Contact us anytime to know more - Abhishek P., Founder & CFO CISIN
Consumers around the globe have "cut the cord" over the past decade in favor of app-based entertainment. If you Google it, you'll find that cable is still available but that most people no longer depend on TV to provide entertainment or information.
The industry's current metrics show us what is working and provide a basis for planning for the future.
The pandemic is causing people to consume more digital media and entertainment. 84% of consumers stated that they spend more time online watching entertainment. In comparison, 69% indicated that they intend to increase or maintain their video streaming habits over the next 12 months. Another 71% said they would spend the same or more time on social media.
Market Stats of the Media and Entertainment Industry
MarketWatch Report predicts that the entertainment and media industry will reach approximately $6709.4 trillion by 2030. This is a 10.40 percent CAGR. This industry is the most popular in the United States.
The US media and entertainment industry is worth a third of the global M&E market at 717 billion dollars. This includes radio, books, ads, games, TV shows, movies, and music, as well as ancillary goods. This industry is experiencing a rapid recovery despite the negative effects of COVID-19. Trends in media and custom entertainment solutions are changing.
Another data shows that personalized experiences are becoming more important in a constantly changing industry. According to FIFA, 1.12 billion people viewed the 2018 World Cup match between France & Croatia. However, consumers can now create their menus and consume media at their own pace. This is one of the most popular digital media consumption trends.
People are increasingly putting on headphones wherever they go and wearing some hermetically sealed case. Access to any content is easy, regardless of whether it's on a tablet or mobile phone. It encourages mobile video consumption.
Media and Entertainment Industry Will Emerge in Upcoming Years
The media and entertainment industries saw continual changes in 2021 due to technological advancements, changing generational behavior, and continuing impacts of the global pandemic. People sought entertainment and media at home in the face of COVID-19 spikes. They also avoided larger events in person. Even though digital media engagement was higher in the summer with a healthier population, it is clear that the pandemic has only intensified pre-existing trends in the digital world.
The socioeconomic and technological dynamics that have shaped the modern age seem to be convergent with technology at the threshold of 2022. This is causing more innovation and competition and making it harder for business models to adapt to changing behavior. In the business of imagination, the media and entertainment industries are riding a wave full of great opportunities in times of major change, such as the one we are in.
The Metaverse
While virtual events, performances, shows, and other forms of entertainment have grown in popularity, much of society is restricted or locked down in terms of how often they can be outside their homes. The metaverse is an online, persistent, interconnected digital environment that allows us to meet, socialize, work and entertain. The first glimpse of the future is in the metaverse performances like those by Bruno Mars and Ariana Grande last year within Fortnite. Although the metaverse might not reach Ready Player One level of sophistication by 2022, it will become a place where friends can share entertainment experiences from the comfort of their homes. Hulu and Disney Plus offer "watch party" functions, which allow you to share movies with friends from all over the globe.
AI Boom in Media and Entertainment
A personalized user experience is now a major advantage for media companies. Spotify and Netflix use AI and ML to provide relevant content based on user preferences and behavior patterns. These algorithms analyze and collect data to offer consumers interesting content and keep them engaged.
Data analytics services augmented by AI allow entertainment businesses to gain unique insights across multiple channels in real-time and provide exceptional experiences. Artificial intelligence is, therefore, at the forefront of digital transformation in media entertainment and media.
AI can also be used to automate the content and film production processes. It can automate almost any task, including scriptwriting and content editing. Hollywood already uses tech innovations to increase its revenue. The proliferation of AI within the entertainment industry will boost production standards and increase revenue.
NFT Phenomenon is Taking Off
This trend caught worldwide attention. Many musicians, artists, and influencers saw huge returns. Investors spent thousands to millions of dollars to purchase digital art. For his first tweet, Twitter's founder received over $2.9 million. After Beeple, an American artist named Mike Winkelmann sold his artwork for more than $69 million. A Grimes video was also sold for nearly $390,000.
What is NFT? The non-fungible token, or NFT, converts digital or real objects into unique assets that serve as its certificate of ownership.
Why is this important? These tokens are revolutionary for game developers, media companies, and sports leagues to monetize their content. NFT platforms could be a major trend in the entertainment industry in 2022, especially since we are looking into metaverse and Web 3.0.
Big brands such as CNN, Warner Bros., and Playboy seek ways to transform their offerings into digital art pieces to increase engagement and generate new revenue streams. Companies can reward their customers with NFTs by offering them exclusive access to events and real-life perks.
D2C Video Streaming
The media industry has witnessed an increase in global lockdown since its introduction. Users found it essential to access premium video content during that time. This has led to a decline in US pay-per-view TV subscriptions but increased overall digital video consumption.
To offer many options, Over-the-Top intervened. Hulu, Netflix, and Amazon Prime are just a few examples of OTT platforms. All of them offer cross-platform compatibility, which is important for modern consumers. Today's audience prefers to watch videos on multiple devices and platforms. Another outcome is streaming warfare.
D2C stands for direct-to-consumer marketing. This strategy means that a company sells products and services directly to customers. This allows the manufacturer to control its marketing and sales strategies. Here's how D2C video streaming works when it comes to future trends in media and entertainment.
eSports Broadcasting Trends
This is one of the latest trends in television broadcasting. Fans cannot watch their favorite stadium matches due to the global COVID-19 pandemic. It is no longer an obstacle. eSports is a new trend in digital media. These industry revenues were more than one trillion dollars between 2021-2022. Media rights and sponsorships make up the largest portion of this revenue.
Gamers can access the latest augmented and virtual reality tech solutions through gaming content services. Real-money gaming has been a huge focus of giants like WinZO and Mobile Premier League. This direction can encourage software development by converting media and entertainment app development. This is where 5G technology will be the key to your success.
