The media and entertainment industry is constantly evolving and there numerous ways in which we can engage and interact with media. We discover new ways to explore media, to consume media, to share media and also, we are unlocking novel ways to pay for media. This is inclusive from iPod Shuffle to Spotify subscription, from YouTube to Netflix. Physical media like newspapers, billboards to digital ads and subscription, everything is slowly and steadily evolving as the technology is going ahead and unlocking new ways.
The media and entertainment (M&E) industry is transforming its both phases old and new to incorporate changes and coexist in the changing times. Interactivity, digitization, multiple-platforms, multiple-devices and globalization of services based landscape has remodeled the media and entertainment vertical over the last decade and is a sunrise sector for the economy and is making high growth strides. For example, subscription TV revenue of US$94.6bn in 2018 will contract at a -2.9% CAGR to US$81.8bn by 2023, due to a mature market and cord-cutting, largely resulting from SVOD competition. The world still largely remains dominated by TV revenue and the market is leading by some distance which is almost 46 percent as per estimates. Traditional pay-TV providers continue to transform their business models, implementing strategies to help minimize churn and 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. To succeed in the future, companies must re-envision every aspect of what they do and how they do it as the media and entertainment industry was one of the first sectors of business to navigate digital disruption. 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 as disruptive transformation is far from over.
A focus on offering value-added products and packages to drive loyalty and profits from core customers, while also launching slimmer bundles that appeal to the cost-conscious costumes will transform the business models and help strategizes in better implementation. Like many other industries, the entertainment industry is poised to witness a major transformation due to the advent of new technologies such as artificial intelligence and virtual reality as the VR market is quickly transforming into an entertainment and productivity platform. The US is currently the world’s leading VR market, with revenue of $1.5 billion in 2017 and companies in the entertainment industry will be able to make personalized recommendations based on consumer habits. An increasingly tailored world has major implications for every E&M business across every segment, also, it will make the process of content creation more efficient for entertainment companies. OTT video revenue for media and entertainment has reached $20.1 billion in 2017, up 15.2% and predicted growth rates will begin to slow as the market matures, but revenue in this area is expected to reach $30.6 billion in 2022.
By using artificial intelligence, companies in the media and entertainment industry will be able to quickly create new ads and movie trailers and the U.S. continues to lead the global Internet advertising market, with total revenue of $88 billion in 2017. Additionally, this will help in streamlining pre- and post-production processes, making all steps more cohesive and less resource consuming and the market will continue to experience growth over the forecast period, expanding at a 7.7% CAGR between 2017 and 2022 to reach $127.4 billion. Whether the subject is business and revenue models, emerging technologies or regulation and trust. Analyzing large data sets is one of the biggest problems affecting the business outcomes of entertainment companies today. To stay ahead of the curve with the help of analytics solutions the companies must keep on top of current and future developments, as well as being sufficiently agile and ready to respond proactively and at pace. Data, analysis, and perspective offer insight into how E&M companies are adapting, investing and innovating by the increasing need to get personal.