Surhat

Healthy and General

Why has the entertainment sector been showing considerable

3 min read

Technology is the main driver behind the considerable growth in recent years. Mobile technology, internet broadband via optic fibre and 4G/5G networks, and Cloud services development contributed heavily to the growth of the entertainment sector. Such progress in tec enabled new niches and genres. The iGaming sector created new forms like live roulette and immersive entertainment, where you have live dealers and interaction that emulates traditional casinos, all thanks to powerful devices and fast internet. In addition, TV shows and the music business have adopted streaming services, and there is a massive growth in VR tech as a result.

Streaming spearheading the growth

The entertainment sector will grow by 6.7% in 2022, and with the current pace, the global industry will generate more than $2.6 trillion by 2025. The most significant growth within entertainment is in video streaming. Estimates project more than 10% growth until 2025, when the streaming services might add up to $81.3 billion.

The successful Netflix model is behind such fast growth, and while Netflix itself might face some issues, other providers in the now heavily saturated market are pushing the growth. Netflix, HBO Max and Amazon Prime are already well-established platforms, but others like Disney Plus, Peacock, Apple TV Plus, YouTube TV, and CBS All Access are now disrupting the market.

The movie business is not lagging. In 2021, significant studios produced more than 943 films, which is more than 100% more than the previous years. Movies are behind the cinema revenue, but many exclusive films are on pay-TV and streaming services platforms.

Gaming is huge

If you think video streaming is extensive, it is still way below what gaming brings to the table. Video games and streaming grows at a slower pace of 5.7% but is expected to have $200 billion in revenue in three years. VR is increasing on the fastest trajectory of 30% within the gaming industry, but it will account for only under $7 billion.

The Esports movement is steadily growing, and mobile gaming is the next big thing, with more and more games coming mobile-first.

The iGaming sector is also growing at an unprecedented pace, with the estimates going to almost $98 billion market value in 2025.

Music is for you and me

Although it’s relatively small compared to gaming or video streaming, with a $30 billion market, music is a massive deal in the entertainment sector. The biggest growth carriers are streaming services like Spotify, Deezer, YT Music and similar platforms. On top of streaming music content, live performances are again making huge strides after a couple of slower years on top of streaming music content.

Classic TV is still the most significant segment globally and will have the most revenue, but it’s also the only one with negative growth with a projected decline of 1.2% in the next three years.

Live sports and news are two cornerstones of the traditional broadcasting industry, and sports, in general, is also contributing to the Entertainment sector itself.

Mobile revolution

While only 2% of data traffic came from mobile phones in 2011, now more than 60% is generated on smartphones. This is because mobile phones with big OLED screens and powerful CPUs are now coming to every corner of the globe, growing rapidly in places like Africa, Asia and South America.

The mobile expansion opened up gates for new gaming, streaming, and other entertainment services. Watching films or TV shows on the go has become a standard, not an abbreviation, and gaming is also shifting from the PC/console dominated market towards mobile gaming. To illustrate how things changed, we can show the revenue top mobile games generated in 2021. PUBG Mobile reached almost $3 billion, while multi-platform Genshin Impact earned $1.8 billion. Casual games Pokemon Go and Candy Crush Saga had $1.2 billion.