Online entertainment market seen hitting $1.5 trillion by 2035

By AI, Created 1:27 PM UTC, May 28, 2026, /AGP/ – Allied Market Research says the online entertainment market was worth $284.8 billion in 2023 and could climb to $1.5 trillion by 2035. The report points to video, advertising, smartphones and North America as the leading segments, with growth tied to streaming, social media and wider internet access.

Why it matters: - The online entertainment market is moving from a fast-growing category to a much larger global digital economy. - A rise to $1,500.6 billion by 2035 would reshape spending across streaming, gaming, digital advertising and device ecosystems. - The forecast suggests companies tied to content, ad tech and smartphones could benefit from continued consumer shift to internet-based entertainment.

What happened: - Allied Market Research said the online entertainment market was valued at $284.8 billion in 2023 and is projected to reach $1,500.6 billion by 2035. - The firm estimated a 15% compound annual growth rate from 2024 to 2035. - The report defines online entertainment as internet-based entertainment on smartphones, smart TVs, laptops and tablets. - The report is available through a sample PDF.

The details: - The market is segmented by form, revenue model, device and region. - Video led the market in 2023 and is expected to keep its lead during the forecast period. - Social video platforms such as YouTube, Instagram and Facebook are fueling demand for video content. - The advertisement revenue model held the largest share in 2023 and is expected to remain dominant. - Subscription revenue remains widely used because of pricing flexibility, customer retention, distribution reach and steady cash flow. - Smartphones were the leading device category in 2023 and are expected to stay ahead. - Large-screen phones are boosting video watching, music streaming, web browsing and HD gaming. - India and China are emerging as major growth markets for smartphone-driven online entertainment. - India’s smartphone sales rose to 231.5 million in 2022 from 102.4 million in 2016, according to the India Brand Equity Foundation. - North America led the market in 2023 and is expected to keep that position. - The region’s growth is tied to broadband access, digital literacy and adoption of new technology. - Over-the-top media services have gained traction in North America because of original content, convenience and smartphone compatibility. - The report also cites growth in smart displays, smart speakers and cross-platform gaming. - Key companies profiled include Amazon Web Services, Netflix, Google, Facebook, Tencent, Sony, King Digital Entertainment, Spotify, Rakuten and CBS. - Allied Market Research offers an inquiry-before-buying page for the report.

Between the lines: - The report’s strongest growth thesis rests on ad-supported video and mobile-first consumption, not just paid subscriptions. - Developing markets appear important because cheaper internet and rising smartphone ownership expand the pool of online viewers and gamers. - North America’s lead suggests the market is still being shaped by infrastructure quality and high digital adoption, not only content volume.

What’s next: - Allied Market Research expects video, advertising, smartphones and North America to keep leading through 2035. - Online content producers and distributors may lean further into OTT platforms, analytics and targeted advertising. - Market players are using product launches and business expansion to defend share and improve profitability. - The report says mergers, partner selection, licensing strategy and competitive planning will be key use cases for buyers.

The bottom line: - Online entertainment is moving toward a much larger, ad-driven and mobile-first market, with streaming and digital video at the center of growth.