Online Entertainment Market Report 2026

The online entertainment market size has grown rapidly in recent years. It will grow from $443.82 billion in 2025 to $509.58 billion in 2026 at a compound annual growth rate (CAGR) of 14.8%. The growth in the historic period can be attributed to growth of broadband internet, increasing smartphone penetration, rise of social media platforms, demand for on-demand video content, expansion of online gaming communities.

The online entertainment market size is expected to see rapid growth in the next few years. It will grow to $879.44 billion in 2030 at a compound annual growth rate (CAGR) of 14.6%. The growth in the forecast period can be attributed to adoption of 5g networks, advancement in ai-driven content recommendation, rise of virtual reality experiences, growth of subscription-based models, expansion of esports and cloud gaming. Major trends in the forecast period include personalized content streaming, social media integration, cloud gaming adoption, virtual event engagement, interactive user experiences.

The growing internet penetration among consumers is expected to drive the expansion of the online entertainment market. Internet penetration refers to the percentage of the population in a specific geographic area (such as a country or region) that has access to and uses the internet. This penetration is increasing due to the rising affordability of internet-enabled devices and the broader availability of high-speed internet infrastructure. Greater internet penetration enhances access to online entertainment by expanding the reach of audiences and enabling seamless content consumption across various platforms. For example, in February 2023, Meltwater, a Netherlands-based software company, reported that the number of internet users in the UK grew by 224 thousand (0.3 percent) from 2022 to 2023. As a result, the increasing internet penetration among consumers is driving the growth of the online entertainment market.

Key players in the online entertainment market are concentrating on developing technologically advanced solutions, such as cloud gaming, to provide a seamless and scalable gaming experience. Cloud gaming allows users to stream and play video games on various devices without the need for high-end hardware, by using remote servers to process the games. For example, in March 2023, GTPL Hathway Limited, an India-based telecommunications company, introduced GTPL Buzz. This customer application aims to enhance the user experience by offering a range of services. It includes features like "TV Everywhere," allowing users to watch live TV on their mobile devices, "Cloud Gaming" with the launch of Blacknut Cloud Gaming, and "Distro TV," which streams content in multiple languages. Available on both Android and iOS, the app enables users to manage their accounts, update services, and enjoy uninterrupted access to entertainment. Furthermore, it integrates GTPL's AI-powered chatbot, GIVA, to enhance customer support. The app is designed to increase the convenience and flexibility of GTPL's services for its broad customer base.

In January 2024, Evision Software Solutions Private Limited, a UAE-based media and entertainment streaming service, entered into a partnership with Disney Star to broaden entertainment offerings across the Middle East and North Africa (MENA) region. Through this collaboration, Evision plans to provide an extensive selection of South Asian TV channels and video-on-demand content, including Star Plus HD, Asianet Middle East, Star Gold, and Star Vijay, on its platforms and services, giving audiences enhanced access to premium entertainment. JioStar India Private Limited is an India-based media and entertainment company that offers a diverse range of TV channels and streaming content.

Major companies operating in the online entertainment market are Tencent Video, Netflix Inc., Paramount+, Spotify AB, Hulu, TikTok Pte. Ltd., Disney+, Apple Music, HBO Max, Amazon Prime Video, iQIYI, Bilibili, Roku Inc., Pandora Media LLC, DAZN, Deezer, Crunchyroll LLC, Twitch, Sling TV, Peacock, SoundCloud, Vevo LLC, Tidal, Vudu, Sony Crackle.

North America was the largest region in the online entertainment market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the online entertainment market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the online entertainment market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The online entertainment market consists of revenues earned by entities by providing services such as streaming services, video-on-demand, music streaming services, and spoken-word entertainment services. The market value includes the value of related goods sold by the service provider or included within the service offering. The online entertainment market also includes sales of streaming devices, home assistants, bluetooth speakers, and gaming monitors. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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