Israel Entertainment Market Size and Forecast by Content Type, Delivery Platform, Revenue Model, and End User: 2019-2033

Israel Entertainment Market Outlook

A Digitally Mature, Export-Oriented Entertainment Market

The Israel entertainment market has evolved into a dynamic, digitally mature industry with strong international visibility and local innovation. Valued at approximately US$2.9 billion in 2024, the market is projected to grow at a CAGR of 5.75% between 2025 and 2033, according to estimates from DataCube Research. This growth is primarily led by film and TV production, music and audio streaming, interactive entertainment, esports, and live events, with IP licensing and celebrity management gaining ground as ancillary revenue streams.

Israel’s export-driven content model is a defining feature of its entertainment ecosystem. Original formats such as Fauda, Tehran, and Shtisel have received international acclaim and have been adapted or streamed by platforms like Netflix and Apple TV+, establishing the country as a content development powerhouse. The domestic demand for premium entertainment is also expanding, bolstered by a tech-savvy population and high penetration of smart devices and digital payment systems.

Infrastructure Strength, Streaming Growth, and Regulatory Support Catalyze Sector Expansion

The Israel entertainment sector is thriving on the back of strong infrastructure, innovation, and government-backed incentives. The rapid rollout of 5G and edge computing solutions has significantly enhanced streaming performance and cloud-based gaming experiences. This is enabling seamless consumption of high-resolution content and interactive formats across platforms.

From a regulatory standpoint, the Israel Ministry of Communications continues to support the entertainment sector through relaxed OTT licensing frameworks and co-production treaties. These policies enable cross-border collaborations, as evidenced by recent co-productions with Germany and the United Kingdom. The Israeli Film Fund and the Ministry of Culture and Sport are key stakeholders investing in emerging creators and independent productions, ensuring diversification of content and voices in the national media landscape.

Despite these advances, the market faces headwinds in the form of talent outflow and relatively high content production costs. However, the strategic emphasis on scalability through animation and format licensing is mitigating some of these challenges.

Global Demand for Israeli Content and Domestic Economic Resilience

A major factor driving the Israel entertainment industry's upward trajectory is the growing global demand for Israeli formats, which has translated into licensing revenues and international partnerships. For instance, in 2023, the psychological thriller The Girl from Oslo was jointly produced with Norway and distributed to over 30 countries, showcasing Israel’s growing influence in international content markets.

Domestically, Israel's disposable income levels, estimated at US$33,500 per capita in 2024 (OECD), are supporting increased consumer expenditure on entertainment subscriptions, gaming, and live experiences. Investments in streaming infrastructure, such as localized content delivery networks and AI-driven personalization engines, are also improving user engagement and retention.

Digital Natives Fueling On-Demand Consumption and Interactive Media

The pace of digital content adoption in Israel is among the highest globally, with the average citizen spending over 4.2 hours daily on entertainment content, including video streaming, music platforms, and gaming. This is particularly prominent among the 18–34 age demographic, which comprises over 35% of the population and is driving demand for immersive formats and multilingual content.

Subscription-based models dominate the market, led by Netflix, Disney+, and local players like Yes+ and Cellcom TV, which collectively account for over 2.1 million subscribers in 2024. In music and audio, Spotify and Apple Music remain popular, but local Hebrew-language content on platforms like IDC Radio and Kan 88 continues to attract loyal listener bases.

Israel's esports community is also expanding, with recent tournaments in Tel Aviv attracting both domestic and regional viewership. Esports is further supported by strategic partnerships between gaming studios and educational institutions, facilitating career pathways in gaming design, streaming, and event management.

Competitive Landscape: Maturing Strategies and Global Collaborations

The Israel entertainment industry features a competitive mix of local studios and international production firms. Key players include Keshet International, Reshet 13, Kan (Israeli Public Broadcasting Corporation), and Endemol Shine Israel. Keshet’s global format distribution strategy has earned it partnerships across Europe, the U.S., and Asia, allowing it to scale content beyond borders efficiently.

Global firms like Warner Bros. Discovery and Amazon Prime Video are increasingly sourcing content from or commissioning work in Israel. In 2023, Amazon greenlit Hadera Nights, a drama based in northern Israel, reinforcing the country’s appeal as a high-yield creative market.

Recent strategies include:

• Hybrid monetization models—e.g., ad-supported + subscription streaming bundles introduced by Yes+ in Q4 2023.
• Cross-platform licensing of characters and stories into comics, mobile games, and merchandise, particularly in children’s entertainment.
• Creator economy platforms, such as the government-supported “Made in Israel” initiative, which helps digital creators commercialize local content for international platforms.

Content distribution is bolstered by Israel’s fiber-optic infrastructure and the integration of smart TV ecosystems in more than 75% of urban households, enabling rapid scaling of new formats across digital channels.

Conclusion: A Global Force in Content Innovation

The Israel entertainment market is advancing beyond traditional boundaries, carving a distinct identity as a global content incubator. Backed by regulatory support, digital infrastructure, and a consumer base eager for innovative experiences, Israel is poised to strengthen its global entertainment footprint.

As local and international companies deepen their investments in interactive, exportable, and culturally rich content, the Israel entertainment industry will continue to serve as a model for creative agility, strategic content scalability, and cross-border media influence in a digital-first world.

Author: Joseph Gomes (Head – Media and Entertainment)

*Research Methodology: This report is based on DataCube’s proprietary 3-stage forecasting model, combining primary research, secondary data triangulation, and expert validation. [Learn more]

Israel Entertainment Market Segmentation