Online Entertainment Market

Online Entertainment Market Size and Share:

The global online entertainment market size was valued at USD 522.1 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 2,184.7 Billion by 2033, exhibiting a CAGR of 17.24% from 2025-2033.  North America currently dominates the market, holding a market share of over 45.6% in 2024. The growth of the North American region is driven by advanced internet infrastructure, high smartphone adoption, and robust streaming platform usage.

The expansion of internet infrastructure worldwide is pivotal in enabling access to online entertainment. High-speed internet, particularly with the rollout of 4G and 5G networks, is making streaming and other online services seamless, even in remote regions. Additionally, the widespread use of smartphones, tablets, laptops, and smart TVs is bolstering the online entertainment market growth. With these devices becoming more affordable and technologically advanced, a larger audience can engage with digital content across multiple platforms. Besides this, online entertainment offers competitive pricing compared to traditional forms like cable television or movie theaters. Free and ad-supported models, alongside affordable subscription plans, attract a diverse audience seeking value for money. In addition, continuous improvements in 4K streaming, virtual reality (VR), and augmented reality (AR) technologies are elevating the quality of online entertainment, offering audiences more immersive and engaging experiences.

The United States plays a crucial role in the market, driven by the increasing investment in creating exclusive, high-budget content that keeps viewers subscribing and attracts new audiences. Furthermore, the consolidation of multiple streaming services into a single platform to enhances user convenience, expands content accessibility, and improves the overall viewing experience is impelling the market growth. This strategy often includes personalized recommendations, simplified navigation, and flexible subscription options, making it a key driver in attracting and retaining subscribers. In 2024, Disney announced the integration of Hulu into the Disney+ app for US Disney Bundle subscribers, allowing seamless access to both libraries. This update provides personalized recommendations, easier content discovery, and expanded subscription options. A marketing campaign celebrates this milestone with refreshed branding and experiential activations.

Online Entertainment Market Trends:

Rising Internet Penetration

Increased internet penetration represents one of the key factors propelling the market growth. In 2024, the global internet user population reached 5.44 billion, representing approximately two-thirds of the world’s population, according to industry reports. This expansion has provided a vast audience for digital content and entertainment platforms. The proliferation of affordable smartphones, coupled with competitive mobile data plans, are further accelerating access to online services in emerging markets. High-speed internet, supported by advancements like 4G and 5G networks, ensures seamless streaming, gaming, and live interaction experiences, making digital entertainment more accessible and enjoyable. Additionally, the rise of smart TVs, connected devices, and home broadband networks has enriched entertainment options beyond mobile usage. These developments enable on-demand content, live streaming, and interactive experiences, attracting diverse audiences. As internet connectivity continues to improve globally, especially in underserved regions, it is expected to propel the online entertainment market in the coming years

Proliferation of Smartphones

The proliferation of smartphones is a crucial factor impelling the market growth. In 2023, the global smartphone penetration rate reached 69%, up from 2022 levels, with 6.7 billion smartphone subscriptions among the world’s 7.4 billion population, according to industry reports. This widespread adoption is supported by the availability of affordable smartphones and competitive mobile data plans, enabling more users to access online entertainment. Modern smartphones feature high-resolution screens, advanced graphics capabilities, and powerful processors, enhancing the quality of streaming, gaming, and interactive content. These devices support seamless access to platforms offering movies, music, games, and live streaming, catering to diverse entertainment needs. Additionally, the integration of artificial intelligence (AI)-driven features and personalized app experiences is making mobile entertainment more engaging. The rise of mobile-friendly platforms and apps, coupled with improved connectivity through 4G and 5G networks, is further amplifying the impact of smartphones on the online entertainment market.

Expansion of the Gaming Industry

The growth of the gaming industry is a vital factor positively influencing the market. For instance, according to IMARC, the global gaming market size was estimated to be USD 221.6 Billion in 2023. Looking forward, the market is expected to expand from USD 241.1 Billion in 2024 to USD 471.3 Billion by 2032, with a growth rate (CAGR) of 8.74% over the forecast period. This growth is driven by advancements in technology, including innovations in graphics, AI, and virtual reality (VR), which are creating more immersive and engaging gaming experiences. The rise of cloud gaming platforms has made high-quality games accessible without the need for expensive hardware, attracting a broader audience. Additionally, the popularity of esports and live-streaming platforms has increased audience engagement, further propelling the industry's growth. Mobile gaming, supported by improved smartphone capabilities and affordable internet, has also contributed significantly. These factors are driving interest, investment, and revenues in the gaming sector, boosting the overall online entertainment market.

