2025 Media & Entertainment Forecast: What’s Next for Content Providers, Live Entertainment & Sports

2025 is already positioned to be a major transformative year within the media and entertainment (M&E) industry. Several key trends are expected to shape the landscape for content providers, live entertainment and sports. In 2024, we saw continued consolidation in the subscription video on demand (SVOD) content provider space, the hype around artificial intelligence (AI) build, as well as a more competitive market and increased costs to create and acquire content.

In the coming year, we foresee that these challenges will persist while others will arise as companies continue to focus on cost optimization while growing revenue, and innovative technology becomes increasingly ubiquitous. The companies that adapt to these trends swiftly and effectively will find themselves at the forefront. Here’s a snapshot of what to expect in 2025:

Content Providers

1. More Mergers & Divestitures: The consolidation trend is set to continue as companies seek to bolster their content libraries and streaming audience. There was an uptick in merger and acquisition (M&A) announcements last year, specifically among the major players. High-profile mergers, such as Skydance-Paramount and divestitures like Comcast-NBCU and Lionsgate-Starz, demonstrate the industry's push toward focusing on core competencies and creating more comprehensive offerings to compete in an ever-saturated market.
   
   For the larger content providers, this trend may mean splitting out specific brands for divestiture, targeting new brands for acquisitions, or a mix of both. These strategic moves not only expand their reach by diversifying distribution methods and expanding content libraries for their subscribers, but also streamline operations, reduce competition and protect their remaining assets.
   
   
2. Cost Optimization Measures: Facing immense pressures to boost profitability and remain competitive, major players like Paramount, Warner Bros., Discovery (WBD) and Disney are adopting significant cost optimization strategies, including technology rationalizations, re-orgs and reduction in workforce. The focus is on decreasing expenses by implementing strategies such as Movielabs 2030 (which minimizes asset storage), virtual production (which cuts down on manual production costs while increasing volume) and utilizing more cost effective resources across organizations. This trend highlights the industry's shift toward working smarter with fewer resources and without compromising quality and output.
   
   
3. Usage of AI: There’s been a ton of hype these last couple of years around AI. That said, AI is transitioning from experimental to table stakes. More content providers are formalizing the use of AI for a variety of applications, including enhancing operational efficiency within:
   
   • The media supply chain (e.g., contextual search, metadata tagging, localization)
     
   • Marketing activities (e.g., campaign optimization)
     
   • Customer support enhancements (e.g., virtual agents and assistants)
     
   • Content personalization for better consumer engagement (e.g., personalized promotions and ads)
   • This technology is becoming a cornerstone in the quest to offer tailored and interactive user experiences. For example, Disney has recently created a new business unit, the Office of Technology Enablement, to explore opportunities and risks associated with the use of AI and other emerging technologies. Other content providers are following a similar model and building out similar dedicated AI organizations.
     
     
4. Increase in 'Bundling' Packaged Offerings: As consumers face subscription fatigue, making the sign up process easier is a key focus while also giving consumers what they want, when they want it. For instance, telecom providers like Charter and Comcast are packaging their services together with streaming providers to offer greater value through bundles. Additionally, content providers themselves now offer bundles for their platforms (e.g., Disney+, Hulu, ESPN+) and cross-company bundles (e.g., Disney+, Hulu, Max). This trend reflects an adaptative strategy to keep their offerings appealing and convenient, thereby retaining and attracting customers in a competitive market.
5. Sophisticated Data Monetization: Data is a gold mine for content providers, and its monetization is expected to reach new heights by 2025. The insights gained from user data are fueling more sophisticated advertising models (e.g., The Disney Audience Graph, powering multiple solutions and capabilities). Furthermore, these insights are driving innovative features that not only enhance content discovery, but also seamlessly integrate opportunities for viewers to purchase products directly while streaming.

Live Entertainment

1. Achieving AI Efficiencies: AI is set to revolutionize the way live entertainment providers operate. By harnessing AI capabilities, providers are expected to drastically improve the "cost per ticket." AI will enable more personalized fan experiences and enhance loyalty through tailored recommendations, optimized venue management and dynamic pricing models.
   
   For example, Taylor Swift’s use of AI in her tours ranges from machine learning tactics for fan safety to AI-driven analytics tools for adjusting her content to meet fans’ expectations. AI won’t replace people, but it will accelerate their day-to-day work and help them focus on more complex tasks. AI enablement has been an underlying accelerator to operators’ ability to mitigate fraud, authenticate and grow fan bases, and expand to diversified revenue opportunities.
   
