplify content creation and distribution workflows. Startups focused on AI innovation introduce niche solutions tailored for specific media and entertainment applications. Strategic partnerships between entertainment firms and AI companies are driving advancements in production and marketing processes. For instance, in September 2024, Amazon Web Services Inc. (AWS) partnered with Digital Domain to scale its virtual human technology using generative AI. This collaboration enables advanced autonomous virtual humans for media, gaming, and immersive entertainment industries. Leveraging AWS cloud infrastructure, Digital Domain enhances real-time rendering and ML capabilities for AI-driven features. Moreover, AI-powered analytics platforms help media firms extract actionable insights from audience data. AI companies offer tools for automating visual effects and editing, reducing production time significantly. Collaboration between AI developers and content creators fosters innovation in storytelling and immersive experiences.

The report provides a comprehensive analysis of the competitive landscape in the AI in media & entertainment market with detailed profiles of all major companies, including:

• Amazon Web Services Inc. (Amazon.com Inc.)
• EVS Broadcast Equipment SA
• Gravity Media
• GrayMeta Inc.
• Hudl
• International Business Machines Corporation
• LMG LLC (Entertainment Technology Partners)
• Move.ai Ltd.
• Pixellot
• PlaySight Interactive Ltd.
• Spiideo AB
• Veritone Inc. 

Latest News and Developments:

• November 2024: Coactive AI, a Multimodal Application Platform (MAP) that creates an easy to analyze and search images and videos, collaborated with Amazon Web Services (AWS) to provide generative AI solutions, which streamline image and video analytics for Coactive customers. Coactive's platform helps analyze and organize unstructured visual data, unlocking the value of images and videos. AWS and Coactive are jointly addressing the following use cases for customers in the retail, media & entertainment, technology, and real estate sectors.
• February 2024: Microsoft joined forces with media startup Semafor to utilize an AI chatbot in the development of news stories. The project, dubbed "Signals," focuses on offering a breaking news feed with varied perspectives on major events.
• January 2024: GRUP MEDIAPRO in collaboration with Microsoft announced the launch of an AI and synthetic media laboratory, at the ISE show. GRUP MEDIAPRO and Microsoft are basing their collaboration on a human-centered approach. The AI Center will connect with the business units of the group to offer knowledge and experience in the entertainment, audiovisual, and sports sectors.
• November 2023: Zee Entertainment Enterprises partnered with NASSCOM for its recently introduced Generative AI Foundry programmed, which focuses on fostering innovation and growth in the start-up ecosystem. Because of the strategic partnership, ZEE’s Technology and Innovation Centre will mainly aim on supporting and enabling co-piloted generative AI solutions for India’s media and entertainment ecosystem. 

AI in Media & Entertainment Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the AI in media & entertainment market from 2019-2033.
• The AI in media & entertainment market research report provides the latest information on the market drivers, challenges, and opportunities in the global market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the AI in media & entertainment industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.