Growing Preference for Smart Home Devices

The rising demand for smart home devices is significantly enhancing user engagement with digital entertainment. Individuals are investing in interconnected devices like smart TVs, streaming platforms, and voice assistants, creating a seamless experience for content viewing. In the year 2023, the QLED series recorded sales totaling 8.31 million units, as per the data published in the Samsung Newsroom in 2024. Samsung's strong sales of QLED TVs are a prime example of how these devices are fueling the demand for high-quality, immersive digital experiences. With advanced features such as 4K resolution, AI-enhanced picture quality, and compatibility with popular streaming services, QLED TVs are encouraging people to spend more on digital content and entertainment subscriptions. As smart home ecosystems become more integrated, users are investing more in devices and content that offer convenience and superior viewing experiences. This shift towards smart home entertainment is anticipated to continue, propelling the market forward in the coming years.

Online Entertainment Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global online entertainment market, along with forecast at the global, regional, and country levels from 2025-2033. The market has been categorized based on form, revenue model, and device.

Analysis by Form:

• Video
• Audio
• Games
• Internet Radio
• Others

Video segment leads the market, accounting for 43.0% in 2024. Video holds the biggest online entertainment market share driven by the increasing demand for streaming services and on-demand content. The growing popularity of subscription-based platforms offering diverse libraries of movies, TV shows, and original productions is playing a pivotal role. Short-form videos, fueled by social media platforms, are captivating audiences with engaging, easily viewed content. Advances in internet connectivity, such as 5G, and the proliferation of smartphones are enabling seamless video streaming, further driving usage. User preferences for live streaming events, from sports to concerts, are adding another layer to video’s dominance. The integration of high-quality production techniques and immersive formats like 4K and virtual reality are elevating viewer experiences, attracting larger audiences. Additionally, video content’s versatility, ranging from educational tutorials to entertainment clips, caters to a broad range of interests. These factors collectively position video as the most viewed and lucrative form of online entertainment.

Analysis by Revenue Model:

• Subscription
• Advertisement
• Sponsorship
• Others

Advertisement represents the largest segment because of its effectiveness in reaching vast, targeted audiences. Digital advertising leverages advanced analytics and algorithms to deliver personalized ads, ensuring higher engagement and conversion rates. The widespread adoption of streaming platforms, social media, and mobile apps is creating abundant opportunities for advertisers to reach users across diverse demographics. Advertisers benefit from the ability to integrate ads seamlessly into content through formats like in-stream videos, banners, and sponsored posts, enhancing visibility without disrupting user experiences. Furthermore, the growing user base of free, ad-supported platforms has fueled ad spending, as brands prioritize cost-effective strategies to maximize exposure. Innovations such as interactive ads and immersive formats like AR further enhance engagement, making digital advertising an indispensable revenue driver. As businesses shift budgets from traditional media to digital channels, advertisements continue to dominate the market, providing sustainable growth for entertainment platforms.

Analysis by Device:

• Smartphones
• Smart TVs, Projectors and Monitors
• Laptop, Desktop and Tablets
• Others

Smartphones dominate the market due to their unparalleled convenience, affordability, and widespread adoption across the globe. Their portability allows users to access online entertainment anywhere, making them a preferred device for watching digital content. Enhanced internet connectivity, such as 4G and 5G networks, supports seamless streaming and gaming experiences. Advances in smartphone technology, including larger screens, better resolutions, and powerful processors, are significantly improving the quality of entertainment watching. Affordable data plans and the availability of budget-friendly smartphones are further increasing their penetration, even in developing regions. Mobile-friendly apps and platforms designed for entertainment, such as streaming services, social media, and online games, are also contributing to their dominance. Additionally, the integration of features like personalized recommendations and offline viewing options caters to diverse user preferences, solidifying smartphones as the leading device for accessing a wide range of online entertainment. Their versatility ensures they remain indispensable in this fast-growing market.

