BEIJING: Total revenue of China’s entertainment and media industries is expected to reach around US$480bil (RM2.17 trillion) by 2027, with a compound annual growth rate (CAGR) of more than 6% till 2027, higher than the global average of 3.5%, a new report from global consultancy PwC has estimated.

       Internet advertising, video games and e-sports sectors are going to be the main drivers of growth in the entertainment and media industries in China, while other sectors such as film and virtual reality will likely witness robust growth in the coming years.

       The PwC report said the revenue of China’s Internet advertising market will likely exceed US$146bil (RM661bil) in 2027, with a CAGR of 9%, as new formats for advertising like short videos and livestreaming have brought fresh growth streams to Internet advertising.

       China’s Generation Z – those born between the mid-1990s and the early 2010s – are gradually becoming the mainstream consumers, and prefer to watch personalised advertising.

       Internet advertising has gained an upper hand over traditional advertising.

       The wide coverage of 5G networks also provides advertisers with a mature, stable and enormous end-user market, the report stated.

       Notably, spending on mobile Internet advertising is on course to dominate the growth of China’s Internet advertising industry, with its share in the total Internet advertising revenue predicted to increase to 84% by 2027.

       The application of artificial intelligence (AI) technology will likely further enhance user experience and further improve the production and dissemination of advertising, given that major technology companies are investing in and developing tools such as ChatGPT-like chatbots and AI-generated content. — China Daily/ANN