Virtual reality remains on a significant growth trajectory: Global VR content revenues reached $1.8 billion in 2020, up 31.7% from 2019, according to PwC's latest Global Entertainment & Media Outlook report, which the company published Monday. VR content revenues will continue to grow around 30% annually, and reach $6.9 billion by 2025, according to the report.
This makes VR the fastest-growing media segment, ahead of online video, podcasts, esports and gaming. However, in absolute terms, VR still remains a relatively small market. PwC expects console, PC and casual gaming to reach annual revenues of $194.7 billion in 2025.
PwC predicts that revenue from physical game sales will fall from 48.2% of the global console market to just 35.5% in 2025.
PwC's latest report not only looked at revenue opportunities for individual media markets, but also the behind-the-scenes shifts caused by changing media consumption habits. One conclusion: We'll still see a bunch of mega media M&A deals in the coming years, despite increased regulatory scrutiny.