Modern entertainment is now a form of mass media with more mediums, platforms, and services vying for the time of consumers. Users are now adept at using two or more devices at once while watching TV or playing games after using a Borgata online casino bonus code, and they demand the very best experiences wherever they choose to spend their time.
Just ten years ago, entertainment could be isolated into distinct entities such as TV, radio, print and social media. That is no longer the case as each of them are now connected, giving people more options to watch, share and interact with the entertainment they consume on a daily basis.
“The distinctions between print and digital, video games and sports, wireless and fixed Internet access, pay-TV and OTT, and social and traditional media are blurring,” PwC US tech and media leader, Mark McCaffrey believes.
He adds: “So to succeed in the future, companies must re-envision every aspect of what they do and how they do it. That means having, or having access to, the right technology and premium content, delivered in a cost-effective manner to an audience that is engaged with the brand.”
Video streaming has become the norm for generations young and old during the last couple of years and Deloitte’s Digital Media Trends Survey points to this trend strengthening in 2020. More than two-thirds of respondents said they now have one or more video subscriptions which is not a surprise following the recent arrival of the heavyweight Disney+ service alongside Netflix and Amazon Prime.
Traditional pay-TV was once the go-to option for modern entertainment, but more people now have a streaming subscription. This has forced US TV networks and studios to redirect their efforts into standalone services which means consumers will have to juggle more subscriptions during the 2020s to watch everything they desire.
The growth in video streaming is mirrored in the online gambling market which is expected to surpass a $94bn market cap by 2020. The key drivers here are the convenience of cashless payments and play-on-the-go games on smartphones. This will continue as blockchain tech makes payments even easier and opens up a new market for virtual items. When coupled with a rising per capita income, players are more willing to spend on high-quality games crafted by developers deploying the cutting-edge tech.
VR and advertising
Virtual reality will bring new experiences both for online gaming and the wider entertainment industry. The US is now the world’s VR leader with the market set to grow by a considerable 250+% annually during the next three years. Experts believe it will be worth $7.2bn by 2022.
Internet advertising is also deeply intertwined with modern entertainment. The US is also in the vanguard here with the $88bn revenue generated in 2017 expected to expand at 7.7% CAGR to more than $127.4 billion by 2022.
The latest ‘Media & Entertainment Outlook’ published by PriceWaterhouseCooper shows an entertainment industry that is eager to become a jack of all trades rather than a master of a particular medium or platform. This trend, known as convergence, will see streaming services and TV companies attempting to secure deals for content that will appeal to new audiences.
McCaffrey believes that “user experience and loyalty” are now the main objectives for entertainment conglomerates and that the key to achieving this is by consolidation and creating new content on a regular basis. Radio stations that were once the domain of live-only broadcasts are now trying to deliver weekly or daily podcasts, for example.
The arrival of ultrafast broadband and next-gen 5G mobile networks will also make it easier for people to consume entertainment at scale. The demand for excellent shows and digital experiences will continue to soar and companies will need to meet this challenge head-on to retain customers and drive growth. PwC expects data traffic levels to surge to 397.8 trillion MB in 2020.
Mergers and acquisitions
The entertainment industry will also see more mergers and acquisitions with huge corporations likely to become even bigger. Look no further than the recent $85.4bn deal involving AT&T and Time Warner. Bigger players in the industry will try to push out newcomers to maintain and increase market share.
Modern entertainment has evolved into an always-on service industry with targeted, ad-supported video at the heart of the experience for consumers. As the new decade gets underway, augmented and virtual reality will provide new experiences and legalized sports betting will open new avenues for growth for media businesses.