GenAI Market Growth in Media & Entertainment

The rise of generative AI (GenAI) is among the most transformative trends in digital media. It is reshaping how content is created, distributed, and monetized and driving a massive expansion in the media & entertainment AI sector. For businesses working on entertainment apps, this creates a golden opportunity to embed cutting-edge capabilities into their platforms.

Rapid Market Expansion: How Big Is GenAI’s Impact

The global generative AI in media and entertainment market, valued at approximately USD 1.97 billion in 2024, is projected to grow at a compound annual growth rate of around 28 percent, reaching USD 2.53 billion in 2025 and escalating to USD 6.73 billion by 2029.
Broader definitions of AI in media and entertainment place the overall market at USD 25.98 billion in 2024, with projections soaring to USD 99.48 billion by 2030 at a 24.2 percent CAGR.

This double-digit growth reflects accelerating cloud adoption, AI-powered content workflows, and rising demand for personalization in platforms across film, gaming, VR/AR, music, and live broadcast.

Key Growth Drivers: From Text to Virtual Reality

GenAI’s applications in media include:

• Text-to-image and video generation

• Automated music and sound design

• 3D modeling and animation synthesis

• Intelligent summarization and indexing

Of these, text-to-image generation dominates with approximately 30.8 percent of market revenue (~USD 606 million in 2024) and continues to grow rapidly. Meanwhile, VR/AR content generation is projected to be the fastest-growing segment through 2029, driven by immersive content demand.

What This Means for Entertainment App Development ?

These trends are reshaping expectations for any platform handling media content. Whether you are building a streaming app, creator tool, or immersive content sandbox, users now expect AI-native features such as:

• Automatic metadata generation and indexing

• Smart summaries and scene-level search

• AI-assisted content creation like images, clips, or animations

• Personalized recommendation engines powered by generative models

Integrating these capabilities requires strategic app architecture and cloud-native backend systems precisely the kind of work a skilled entertainment app development company provides.

Growth Attributed to Streaming and Social Platforms

According to Deloitte and PwC data, social video and connected TV advertising continue to fuel the E&M industry. Video advertising alone is expected to maintain 20 percent year-over-year growth in 2025, making AI-powered ad tools a hub of innovation.

Moreover, PwC forecasts overall entertainment & media revenue rising from US$2.9 trillion in 2024 to US$3.5 trillion by 2029, driven in part by AI-led efficiencies and monetization models.

Why Entertainment App Development Needs GenAI Now ?

As AI content creation becomes standard, development teams must move beyond basic UX and video playback. They now need:

• APIs for generative asset creation

• AI pipelines for indexing and summarization

• Vector search and semantic search for episode or clip discovery

• Dynamic recommendation and personalization systems

The rise of GenAI pushes brands to collaborate with developers capable of building AI-first app workflows, from design to deployment.

The Opportunity for App Builders

For ambitious media platforms, investing in AI integration early delivers both technical differentiation and strategic advantage. Features like auto-captioning, content repurposing, contextual search, and recommendation engines improve retention, engagement, and content ROI.

A specialized entertainment app development company can enable:

• End-to-end GenAI integration (from video upload to discovery)

• Cloud-first scalability to support AI workloads

• UI/UX optimized for smart discovery, not passive browsing

• Training models that respect IP and content ethics

Final Word: GenAI Is The New Heartbeat of Media Apps

Generative AI is no longer a novelty; it is the foundation of modern media platforms. With projections like USD 99 billion for AI in media and entertainment by 2030 and sustained 28 percent annual growth, app developers must rethink how they handle content and user experience.

To build next-gen platforms that feel intuitive, creative, and deeply personalized, media brands must partner with an entertainment app development team that understands AI’s role and integration. The growth is here. The technology is accessible. The time to build intelligently is now.