Insights into the Global Entertainment and Media Forecast 2024-2028: Highlights for Hong Kong
North America, Western Europe, Central Europe, the Middle East & Africa, Latin America, and Asia Pacific comprise the 53 territories that are represented in the outlook. The 13 market segments analyzed are as follows: augmented reality (AR) and virtual reality (VR), esports and video games, home video and traditional TV, non-fungible tokens (NFTs), Metaverse, out-of-home advertising (OOH), over-the-top media services (OTT), books, magazines and newspapers, podcast, music and radio, TV advertising and internet advertising, internet access and data consumption, cinema, and business-to-business (B2B).
According to the analysis, E&M revenue is expected to increase in 2028 to USD 3,421 billion globally and USD 14 billion in Hong Kong, with a compound annual growth rate (CAGR) estimated at 3.91% worldwide and 2.06% in Hong Kong respectively. E&M growth in Hong Kong is predicted to stay consistent between 2023 and 2028, while the business-to-business segment has been the primary driver of Hong Kong E&M’s healthy development since the post-COVID recovery began in 2022.
A Global and Hong Kong Perspective on Entertainment & Media (E&M)
Taking advantage of expansion prospects in a changing context, the Entertainment & Media (E&M) sector regained equilibrium in 2023, with global revenue rising 5% to USD 2.8 trillion. The E&M industry will expand at a more subdued 3.9% CAGR during the following five years, reaching USD 3.4 trillion in 2028. Hong Kong’s E&M revenue is projected to exceed USD 14 billion in 2028, with a CAGR of 2.06% from 2023 to 2028.
Generative Artificial Intelligence (GenAI) holds promise for increasing productivity and efficiency while enabling innovative business practices within and between various industries. In contrast to 45% of CEOs overall, 57% of E&M CEOs stated that their present business strategy would not be sustainable in ten years. The secret to snatching up a piece of the expanding revenue streams will be business model reinvention (BMR), investing in gaming, advertising, high-growth regions and market niches, and rethinking business plans.
Hong Kong’s E&M revenue is expected to be influenced by consumer spending, with a trend aligning with the global average. The rise of digital platforms and streaming services has led to a preference for digital content over traditional media. As a result, physical media sales have decreased due to Hong Kong’s media and entertainment companies adopting subscription-based business models. Consumers now demand personalized and interesting experiences, necessitating companies to provide excellent services and content to attract clients and boost sales.
OOT Video
OTT meaning stands for over-the-top, initially named in reference to devices that go over a cable box to give the user access to TV content. On OTT platforms, content is delivered via an internet connection rather than through a traditional cable/broadcast provider.
From 2023 to 2028, Hong Kong’s OTT market is anticipated to grow at a 5.7% CAGR till it reaches USD 491 million in 2028. Over the past two years, the Hong Kong OTT industry has grown quickly, and in 2023 it reached USD 371 million. Local offerings like ViuTV and MyTV Super compete with Netflix, Disney+, Amazon Prime Video, and Apple TV+ in the fiercely competitive streaming industry. OTT service providers began releasing apps in tandem with live sports coverage, including the English Premier League and the UEFA Champions League.
In Hong Kong, subscription streaming services accounted for 83.87% of all over-the-top (OTT) income in 2023 and will continue to grow to 85.13% in 2028. For 2023–2028, subscription video-on-demand (VOD) revenue is expected to increase at a compound annual growth rate (CAGR) of 6.01%, which is equivalent to 5.75% of the entire online advertising market.
Business-to-Business
Hong Kong’s compound annual growth rate (CAGR) in the business-to-business (B2B) category is estimated higher than global and Asia Pacific averages. In the post-COVID era, B2B in Hong Kong is predicted to rise at a 3.55% CAGR, in contrast with 1.86% CAGR globally, reaching USD 969 million in revenue by 2028. As digital advertising takes over as the primary medium, printed media growth continues to lag below average.
