The entertainment and media industry is starting a new stage of growth. The boundaries that once separated the entertainment and media industries from the high-tech and telecommunications industries are growing increasingly obscured. Large content generators are building verticals, teaming up with distribution sites to finally get access to the end consumer.
The Internet and telecom giants are expanding their activities, entering the content market and organizing local integrated ecosystems. The boundaries between traditional segments are blurring: print and digital, video games and sports, on-air, cable and Internet television, social media and the media. JKR company proves it: the investment organization develops the entertainment industry.
What Are the Tendencies of 2021?
According to our forecasts, the effect of the ongoing changes will be more and more significant. Such trendy, but still quite “young” technologies, such as artificial intelligence and machine learning, augmented and virtual reality, will continue to change the face of the industry. In addition, in all segments of the entertainment and media industry, the introduction of new technologies can reduce the cost of delivering content, while increasing the speed of access to it and the degree of its personalization.
Now it is not enough just to know your audience or to be able to produce something of high quality: you need to be able to do everything. This requires investment in both technology and quality content: media companies are increasingly becoming technology companies, and technology companies are becoming media companies.
Mobile devices development is crucial:
- The boom in the use of mobile Internet, which has spread to all markets of the world, has led to innovations.
- The main means of access to content and services for consumers around the world has become mobile devices connected to the Internet.
- That is why smartphones and tablets are becoming not only a convenient means of accessing information.
- Innovative devices are one of the most important channels for brands to connect with potential buyers.
We expect that 2021 will be the first year when global revenue from online advertising on mobile devices will exceed revenue from traditional internet advertising.
Industry Change is Accelerating
As in the entire economy as a whole, the centres of crisis in the entertainment industry and the media are unevenly distributed. The most severe damage was suffered by companies forced to completely cease their activities due to the coronavirus. First of all, those who organize events: live concerts, film screenings, industry exhibitions. Advertising spending will also decline by 13.4%.
In addition, we saw how the long transformation from print to digital was stimulated by several years, resulting in a drop in revenues from paper newspapers and magazines. Entertainment is one of the most important spheres of a person’s daily life, which, along with education, can significantly influence the state of society. The need for it appears immediately after the satisfaction of primary needs.
Satisfaction with the quality and availability is an indicator of his social status for a person. For society – it is an indicator of the development of the country’s economy as a whole and its social sphere in particular. The practice of creating special conditions for organizing entertainment processes led to the emergence of fairly powerful entertainment industry.
The global entertainment industry accumulates billions of dollars and is a significant part of the economy of most countries. Despite the scale of the entertainment industry, the system of economic knowledge in relation to this area of research is vague and ambiguous. The questions of not only management and marketing remain open. The conceptual apparatus and basic theoretical provisions of the studied area are not fully formed.