Total spending in New Zealand on digital entertainment and media grew to $5.2 billion last year and is expected to top $6.6b in four years.
PricewaterhouseCoopers' latest review of the industry said digital production was moving towards the heart of many media companies and offered the biggest opportunity for growth. The challenge would be for the industry to keep pace with fast-changing consumer trends.
Chief among those would be to shift advertising online and persuade consumers to start paying for access to entertainment and media content, PWC said.
New Zealand entertainment and media companies were beginning to form partnerships and consolidate to compete with global ones.