AI Trends
Artificial intelligence is a new trend in media. It is affecting TV, VFX, and radio. Most entertainment companies have a large unstructured digital data collection that can be organized using AI tools. Natural language processing, machine learning, artificial intelligence, and machine learning are all equally effective in predicting content user engagement.
M&E companies have a large repository of unstructured user digital data. Artificial intelligence has given the mining and filling of this digital data a human-like dimension.
AI can quickly estimate and retrieve emotional changes. This information is essential to understand better customer behavior, digital media consumption trends, and other relevant data. This data allows for personalized recommendations about how content can be improved.
Consideration for Your Media and Entertainment App Development
Because of their unique nature, entertainment apps, live streaming apps, sports applications have a wider audience than any other business. Entertainment can include news, streaming, games, and music.
Games and social media are large enough to merit their consideration. Regardless of the entertainment app, there are five common considerations. This is because people tend to open entertainment apps in a certain mindset.
Focus on Appearance and Aspect Ratio
All entertainment apps, except music and audiobooks, have one thing in common: their appearances matter. This can be difficult as the app's appearance will vary between different devices.
Verification should include checking your entertainment app on any potential mobile devices where it will be accessible.
Integration with Other Apps
People who love something want to share it with their friends and family. Integrate your app with social media and other apps that allow customers to share your app with others. This will allow you to attract new customers while integrating the app with existing customers and their networks.
They will be more likely to share their entertainment apps with other people. It is easier for them to keep the app in their mind, making it a regular part of their daily routine and increasing their use. This is crucial to ensure that your app continues to be used by people, unlike other apps.
Focus on the User
It's easy to lose sight of the end goal when creating an app. It is important to remember the user's perspective when creating an app. This is especially true for entertainment apps. People use these apps to keep them busy. They won't return if they don't like the experience.
There are many wrong ways to build an app. Most of them involve forgetting your target audience. This can help you strike a balance and create a memorable user experience.
You will have to spend more time researching trends and brainstorming ideas for the app. Although it may be time-consuming, this will still be an essential part of the app's lifecycle.
Watching the Trends and Reviews
These two elements are crucial to ensure that entertainment apps provide functionality and an enjoyable experience. This is essential to ensure your app remains relevant and engaging to your target audience.
There is only so much you can do for entertainment. But there are always things you can improve or add. Customers who leave reviews and offer suggestions about things they think could be improved or added should be considered. If you receive a lot of similar suggestions or requests, don't hesitate to share them with your team. You can also survey current customers to help you create the app or adjust it based on online feedback. Customers love feeling included in new apps and updates to the app, especially if they are willing to give feedback.
Content Is Critical
It is important to have the right content for an app. But content is what makes entertainment apps. You must know your audience to offer the best content for your app. But ultimately, that content is what will make or break your app.
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You should offer as many genres of music as possible for auditory apps to make sure there is something for everyone.
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You should ensure that streaming services have clear screens and plenty of options.
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You want games to be engaging and entertaining. It is important to keep the game's content visually appealing with a strong visual focus. It is the little things that can keep players coming back for more.
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Social media publishing solutions give customers many ways to share their thoughts and activities to encourage them to post more often.
You must strike a balance between visuals and content in games. Each entertainment niche has its content requirements, so this is where you need to stand out from the rest. As heavy or distracting designs can overwhelm, it is important to keep them minimal. The focus should be on the content and not any other aspects.
Monetization Models for Media and Entertainment Solutions
How can mobile publishers make a living from this app category? Entertainment apps use a variety of monetization strategies depending on their business model and the audience they serve. The popular strategies are In-App Subscriptions, In-App Payments, In-App Advertising, and Rewarded Videos.
Subscriptions
Paid subscriptions are a popular way to monetize your app. Users pay a fee for access to the app. The app creators, in turn, work hard to retain customers and keep their products current.
Subscriptions are a relatively new model in the market. It is often used by live streaming apps such as Netflix and Disney++. App publishers usually offer users the chance to try the app free of charge, and then if they love it, they can subscribe to the service. Publishers with high user engagement, a trusted brand, and exceptional profits make this monetization strategy a success.
In-App Purchases
Apps that offer in-app purchases are usually free and provide additional purchases for users. App owners usually sell virtual goods within their apps, such as premium features and ad removal. App purchases can be very profitable for entertainment apps, such as games if there are loyal users who will spend money within the app.
In-App Advertising
In-App Advertising is a popular and simple way to monetize your app. Publishers in the Entertainment sector monetize their apps by showing ads. Advertisers can reach their target audience efficiently with In-App Advertising. App publishers can also earn a steady income by showing ads to their users.
Rewarded Videos
Reward Videos have been one of the most popular and profitable strategies in recent years. Users are required to watch a video for a reward. Mobile app publishers also make money from every video their users watch. Rewarded videos are a great way for users and publishers to increase their revenue.
Rewarded Surveys
Rewarded Surveys are based on the same concept as Rewarded Videos. Users must complete a survey to earn a reward. Mobile apps can make this monetization model work by requiring users to complete surveys to unlock premium features or receive a reward. Rewarded Surveys are especially useful in entertainment apps. Games that offer rewards or apps that allow users to create avatars, stickers, and videos can easily implement.
The Key Takeaway
Sports are expected to have a 6% annual compound growth as venues fill up seats and popcorn buckets to satisfy rising consumer demand. Already, the five biggest venues in America expect to host about 20% more events during the first quarter of 2022 than in 2019.
Media has been dynamic since its inception. In 2022, it will require more creativity and agility to meet market demands and keep up with user needs. These entertainment trends show that companies must be prepared to face new challenges and seize opportunities to innovate and succeed. It is time to invest in technology and develop a digital strategy for the entertainment industry, to adapt to COVID-induced behavioral changes.
