While the media and entertainment industry boasts as one of the first sectors of business to navigate digital disruption, its transformation has just got started.
Anyone dreaming of making it in the current entertainment industry has to keep up with the dynamics of the modern-day consumer. The market now is way different from the past years thus, making any volatile move can make you or cost you dearly.
From the streaming platforms taking over the music industry at the expense of traditional radio to over the top (OTT) content providers disrupting the conventional TV, the world is witnessing a revolution in the entertainment industry unfold.
Just a few years ago, the ultimate goal for an artist was to get signed up by a major label. Now, they create their own label and call the shots. With this crop of new successful and independent musicians such as chance the rapper, Gucci mane, childish Gambino, just to mention a few, it is becoming clear that as an artist, you don’t need the big labels to make it in the industry anymore.
Here are some trends that will shape 2020 and beyond;
5G will evolve what content is:
The move to 5G wireless networks will not only impact telecom operators, but it will also change what is possible in terms of the experiences. Faster broadband will facilitate live streaming and downloads. Lots of internet-driven television platforms will spring up giving more opportunities for entertainers to spread their content.
As major networks and studios continue to launch their own direct-to-consumer streaming services in 2020, competitors will likely scramble to offer content libraries broad enough to both attract and retain customers. This creates opportunities for media, and entertainment firms to re-prioritize their content libraries with a wide array of offerings—from video, music, and gaming services to ad-supported content. Content providers will no longer hold an event to introduce their new content. Live streaming will get it done. Sector players also forecast that live streaming participants will be more than actual attendees at music festivals and concerts.
This has already become the dominant model of delivering streaming video to consumers in countries such as China, India, and throughout the Asia-Pacific region. This sometimes is combined with subscription services making these artistes earn revenue from ads attached to their content.
Fans will become the new currency:
Western streaming services have done an awesome job of monetizing consumption. As streaming becomes easier and affordable and artistes communicate directly with fans, “fandom” will be monetized. This will be popular especially among younger audiences since services like gaming and others will want to target where the people are.
Augmented and Virtual Reality:
The VR market is faster than ever, transforming into an entertainment and productivity platform. In fact, producers and directors create real-life/real-time movie scenes that leave viewers surprised. VR makes magic become very possible. Today, the U.S. is currently the world’s leading VR market, with revenues of $1.5 billion in 2017, which by 2022 is expected to reach $7.2 billion. This is owing to its use in the entertainment industry, particularly gaming.
So, for creatives, it is a great time to be in the industry. This new generation of musicians are re-writing the rules of engagement with fans and taking back control from record labels.
What other trends should we expect to witness in the entertainment industry? Please share with us in the comment section.