The dynamics of the media and entertainment market in 2020 was the most negative in the entire history of observations – minus 5.6%. Conversely, in 2021 we expect the sharpest jump. But, of course, it is worth considering the specifics of the base for this growth and treating it critically. Within the framework of the five-year forecast, which covers the period from 2019 to 2024, the global industry will have a CAGR of 2.8%. Again, looking at the numbers may mistakenly feel like business is going its course, but dig into the details and the changes will become apparent.
Advertising has been one of the hardest-hit sources of income for the entertainment market. The online advertising segment is going through a crisis relatively easily. Although the effect of cuts in budgets or postponement of campaigns by advertisers will not allow it to reach the previously predicted indicators. Many types of advertisements were no longer viable during the quarantine period. JKR investment company is a great way to promote the entertainment industry.
Current Situation that Determines Trends
During the pandemic, the gap between digital and non-digital sources of income has clearly widened. The entertainment market players had to react quickly and transfer their activities to an online format. You can do it only by confirming the humorous survey that was spread on social networks about who had the most influence on the digital transformation in companies – the CTO or the coronavirus.
In particular, the producer of the game hit Pokémon GO was forced to adjust the gameplay, tied mainly to walking. In the current situation, representatives of the online segment felt much more confident. For Disney + OTT service, the launch timing could hardly have been better. In the past nine months, the number of subscribers has reached 60 million, which is the lower limit of the company’s five-year plan.
The Fifth Element
In 2019, smartphones surpassed broadband in terms of data consumption. And even despite the growth of broadband access during the period of self-isolation, smartphones will continue to increase the lead over the forecast period. They are strengthening their position as the most popular mobile device.
With the widespread adoption of 5G connectivity, consumers will have access to more high-quality content, games and services. The limitation for the development of 5G is still the high price of devices that support this technology. Notably, operators are pinning their hopes for 5G on major sporting events. It is expected that the desire to follow their favourite teams in high quality will spur consumers to switch to 5G. It is similar to how TV manufacturers manage to sell most of their latest models on the eve of important championships.
A growing number of consumers are interacting with artificial intelligence technology in the form of voice assistants embedded in mobile devices. Nevertheless, market researchers note that despite the convenience and increasing personalization of such assistants, not everyone is in a hurry to use them. One of the main constraints remains the issue of personal data security. Almost half of the survey respondents consider artificial intelligence to be an insufficiently reliable custodian of private information.
At the same time, the active development of the smart speaker market continues. One of the parts of the smart home ecosystem, the mass distribution of which will greatly contribute to the popularity of home voice assistants. Until recently, North America held the lead in the number of owners of such devices, but in 2019 the Asia-Pacific region took the lead. It is expected that 543 million users will have smart speakers in the future.