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Why Online Entertainment Is Becoming a Serious Digital Business

The digital entertainment economy in North America has moved into a new stage, where the traditional giants (film, television and music) occupy the same spaces as creators, streaming platforms, online casinos, game developers, social media and more. While the term is broad, this is no niche category – online entertainment encompasses some of the fastest growing business sectors in the world.

Video streaming platforms alone generated $100 billion in the US in 2025, and online casinos – let alone sports betting – made $10 billion over the same year. It’s not only revenue figures that matter however, because increasingly the digital entertainment sector’s spend supports employment, innovation and infrastructure in a wide range of fields.

Revenues are Huge Across the Sector

Online entertainment is a broad category, so estimates vary as to the size of the US market depending on what you include. They go as high as $3 trillion if you include social media companies. However, even without them estimates still suggest somewhere in the region of a trillion-dollar yearly market.

Some large contributors to this sector and their estimated market valuations in 2025 include:

  • Video streaming – estimated $110 billion
  • Videogames – $114 billion
  • Online casinos – $10.75 billion
  • Online music/podcasts – $20 billion

The same is true across North America – with Canada’s videogame business bringing in $5.1 billion to the country’s GDP and supporting more than 30,000 jobs.

Interestingly, online casinos as defined above only includes regulated operators from a handful of US states that have open markets. If offshore operators are included that $10.75 billion valuation would likely at least double, although it is hard to put an exact figure on that.

Regardless, this shows you the scale of the digital entertainment sector in the US – and that is without including many other sectors that are supported by recycled spending from large digital companies.

The Entertainment Sector Supports Other Businesses

Two people sit at a desk in a busy broadcast studio, surrounded by many monitors displaying live footage and cityscapes.

Digital entertainment businesses are often at the forefront of pioneering web technology. Online video streaming wasn’t invented for online learning or communications but for entertainment purposes.

Although things have changed somewhat since the rise of AI, entertainment companies still create huge demand for technological infrastructure like cloud computing, cybersecurity and data storage.

For example, consider a site like Casino.ca that reviews online casinos in Canada. A site like this employs experts to analyze sites for a range of factors, including payment methods, game collections and bonus offers, to help players make their choice in a competitive market.

However, it will also employ:

  • Web developers
  • Search engine optimization specialists
  • Managers and HR
  • Compliance and legal teams
  • Office management
  • Accountants and payroll services

These platforms are not even online casino operators themselves, but auxiliary businesses serving the main market. Yet, their investment in infrastructure and employment will be substantial in their own right.

This demonstrates the wider importance of the digital entertainment economy. Significant percentages of revenues from the trillion-dollar sector are poured back into the wider economy. For example, digital entertainment supports somewhere in the region of 28 million jobs in the US according to the Interactive Advertising Bureau. Meanwhile in Canada, several million people are employed directly in the online business and likely much more if you include the services listed above.

They Create Stars with Huge Reach and Influence

Online entertainment has also broken down the barriers between creators and consumers. Whereas the traditional entertainment business long-relied on gatekeeping institutions to determine production and reach of what was made, now anyone with a smartphone and a connection can be part of the entertainment economy.

Around 1.5 million Americans work in the creator economy, and creator driven advertising spend is estimated to be around $40 billion in 2026. In 2025 in Canada, YouTube alone contributed $2 billion to the economy in terms of creator payments and advertising,

Some of these creators become hugely successful, just from being part of the wider entertainment sector, and eventually become the entertainment themselves.

Videogame streamers, casino gambling streamers, technology or videogame reviewers – all of these are examples of content creators who gain initial appeal through an existing digital entertainment sector and then convert that into their own monetized audience.

Today, the biggest creators are companies in their own right, with multiple revenue streams and dozens, if not hundreds, of employees.

Yet without other digital entertainment to react to or interact with, would many of the stars of YouTube, TikTok or Twitch be as big as they are today?

The Digital Infrastructure is More than the Business Itself

As well as all the auxiliary businesses behind the promotion and operation of digital entertainment, the sector is increasingly built on the same digital infrastructure as the wider economy.

Innovations in digital media streaming powered video communications. New ways of delivering live data for live casino games or 24/7 live streamers helped refine streaming technology. A game like Pokémon Go helped create more-detailed digital world maps than ever.

For a concrete example, consider an online casino. It has to use the following digital services in its operation:

  • Marketing
  • Customer service
  • Multi-way fast payments
  • AI-monitoring systems
  • Geolocation
  • Identity verification

As these things develop, even more innovations will be fostered that can be put to use in other businesses. North America’s digital entertainment sector is, at this point, far more than just entertainment – it is an integral part of the economy, driving employment, innovation and activity in multiple fields.

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Sameer
Sameer is a writer, entrepreneur and investor. He is passionate about inspiring entrepreneurs and women in business, telling great startup stories, providing readers with actionable insights on startup fundraising, startup marketing and startup non-obviousnesses and generally ranting on things that he thinks should be ranting about all while hoping to impress upon them to bet on themselves (as entrepreneurs) and bet on others (as investors or potential board members or executives or managers) who are really betting on themselves but need the motivation of someone else’s endorsement to get there.

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