Entertainment Industry Sees Shifts in Consumer Habits and Technological Advancements in 2026

By Brayan Juma — Chief Editor, GCHAM News

The entertainment industry is undergoing significant changes in 2026, driven by evolving consumer habits and rapid technological advancements. The rise of streaming services has continued to disrupt traditional television and movie distribution models, with many consumers opting for on-demand content over linear programming.

According to recent reports, the global streaming market is projected to reach $184.2 billion by 2027, growing at a compound annual growth rate (CAGR) of 18.1% from 2020 to 2027. This growth is largely attributed to the increasing adoption of streaming services, particularly among younger generations.

In addition to the rise of streaming, the entertainment industry is also seeing a surge in demand for immersive experiences, such as virtual reality (VR) and augmented reality (AR). These technologies are being used to create interactive and engaging experiences for consumers, from VR concerts to AR-powered movie promotions.

The shift towards immersive experiences is also being driven by advancements in gaming technology. The global gaming market is expected to reach $190.5 billion by 2025, with the rise of cloud gaming and cross-platform play contributing to its growth.

Furthermore, the entertainment industry is becoming increasingly focused on diversity and representation. There is a growing demand for content that reflects the diversity of the global population, with many consumers seeking out stories and characters that resonate with their own experiences.

In response to this demand, many entertainment companies are prioritizing diversity and inclusion in their content creation and hiring practices. This includes initiatives such as diversity training programs, inclusive casting practices, and the development of content that showcases underrepresented voices and perspectives.

Overall, the entertainment industry in 2026 is characterized by a focus on innovation, diversity, and consumer engagement. As technology continues to evolve and consumer habits shift, the industry is likely to see even more significant changes in the years to come.

Frequently Asked Questions

1. What is driving the growth of the streaming market? Reuters reports that the increasing adoption of streaming services, particularly among younger generations, is a major factor.
2. How is the entertainment industry using immersive technologies like VR and AR? Bloomberg explores the various ways in which these technologies are being used to create interactive and engaging experiences for consumers.
3. What is the projected size of the global gaming market by 2025? According to Reuters, the global gaming market is expected to reach $190.5 billion by 2025.
4. How is the entertainment industry prioritizing diversity and inclusion? Bloomberg discusses the various initiatives being implemented by entertainment companies to promote diversity and inclusion in their content creation and hiring practices.
5. What are some of the key trends shaping the entertainment industry in 2026? Reuters identifies the rise of streaming, the growth of immersive technologies, and the increasing focus on diversity and representation as major trends in the industry.

Image: Entertainment Industry Trends