This is Part 2 of our three-part series exploring the transformation of Thailand’s entertainment industry.
In Part 1, we looked at how digital platforms and globally exportable fandoms are reshaping one of Southeast Asia’s fastest-evolving entertainment markets. In this installment, we examine the business forces behind that transformation—from artificial intelligence and data-driven advertising to the new ways entertainment companies are creating value beyond the content itself.
Artificial intelligence has become one of the most talked-about topics in entertainment, often fueling fears that algorithms will eventually replace writers, directors, musicians, and actors. PwC’s outlook paints a far less dramatic—and arguably more realistic—picture.
The firm does not argue that AI will create better dramas, produce hit songs, or write blockbuster scripts. Instead, it identifies AI as a business tool that helps entertainment companies better understand audiences, market content more efficiently, and maximize the value of every production.
In practical terms, AI is already influencing decisions long before viewers press play.Studios can analyze audience data to identify viewing trends before investing millions in a new series. Advertisers can deliver campaigns to consumers based on actual viewing behavior instead of broad demographic assumptions. Streaming platforms can recommend content with greater accuracy, while brands can match products with creators whose audiences genuinely align with their target market. AI-assisted subtitling and dubbing are also helping distributors localize content faster, allowing Thai dramas and films to reach international audiences within hours or days rather than weeks.
None of these applications replace the creative process.
A compelling story still depends on talented writers. Memorable performances still require skilled actors. A beautifully shot drama still relies on directors, cinematographers, editors, composers, and countless creative professionals working together. AI simply removes friction from many of the business processes surrounding that creative work.
PwC Thailand’s Assurance Partner, Tithinun Vankeo, argues that the companies best positioned for long-term success will be those that combine artificial intelligence with creativity, high-quality content, and deeper consumer engagement—not those that pursue technology for its own sake.
That distinction matters.
Much of the public conversation around AI focuses on whether machines will replace artists. The more immediate transformation is happening elsewhere. AI is helping entertainment companies understand what audiences want, connect content with those audiences more efficiently, and reduce waste in increasingly competitive marketing budgets.
In other words, AI isn’t replacing storytellers. It’s helping the right stories find the right audiences faster.
Why Advertising Is Becoming the Real Business of Entertainment
For decades, the entertainment business followed a relatively simple formula: create content, sell tickets or subscriptions, and earn advertising revenue along the way.
Today, that equation is changing.
Increasingly, advertising is no longer supporting the entertainment business—it is becoming one of its primary growth engines.
PwC notes that businesses across Thailand are shifting larger portions of their marketing budgets toward digital platforms, where artificial intelligence and data analytics allow advertisers to reach consumers with far greater precision than traditional television, radio, or print ever could. As audience measurement becomes more sophisticated, advertisers are willing to spend more on campaigns that produce measurable results.
The numbers illustrate just how significant that shift has become.
Internet advertising alone is projected to generate THB66.8 billion in 2026—nearly three times the revenue expected from Thailand’s entire OTT streaming market, which is forecast to reach THB22.9 billion. By 2030, digital advertising is expected to climb to THB94.6 billion, making it one of the country’s largest and fastest-growing entertainment segments.
Several factors are driving this transition.
Thai households continue to face economic uncertainty, inflationary pressures, and high levels of household debt. Consumers have become more selective about discretionary spending, making it increasingly difficult for streaming platforms to rely solely on monthly subscriptions. Around the world, many viewers are also experiencing subscription fatigue as the number of paid streaming services continues to grow.
As a result, the industry is increasingly embracing hybrid business models.
Rather than asking consumers to pay for every platform, many streaming services now offer lower-cost, ad-supported subscription tiers or entirely free ad-supported television (FAST) channels. At the same time, advertisers are moving budgets away from traditional television and toward Connected TV, YouTube, TikTok, and other digital video platforms where return on investment can be measured almost instantly.
For entertainment companies, this changes how success is measured.
A hit series no longer creates value simply because millions of people watch it. It creates value because every view generates data, every fan interaction improves audience insights, and every engaged community becomes more attractive to advertisers and brand partners.
In many ways, today’s entertainment companies are not just producing content.
They are building audiences.
And in an increasingly digital economy, audience attention has become one of the industry’s most valuable products.