In 2023, Hong Kong’s B2B market was the world’s fastest-growing, rising 21.4% year on year to USD 814 million, with the trade shows market accounting for over half of that total, indicating a delayed COVID-19 pandemic recovery. The trade shows market has experienced a slow comeback after the pandemic.
Revenue reached USD 447 million in 2023, representing a 45.9% increase. The revenue from Hong Kong trade shows will grow at a CAGR of 5.5%, reaching USD 585 million by 2028. Informa and RX Group will host 17 events in Hong Kong in 2024, including Aero-Engines Asia-Pacific, Retail Asia Conference & Expo, and MIPIM Asia Summit.
Internet Advertising
Hong Kong’s advertising will be driven by digital, and the conversion trend is consistent with Global (excluding Mainland China). As a result of the shift from traditional to digital advertising, Hong Kong’s internet advertising market is expected to reach USD 1.9 billion by 2028, up from USD 1.6 billion in 2023, with a 3.7% CAGR. The rise of 5G applications and usage is driving the digital advertising industry towards mobile, as people become more accustomed to digital platforms and on-demand information, prompting the media and entertainment sectors to adapt their products.
By 2028, Hong Kong’s paid search advertising will have grown at the fastest rate among online advertising, accounting for 32.65% of the market. Revenues from video advertising will increase at a compound annual growth rate (CAGR) of 11.20% between 2023 and 2028, compared to 9.46% for the entire online advertising market. Revenues from paid search online advertising are expected to increase at a compound annual growth rate (CAGR) of 6.8% between 2023 and 2028, compared to 3.69% for the entire online advertising market. Retail paid search is expected to drive a 10.06% growth in retail paid search internet advertising from 2023 to 2028, driven by e-commerce acceleration and online purchasing. Customers are becoming more open to interacting with internet content, contributing to this boom.
Live Music & Traditional Media
The live music industry in Hong Kong has recovered to its pre-COVID level. After the pandemic, Hong Kong’s live music industry has flourished and is predicted to generate USD 201 million in 2024, a significant increase from the USD 121 million recorded in 2019. This amount should increase further in the upcoming years, reaching USD 216 million in 2028 at a compound annual growth rate (CAGR) of 2.34%.
Traditional media’s share of Hong Kong’s advertising revenue is steadily declining, while digital advertising now controls most of the industry. As digital media surpasses the trend, printed periodicals are anticipated to experience a fall. By 2028, Hong Kong’s TV advertising income is expected to reach USD 359 million at a 0.8% CAGR.
Concerning the growth in Hong Kong’s TV advertising revenue, by 2028, it is anticipated that total broadcast TV advertising income will have grown to USD 359 million at a compound annual growth rate of 0.84%. TV advertising revenue, which is anticipated to make up 63.9% of all traditional TV revenue by 2028, is the market’s main driver. This tendency is a result of local companies and businesses investing more in advertising, as well as the continued reliance on TV to reach large audiences.
Generative AI
Generative AI revolutionizes media and entertainment by enabling rapid prototyping and improving video editing, music composition, and scriptwriting. It also allows for customization, cost efficiency, and increased audience engagement. This technology is expected to significantly expand the global Media & Entertainment market, potentially boosting business revenue.
Generative AI plays a crucial role in Media & Entertainment, enhancing script and story development, animation and visual effects, dynamic advertising, music generation, and interactive storytelling. It simplifies the process of creating visual effects, produces tailored advertising using viewer data, and creates original songs for specific moods or genres.
Generative AI is revolutionizing content production in TV, music, OTT, film, and video games by transforming 2D photos or videos into animated 3D models. Examples include Google’s Veo and OpenAI’s Sora. Chinese platforms like Alibaba, Tencent, and Baidu are implementing virtual humans for livestream sales and news reporting. However, product quality will determine consumer acceptability and demand creation.
Generative AI, particularly the release of ChatGPT, has sparked a surge in interest in the AI field and in the content production industries, especially consumer books. The tool’s potential efficiency benefits are expected to attract struggling businesses like book publishers and literary magazines, as they face financial difficulties.
