Global Media and Entertainment Transformation Amidst the Changing Digital Landscape
2021 was again a year of uncertainty. Every industry was trying to mitigate the impact of the pandemic. However, amidst all this, there was much more clarity around the forces driving growth and understanding the changing consumer behaviors and competitors.
In this article, we will consider the entertainment and media industry and gather an idea of the trends one can expect in the coming years. One thing is pretty clear the complexity around E&M is growing rapidly, and with each passing year, more consumers are spending time, energy, and money on immersive E&M experiences.
What's exactly changing? Here are some of them:
- The return of the sector to the pre-covid status quo and planning for the future of work.
- Customer behavior changes in different demographics
- The transformation from the current digitization to the next wave of digitization, especially metaverse.
- Changes in creators and distributors
Clearly, the industry that was facing a contraction of opportunities suddenly became self-sufficient in months to face the uncertainty.
So, what can you expect moving forward? Let's find out!
Consumers will call the shots
You are absolutely wrong if you think the changes are happening or are influenced by algorithmic choices. It is primarily the changing consumer dynamics. The time, attention, and money are fueling the transformation, driving trends, and much more. This is an opportunity to grow by diversifying the developing markets and focusing on young consumers to latch onto the emerging trends.
Here's what will change the industry in the coming years:
- The pandemic changes in consumption patterns will stay
There is a growing market and dominance of online options like user-generated content, streaming services, and gaming. The pandemic pushed the sales more during the market. But the prediction confirms that this trend will stay the same since consumer habits have transformed, and they want to stay the same because of habits.
There will be a decline in traditional TV or video options, newspapers, and magazines. So, it would be good to invest in the options here to stay. In fact, OTT, virtual reality, and video games will be the fastest-growing aspect over the next few years.
- Better connectivity is propelling the growth
Since internet access is basic and everyone is getting access to it, irrespective of the growth metrics of the nations, it is impacting the growth of the entertainment and media industry in many ways. And it is safe to say that the growth is positive. Since so many consumers are looking for flexible work schedules or are working remotely, there is an increase in data usage. Plus, smartphone connections are continuing to grow, which is increasing the number of consumers investing in broadband internet.
Clearly, the upgraded infrastructure and the inclusion of 5G are moving the industry towards a desirable number that spikes every passing day.
- Drive in concerts or live experiences will stay like before
It is no secret that the charm of in-person entertainment experiences is hard to ignore. And clearly, they will come back like before. These experiences will come back with a bang with specific changes like driving in concerts. The evidence suggests that live events will rebound strongly. However, the uncertainty of different viruses will be a factor that will affect the bottom line in terms of revenue generation.
- Cinema will restore its identity
While there was around a 70% decline in cinema, the pandemic propelled the industry to rethink the movie industry. That's how OTT platforms like Disney and other options like Netflix grew to skyrocket. Streaming cinemas continue to grow despite changing demographics and pandemic status. Still, there will be signs that the cinemas will reopen, and the options will increase revenue streams.
- Democratized platforms
Digital media won't be about big guys only. The content delivery will see a lot of user-generated content, especially with an increase in Tik Tok videos, Instagram reels, and much more. Individual creators will leverage all the professional tools, increasing access like never before. But established creators will have their space as well. Social media feeds will evolve, and there will be a lot of spins for the world to consume. Did you know that YouTube's most subscribed channels are Vlad and Niki, primarily original content creators?
The next wave of the industry is here
More than a third of M&E executives state that without reinvention the company will no longer exist in the next five years. One can no longer stay or rely on traditional business models to grow in a time and space where the technologies are evolving and changing every passing year. It’s time to adopt and adapt new options to stay ahead of the competition and stay relevant to the times.
Do you agree?
Also, the change of consumer preferences is pushing everyone to meet their needs. For that, one can’t stay with the traditional delivery models. It’s time to go for AI, VR, and Metaverse embedded options so that the young population stays with your company goals and models for a longer time.
It’s time to:
- Pursue excellence and agility at organizational operations.
- Rethink innovations strategies and approach for the future of work.
- Accelerated talent development to align yourself to the changing times.
Final Takeaways: Trends will stay and evolve in the coming years
According to a lead analyst of a global consultancy firm, “There’s no one path to innovation but it’s clear that it doesn’t happen by accident; it needs structure, leadership and above all recognition.”
There is so much happening in the media and entertainment that transformation is the future. Trends like metaverse are garnering so much attention now. In fact, one of the companies announced that they would raise around $1 billion to develop a metaverse version of its game. Virtual reality or beyond reality will see a lot of investments from giants like Facebook, Amazon, and Microsoft. If you want to gain a competitive edge, you need to grow your expertise and include the current and futuristic trends to stay ahead. So, are you all set? If not, start today!