After a post-pandemic surge, the entertainment sector is gearing up for a more stable growth pattern in 2025. Streaming platforms are undergoing a transformation, live events are making a comeback, and the film industry is resuming a more regular release schedule. For marketers, this presents an opportunity to build audience loyalty through data-driven strategies and social media engagement.

Key Forecasts and Trends

According to a forecast from PwC, after a significant revenue spike in 2023, the entertainment and media industry is expected to grow at a calmer pace of 3.9% per year through 2028. Advertising is set to play a larger role in revenue growth, accounting for 55% during this period. PwC projects that advertising spend on entertainment properties will double between 2020 and 2028, reaching over $1 trillion in 2026. This indicates the growing importance of advertising in the entertainment sector.

The Film Industry's Recovery

The film industry faced setbacks due to the lengthy strikes of the Writers Guild and Screen Actors Guild in the past year. However, 2025 is expected to be a recovery year. Studios are trying to replicate the success of "Barbenheimer" with holiday releases like "Gladiator II" and "Wicked". While the jury is still out on whether these will create a lasting cultural impact, other films such as the final installment of the "Mission: Impossible" franchise, a new "Captain America" film, a new "Jurassic World" installment, and the reboot of "Fantastic Four" are expected to generate fan excitement.

John Partilla, CEO of Screenvision, believes that the "pipeline is back" and the movie business will be robust in 2025 and 2026. Despite the challenges, studios are constantly innovating to engage audiences and find new ways to drive ticket sales.

The Streaming Wars and Subscriber Churn

By the end of 2025, more than half (53.5%) of video subscription revenues in the U.S. are expected to go to streaming services. However, subscriber churn remains a concern. Sarah Harms, VP of ad marketing and measurement at Roku, notes that when a premium service announced a rate hike in 2024, its cancellations on Roku increased by 109% that day. Streaming services need to get creative to address this issue by offering more choice, ease, and great content.

Companies will experiment with pricing tiers, bundles, and incentives to target cost-conscious consumers. Roku's Harms also highlights the popularity of the Roku City screensaver as an advertising platform. Streaming services are continuously exploring new ad formats that integrate marketing messages seamlessly into programming.

Live Events and Community Engagement

Live events are climbing back to pre-Covid levels of attendance and fandom. Taylor Swift's "Eras Tour" demonstrated the power of large events. Marketers need to enhance the overall experience of live events by offering exclusive value and engaging communities.

Russell Wallach, global president of Live Nation, emphasizes the importance of engaging subcultures and creating meaningful experiences. Brands can do this through VIP access, immersive activations, and exclusive storytelling. Social media will continue to play a crucial role in shaping live events and turning them into global conversations.

Influencers are also becoming more important in live event marketing. Gen Z trusts influencers more than traditional media, and they can help amplify the reach and impact of events. Brands are now integrating community-building opportunities before, during, and after events, and 85% of Gen Z consumers expect live events to have a social component.

Surrendering IP and Building Fandom

Entertainment companies are learning to allow consumers to engage with their intellectual property on social media while protecting it. The success of "Wicked" release shows the power of encouraging passionate fandom.

Warren Godridge, founder and CEO of drive21, believes that live events must offer exclusive value to stay competitive. Marketers need to tap into social media communities and encourage user-generated content to reach a wider audience. Ramaa Mosley, founder of Gen Z research agency Adolescent Content, notes that successful events in 2025 will integrate community-building throughout the event lifecycle.