The US media and entertainment industry is using new-age technology for content development, distribution, and experience. AI & ML-based solutions are being increasingly used in cinema & TV to offer consumers highly-personalized entertainment.
The industry is set to grow at a rate of 6.35% CAGR, effectively placing the valuation at US$ 983.6 Bn.
Production companies, studios, streaming platforms, broadcasters, distributors, and exhibitors must better understand their audiences to safeguard their bottomline.
Here is our perspective on trends for 2023 and beyond.
1. Artificial intelligence (AI) for seamless integration – Recommendation engines, snippets for previews, voice recognition, and media automation will be key functions. Media corporations will keep improving voice recognition systems using natural language algorithms.
Since Netflix and streaming services changed content discovery and consumption, every provider has invested in recommendation technology to expose valuable content effectively and accurately. 80% of its content delivery is through recommendations.
2. Immersive experiences with AR/VR and the metaverse – AR/ VR create immersive experiences and boost entertainment with real-time information about their surroundings.
Ariana Grande and Bruno Mars’s concerts in Fortnite last year are a preview of what’s to come. The metaverse may not be as sophisticated as Ready Player One, but it will be where we enjoy entertainment with friends.
Hulu and Disney Plus provide ‘viewing party’ option that enable you to watch movies with friends anywhere in the world.
Deep learning allows AI to immediately mine relevant information, enhancing the experience. Machine Learning (ML) gives AR and VR apps access to massive data sets.
3. Cloud gaming has become prevalent – Cloud gaming will be an important trend in 2024 and searches for queries related to cloud gaming has increased 350% over the last 5 years.
There are over 3 billion gamers worldwide, and only a few have the hardware to play the latest game. Cloud gaming solves the problem by steaming content from remote servers to devices.
PlayStation Now is Sony’s flagship cloud gaming platform. Anyone with a good internet connection can play popular cloud-based games.
4. Improved cybersecurity to detect fraud – The entertainment business is becoming increasingly vulnerable to cyberattacks, proving why cybersecurity is so crucial.
AI can detect suspicious IP addresses and malware/ransomware faster and discover patterns in cyber-attack warnings to expedite phishing and other hacking efforts. Big data will help prevent similar hacks in the future.
An Analysis of Opportunities for Service Providers
Despite the consequences of COVID-19, the US media and entertainment industry is showing a rapid return to growth.
5G, big data, IoT, automation, AI, and blockchain are revolutionizing the U.S. media and entertainment industry and creating opportunities for service providers.
The infographic below summarizes short- and long-term opportunities for media and entertainment companies and service providers.
Stakeholders are creating broadcasting equipment, cloud infrastructure, content delivery networks, and data centers. Meta, Apple, Microsoft, Zynga, Netflix, Comcast, and others are key players.
Many initiatives can be basketed under content development, distribution, and experience.
Case study 1 (content development) – Verizon and Atos are developing immersive digital experiences that thoroughly test 5G environments at the network’s edge. It will have consequences for operational efficiencies and recognizing critical business patterns.
Case study 2 (content distribution) – Sandbox is teaming up with Warner Music Group to create its first music-themed world within the game’s metaverse, allowing fans to interact with artists and create a persistent, immersive social music experience.
Case study 3 (content experience) – Nexstar and VENN will create a Gaming Hub with integrated programming and content, bringing new content and advertising opportunities to consumers and advertisers and new content audiences to Nexstar.
The Western region contributes to 54% of the total technology workforce for the US media and entertainment industry. The major technology centers are the San Francisco Bay Area, Greater Seattle Area, Greater Los Angeles area, Greater San Diego Area, and Greater Denver Area.
San Francisco consists of 39% of the total technology workforce. Google, Meta, Amazon, Apple, and LinkedIn are major companies working on various media use cases.
Draup analyzed the US media and entertainment industry. The report covers focus areas, issues and challenges, industry forecasts, opportunities for service providers, and more.
Draup’s AI-powered Industry Intelligence feature tracks the developments in the U.S. media and entertainment industry. The real-time insights will help service providers identify projects and micro-target outsourcing opportunities across various initiatives.
