Ireland’s Entertainment and Media industry is set to grow by 2.9% annually over the next three years, reaching €7.6 billion in 2028, according to the latest outlook by PwC.
The analysis includes sectors such as; connectivity services, internet advertising, music, radio and podcasts, cinema, newspapers, consumer magazines and books, out-of-home advertising, Video on Demand, traditional TV, and video games.
The report finds that despite facing economic headwinds, technological disruption and increased geographic and industry competition, the industry in Ireland demonstrated resilience and growth last year.
Total Irish revenues in 2023 rose 4.8% to €6.6 billion compared to 2022.
However, the projected growth in the Irish market to 2028 of 2.9% lags the global forecast of 3.9%.
PwC says this discrepancy is primarily due to the slower growth observed in the video gaming segment.
Amy Ball, Partner, PwC Ireland Entertainment & Media Practice, said the industry in Ireland is showing great success and opportunity on the global stage.
“Ireland has supported the industry over the years. For example, during 2024 we saw the cap on eligible spending on film projects raised from €70m to €125m and the Section 481 film tax credit was also extended to the end of 2028.”
She said, as the industry continues to grow, market players face both risks and opportunities.
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“Shifts in consumer preferences, and uncertainty around the continued impact of digital transformation and new and emerging technology such as Generative AI, are inspiring a wave of business model reinvention,” she said.
“Leveraging the power of AI and Gen AI will be critical. If market players are to gain their share of the growing revenue pools that the report identifies, they will have to reimagine how their company creates, delivers, and captures value.
She said as consumers increasingly consume content online, “companies will also need to diversify their product-offerings and continue to connect with consumers on the platforms where they spend more of their time.”
The three key drivers for Ireland’s Entertainment & Media industry growth are mobile internet services, internet advertising and Video-on-Demand.
However, as streaming service usage and consumer uptake is rising, service-providers face increased competition and challenges in getting consumers to pay more for digital goods and services.
The report shows tha Irish subscriptions to VOD services are expected to rise to 2.6 million in 2028 from 1.8 million in 2023. The Irish average revenue per VOD subscription is expected to show slow growth of 1.7% over the forecast period, rising from €93.23 in 2023 to €101.64 in 2028.
Total video games revenue in Ireland reached €465m in 2023 and will exceed €545m by 2028.
But Ireland’s traditional gaming sector is expected to begin shrinking in 2026, ultimately falling to €234m. This is largely due to a sharp reduction in physical console games revenue.
By comparison, social and casual gaming is expected to grow steadily, rising from €198m in 2023 to €283m in 2028. Most of this revenue derives from the rapid growth of in-app games advertising revenue, which is expected to almost double from €59m in 2023 to €110m in 2028.
Ireland’s cinema industry is forecasted to grow 5.6% over the forecast period, reaching €145m by 2028. The number of cinema admissions in Ireland is expected to grow from 12 million in 2023 to 14.3 million in 2028.
Ireland’s total music and radio revenue was worth €465m in 2023 and is forecast to rise at a 2.7% rate to total €530m by 2028.
Ireland’s Music Revenue accounted for €354m in 2023, with 69% of that made up of live music revenue.
The report underscores the importance of in-person, real-life, tech-powered experiences such as live music and cinema as crucial growth industries.
In 2023, movie box office and music ticket sales represented 38.6% of the net increase in consumer spending worldwide. Driven by large events such as musicians’ world tours, global live music revenues rose by 26%, accounting for more than half of the music market.
Last year saw GenAI explode into the public consciousness and start to filter into products that are used by hundreds of millions of users every day, specifically in Large Language Models and Image Generation.
The PwC 2024 CEO Survey found that 63% of Irish CEOs expect GenAI to significantly change the way their company creates value in the next three years.
Conor Forde, Director, PwC Ireland Entertainment & Media Practice, said: “So far, many of the applications of Gen AI in the E&M industry have focused on speed and efficiency. As we look ahead, the industry will have to focus on how GenAI can lead to greater value creation in a safe and secure way and in compliance with the new EU AI Act through experimenting, iterating, and scaling new solutions and processes.”