The global entertainment and media (E&M) market will expand by 6.7% in 2022, fueled by strong demand for digital content and advertising, according to PwC’s annual industry survey. The video streaming segment peaked and will continue to rise. Streaming on-demand (SVOD) volume is projected to grow by an average of 10.6% by 2025 to reach $81.3 billion. Cinema profits are also expected to recover in 2022 as the Covid restrictions ease, but it will not recover to pre-pandemic levels until at least 2024.
Revenues for the video games and eSports segment and Sweet Bonanza, in particular, continue to skyrocket, with CAGR expected to reach 5.7% over the next five years, bringing the segment’s revenue to $194.4 billion by 2025. What’s going to happen to the entertainment industry in general? Let’s dive deep and explore.
Major Entertainment Industries That Will Grow in the Near Future
Mobile Internet access will drive market growth, with a CAGR of 6.1%. As a result, the proliferation of 5G networks, advances in mobile technologies, and premium content packages will increase revenues from $449 billion in 2020 to $605 billion in five years. Thanks to this, the following areas of entertainment will develop as well:
- Virtual reality (VR) is the fastest-growing segment of E&M. Its revenue grew by 31.7% last year to $1.8 billion. The growth rate is projected to average more than 30% over five years and reach $6.9 billion in 2025.
- The music industry is poised for growth after a significant drop in revenue for the live music segment (down 74.4% in 2020). Overall music industry revenues are expected to grow by an average of 12.8% over the next five years. Boosted by growth in digital streaming, they will increase to $29.3 billion by 2025. Live performances are also expected to resume.
- Spending on online advertising in 2021 has increased by 9% – to $336 billion, while for the first time, they exceeded the cost of traditional advertising. According to forecasts, over the next five years, they will rise by an average of 7.7%.
Internet access accounted for 34% of industry spending in 2020. The segment is expected to grow at a CAGR of 4.9% from $694 billion to $880 billion in 2025.
How Has the Pandemic Impacted the Growth of the Entertainment Industry?
The pandemic has slowed the development of the entertainment and media industry last year, but it has also accelerated the reversal of trends that have already transformed the industry. The shift in the box office to streaming platforms, the migration of content to mobile devices, and the growing complexity of relationships between creators, producers, and distributors of content have all contributed to changing dynamics and spheres of influence in the industry. According to experts’ forecasts, the need for content, further development of technology, new business models, and ways to create value in the final product will drive the industry’s growth over the next five years and beyond.
To summarize, it should be assumed that despite the impressive growth that experts predict, the nature of competition is likely to change dramatically. Therefore, companies will have to look for new ways of development in the coming years. But still, many predict a bright future for the entertainment industry in the coming years.