A new report published by Deloitte has found that the entertainment and media industry is set to bounce back in the next year, with growth across multiple verticals and several new trends to watch.
Looking back over the past 12 months, the report found that a number of changes and trends occurred. For example, technological progress significantly affected the sector, especially when combined with what Deloitte refers to as “generational impacts.” Digital media played a massive role in developing the industry, with a focus on innovation and remaining competitive.
Cutting down on in-person entertainment
One of the report’s key themes was that people are looking for entertainment online and closer to home. This is shown through findings of another report by Ipsos that found Canadians have taken steps to change their entertainment habits. Some 46% said they have cut their budget for leisure and other activities over the last year. In the same vein, international travel has been reduced by a third of respondents, while just over 30% said they were looking to or had reduced domestic travel. This has resulted in people looking for entertainment closer to home or even online.
For example, online gambling continues to draw in players as it offers on-demand entertainment via mobile or computer. In addition, interactive games such as live blackjack provide players with human interaction, as they can talk to other players and the croupier throughout the game. Interest in this type of activity goes hand in hand with an interest in other digital entertainment options, such as streaming and online communications platforms.
Other trends to look out for
But it wasn’t just the switch to digital that was noted in the report. In particular, new products such as non-fungible tokens (NFTs) also got a mention. Deloitte expects that this will drive forward new customer engagement models and loyalty from clients. This kind of development will also see more products being developed and a widespread shift in perceptions of the blockchain, crypto, and decentralization.
In terms of online shopping, social media will become a key player in the sector. Going far beyond its initial purpose of connecting people and being a place to share information, it will now offer the complete buying cycle. This means buyers will browse, order, and pay all from within a social media app using payment integration.
With streaming, the report states the video streaming industry will mature as the focus shifts to lifetime client value, not just subscription costs. This means companies will look at other business models to remain competitive in a cutthroat market. Their efforts will continue to be bolstered by struggles with the in-person entertainment market, as they will face an uphill battle to provide a better experience than what people think they can get at home.
The report concludes that all the trends we are seeing in media and entertainment today are laying the ground for the future of the metaverse. We will continue choosing immersive experiences in the online world, often forgoing the ‘real’ one. We will also see more crossover between the two and many blurred lines.