Regional Analysis:

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

In 2024, North America accounted for the largest market share of 45.6%. According to the online entertainment market statistics, North America has high internet penetration rates, with robust broadband and high-speed mobile networks, facilitating seamless streaming and online gaming experiences. Apart from this, mobile gaming and cloud gaming are major growth areas. North America is a considerable market casual as well as competitive gaming, which is continuously supported by platforms like Twitch, along with game developers that are focusing on mobile-first experiences. Moreover, platforms like Netflix, Hulu, Amazon Prime Video, and Disney+ are major players in the market, offering extensive libraries of on-demand video content. Their popularity continues to drive market growth. In October 2024, Netflix and Universal Filmed Entertainment Group announced the renewed licensing deal which would give Netflix exclusive rights to the animated films of Illumination and DreamWorks Animation. In addition, from 2027, Netflix will get rights to live-action films by Universal Pictures and Focus Features in the United States for an exclusive 10-month window.

Key Regional Takeaways:

United States Online Entertainment Market Analysis

In North America, the United States accounted for 88.10% of the total market share. The online entertainment market in the US is currently booming with the availability of internet access for most of its population and the rising need for digital content from its users. An industrial report suggests that, in 2023, the US digital media market size had reached USD 188.1 Billion, primarily with strong subscription growth across platforms. Over 85% of households in the United States have at least one subscription to a streaming service; Netflix, Amazon Prime, and Disney+ hold the top ranks. Mobile gaming and digital events growth are further accelerated. Content diversification and advanced streaming technologies from companies like Netflix and Amazon have been driving innovation. Popularity of e-sports and live streaming services combined with favorable regulations puts the US in a pole position in the world in terms of online entertainment.

Europe Online Entertainment Market Analysis

Online entertainment remains an expansion region for Europe's overall Internet economy. Higher and ever-growing penetration, in concert with increasing use of new content distribution, should provide continuing catalysts to grow that spend in years ahead. According to industrial reports, during 2023, total revenue generated in online entertainment across Europe hit over EUR 21 billion. Video-on-demand (VOD) platforms like Netflix, Amazon Prime, and Disney+ are also booming. The shift is thus from traditional media to digital streaming, and gaming is picking pace with France and Sweden achieving very high levels of mobilization and console gaming, and local players such as Sky and Deezer are aggressively battling international giants, focusing on local content to attract subscribers. Strict regulations by the EU on matters such as data privacy and content rights help to stabilize the market environment, encouraging innovation and investment. It is also likely that user preferences in Europe will keep expanding over time, thereby creating more opportunities for both global and local players.

Asia Pacific Online Entertainment Market Analysis

The Asia Pacific market for online entertainment is highly booming because of rising disposable incomes and increased internet access. According to one of the leading consultant firms report, China's entertainment and media industry is likely to grow to around USD 479.9 Billion in 2027 with a CAGR of 6.1%. Internet advertising, video streaming, video games, and esports are driving these growth sectors. Video streaming and gaming, especially in the case of video streaming, is at the center of the growth in China's online entertainment segment. Mobile gaming has also shown a strong increase. Other developments that further improve the region's market development are local partnerships, such as Tencent's deal with Sony to distribute games, and government investments in digital infrastructure, which have been increasing lately. The Asia Pacific region would eventually become the biggest competitor in the entertainment world while China would be at the leading position in terms of Internet Entertainment Revenue.

Latin America Online Entertainment Market Analysis

Latin America's streaming market remains one of the strongest growth regions, with diverse streaming offerings fighting to reach every type of user. Recent reports revealed that 765 unique active platforms exist in the region; out of these, 29 percent are free, 24 percent subscription-based, 9 percent free with ads, 2 percent transactional, and 2 percent with access to TV content via different devices, so-called TV Everywhere. Hybrid models that provide two or more choices for accessing content are observed in 34% of the platforms. One trend that has started to appear in the region is the subscription-with-ads model, which has already worked well in the United States and now expands into Latin America. This model offers a two-fold benefit: streaming companies generate additional revenue through ads, while users can enjoy services at a lower price. This trend will further increase market growth in Latin America as streaming platforms continue to change their business models.

