The state of media and entertainment: Emerging trends, sector resilience

Our recently released 2025 Media and Entertainment Investment Monitor reveals a dynamic yet cautiously evolving landscape across venture capital (VC), private equity (PE), and mergers and acquisitions (M&A) within the US media and entertainment sector. Our spotlight on advertising technology (adtech) highlights its continuance as a long-term strategic pillar.

For media investors and industry stakeholders, this report offers critical insights into evolving investment patterns, sector resilience, and emerging opportunities shaped by technology and shifting consumer behaviors.

To explore detailed data, and forward-looking analysis, download the full 2025 Media and Entertainment Investment Monitor.

Key takeaways

Venture capital

Key takeaways highlight a notable slowdown in venture capital (VC) deal volume, with 2024 marking the lowest number of deals since 2015 at 319 transactions.

However, VC funding remains robust, consistently surpassing $1 billion annually, driven largely by later-stage deals as investors prioritize more mature companies with clearer profitability paths amid tighter liquidity. This shift reflects a broader trend toward risk mitigation in venture investing.

Private equity

Private equity (PE) activity, while experiencing a decline in deal volume since 2022, continues to deploy significant capital, exceeding $8 billion annually since 2020.

A strategic pivot toward minority stake investments now accounts for nearly half of PE deals, enabling firms to support growth without full buyouts.

Publishing and entertainment subsectors remain dominant targets, buoyed by strong brand equity and monetization potential.

Mergers and acquisitions (M&A)

M&A activity demonstrates resilience, averaging over 326 transactions annually from 2020 to 2024, with publishing leading the charge. The sector’s M&A landscape is broadening beyond traditional players, encompassing digital content platforms and niche studios.

Aging VC and PE portfolios contribute to a steady pipeline of assets ripe for acquisition, fueling industry consolidation and transformation.