This paper examines how digital entertainment consumption drives China’s economic growth from multiple dimensions. Using panel data from 260 prefecture-level cities (2020–2022) and a multi-temporal double-difference method, the study finds that digital entertainment consumption significantly promotes economic growth, with a direct effect coefficient of 0.748. Robustness tests via the PSM-DID method confirm this effect, with a coefficient of 0.714, significant at the 5% level. In the low digital divide group, the regression coefficient is 6.325, while it is significantly lower in the high digital divide group, indicating that the digital divide weakens the effect. Heterogeneity analysis shows that enhancing consumer experience, generating new businesses, and boosting cultural influence positively impact growth. The findings provide insights for the sustainable development of the entertainment industry and the digital economy.