Middle East and Africa Online Entertainment Market Analysis

The Middle East and Africa online entertainment market is growing strongly due to an increase in the adoption of digital, mainly in Saudi Arabia. According to industrial reports, Saudi Arabia had 36.84 million internet users at the beginning of 2024, with an internet penetration rate of 99.0%. Social media users were also reported at 35.10 million, which translates to 94.3% of the population, showing the high uptake of digital use. The country also reached 49.89 million active cellular mobile connections in the quarter, exceeding the population for a penetration rate of 134.1%. These broad levels of internet and mobile penetration are fueling remarkable growth within the online entertainment market-from streaming services to digital content consumption. As digital infrastructure improves, Saudi Arabia is positioned to be a key driver of the region's growth in online entertainment, which continues to grow with a surge in demand for streaming services and mobile-based entertainment.

Competitive Landscape:

Key players in the market are focusing on enhancing user experiences through technological innovations, such as improved streaming quality and personalized content recommendations. They are investing in original content production to attract and retain subscribers while forming strategic partnerships to expand their global reach. Additionally, they are exploring new formats like VR, AR, and interactive content to engage users in unique ways. Efforts to improve accessibility through mobile-friendly platforms and regional content are further broadening their appeal across diverse demographics and markets. Many are also leveraging advanced analytics to understand user preferences and tailor offerings accordingly. These companies are also adopting flexible subscription models and integrating advertising to diversify revenue streams. In July 2024, ABEMA, a forward-looking television service, incorporated AI-driven multilingual subtitles into "ABEMA Live," an online live entertainment platform operating in Japan and Asia. ABEMA Live allows users to buy and view a range of pay-per-view entertainment from different nations.

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

• Amazon Web Services Inc. (Amazon.com Inc.)
• Charter Communications Inc.
• Comcast Corporation
• Google LLC (Alphabet Inc.)
• King.com Limited (Activision Blizzard Inc.)
• Meta Platforms Inc.
• Netflix Inc.
• Rakuten Group Inc.
• Sony Pictures Networks India Pvt. Ltd. (Sony Corporation)
• Spotify AB
• The Walt Disney Company
• Ubisoft Entertainment SA

Latest News and Developments:

• December 2024: Inspired Entertainment announced a partnership with Aristocrat Interactive to launch the first-ever online V-Lottery gaming suite for the Virginia Lottery. This suite will feature virtual sports games like football, basketball, and horse racing, enhancing the iLottery experience.
• October 2024: Caesars Entertainment launched Horseshoe Online Casino, a new online platform and mobile app aimed at seasoned casino players. Initially available in Michigan, it offers a high-quality, player-centric experience with exclusive games, promotions, and integration with Caesars Rewards. The platform features customizable promotions, classic Horseshoe branding, and a range of games across multiple categories.
• September 2024: Ultra Media & Entertainment Group announced a Rs 500 crore investment to launch two new OTT platforms, Ultra Play and Ultra Gaane, as part of its growth strategy. Ultra Play focuses on Hindi film classics, offering a vast library of over 2,000 films. The investment will support content acquisition, production, and marketing, aiming for a revenue of Rs 200 crore by FY 2024-25.
• December 2024: Discovery Inc has secured a distribution deal, guaranteeing that WBD's streaming platform Max will be accessible at no cost to every Spectrum TV Select subscriber. Customers will get access to Max With Ads, with an estimated value of USD 9.99/month and offering content from HBO, Warner Bros., DC, and much more.
• May 2024: Gordon Ramsay and Fox launched Bite, a global food brand and entertainment platform. The platform will offer a variety of food-related content, along with products and experiences.
• March 2024: Kustom Entertainment, Inc., a prominent company in live event marketing and concert production and a part of Digital Ally Inc., introduced Kustom Tickets, a groundbreaking online platform aimed at offering customers an easy and enjoyable ticket purchasing experience.

Online 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 online entertainment market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global online entertainment 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 assists 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 online 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.