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: Extending film/TV franchises into theme parks, live attractions, and branded travel has moved from an "adjacent opportunity" to a strategic necessity.

AI is being integrated across the entire media value chain, though it faces a "collapse in trust" regarding automated content or "AI slop".

For the first time, advertising has overtaken consumer spending as the primary revenue driver for the sector.

2026 M&E trends: simplicity, authenticity, and the rise of ... - EY

: While the U.S. remains the largest market, the fastest growth is seen in India, Indonesia, and Saudi Arabia , all with CAGRs above 7.5%. 2. AI: From "Slop" to Strategic Infrastructure

The entertainment and media (E&M) industry in 2026 is defined by a shift from simple content volume to audience intelligence, specialized technology, and authentic human connection . Global E&M revenue is on a steady trajectory to reach $3.5 trillion by 2029 , with a significant transition in 2026 as legacy models "cableize" and generative AI moves from experimentation to core infrastructure. 1. The Dominance of Advertising & Market Shifts

To combat "subscription fatigue," streaming platforms are moving toward a unified "one-stop-shop" model similar to traditional cable.

: Major platforms like Roku are expected to roll out bundled subscriptions that unify multiple services under a single payment and interface.