   
2. Monetizing Fan Engagement: The future of live entertainment includes turning passive fans into active and engaged participants. Providers are exploring new revenue streams through experiential and immersive offerings such as gaming, augmented reality (AR), virtual reality (VR) and various upselling opportunities. They appeal to the fan who is likely to spend on concert tickets and will also spend for exclusive member-only specials, merchandizing and other services. Fans have been known to pay more per ticket to watch the artist or team they love. These technologies enhance the fan experience and open doors to innovative ways of fan engagement and monetization.
   
   
3. Focus on Event Internationalization: With a growing global fanbase, live entertainment providers are gradually expanding into new markets, increasing revenue and fostering partnership opportunities. Notable examples include the 2026 FIFA World Cup in the New Jersey Meadowlands Stadium and the 2028 Olympics in Los Angeles. Both these events anticipate attracting a diverse international audience and boosting global collaborations.
   
   Tapping into local artists and catering to fans specific to the region open opportunities in other revenue-producing segments like ticketing services and music venue operations. This is exemplified in Live Nation’s acquisition of the MEO Stadium in Portugal, an investment made not only to appeal to the local culture’s preference for live music, but also to monetize MEO’s ticketing platform that has reduction in access prices to the arena.
   
   
4. Brands Expanding into Live Experiences: Recognizing the power of live interactions, many brands traditionally not associated with live entertainment are venturing into this space. Companies like Netflix and Mattel are now creating branded live experiences — the Netflix House and Mattel Adventure Park. On top of that, you see traditional live entertainment companies providing more focused experiences such as Universal Kids Resort.
   
   These trends reflect an effort to connect more deeply with consumers, giving them unique, experiential opportunities that extend beyond traditional media or toy products. The “experience economy,” where memorable experiences are unique and personal to everyone, is what brands are capitalizing on to keep the connection with their loyal followers.

Sports

1. Increased Sports Streaming: Traditional cable is taking the backseat as streaming giants like Amazon and Netflix dive into the sports broadcasting arena. Deals such as Amazon and Netflix's rights to National Football League (NFL) games and high-profile events like the Tyson versus Paul boxing match underscore this shift. This trend is driven by the consumer preference for on-demand and accessible viewing, which streaming platforms are uniquely positioned to offer.
   
   However, streaming platforms have much to learn from broadcast in terms of the quality of service and experience fans have come to expect. For this reason, broadcast quality is the standard that digital streamers are striving to emulate, which is an opportunity for service providers.
   
   
2. Data, Analytics & AI in Player Training & Event Tracking: Technological advancements are heavily influencing athlete training regimes. Wearables and training apps powered by AI are becoming commonplace, providing personalized data and insights that help athletes optimize their performance. For example, the National Basketball Association (NBA) uses AI in sports for player performance analysis and strategic plays. Tennis, football and other sports leagues employ AI-powered systems like Hawk-Eye for ball tracking and automated line-calling to assist referees. These technologies enhance physical training and focus on injury prevention and recovery, tailoring regimes to the unique needs of each player.
   
   
3. Focus on Omnichannel Fan Engagement: This includes integrating sports betting, real-time offers, and sophisticated tracking and analytics to create a more engaging and interactive experience for fans across various platforms. For example, AI in sports is powering real-time stats and game highlights in the NFL's official app. Additionally, some apps have real-time shoppable experiences. This strategy boosts fan loyalty and opens new revenue streams for sports organizations.
   
   
4. Modernizing Sporting Venues & Technology Democratization: Sporting venues are undergoing significant upgrades to incorporate advanced technologies like 5G, enhancing the in-stadium experience for attendees and improving connectivity. In fact, it is estimated that investment in the smart stadium market is expected to increase by $50.7 billion over the next four years, a rise of 30%. A perfect example is the newer $5 billion SoFi Stadium in Inglewood, California. It features Samsung’s 70,000 square-foot screen — the largest screen in a sports venue — to broadcast fan interactions, flash QR codes and show enhanced replays.
   
   Furthermore, sports technology is no longer relegated to professionals with buying cache. Advanced player technology is now available and used by student athletes themselves in availing marketing opportunities or influencing consumers in social platforms. There is a leveling of the playing field, allowing smaller entities and individuals to capitalize on their brand, an advantage previously reserved for top-tier professionals.  
   

Brief Summary

We will see several changes across the content providers, live entertainment and sports landscapes throughout 2025 and beyond. The rapid rise of technological innovation is leaving consumers craving dynamic, personalized experiences across all three segments, forever changing how they interact. These shifts will lead to broadening revenue and efficiency opportunities and additional competitors. Companies willing to embrace and address these dynamic market shifts will position themselves as M&E leaders going forward.