Why is the entertainment industry showing tremendous growth lately?

Technology is the main driver of the considerable growth of recent years. Mobile technology, high-speed internet via optical fiber and 4G/5G networks and the development of cloud services have strongly contributed to the growth of the entertainment sector. Such advancements in technology have enabled new niches and genres. The iGaming sector has 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 a fast internet connection. Additionally, TV shows and the music industry have embraced streaming services, leading to massive growth in VR technology.

Streaming, spearheading growth

The entertainment industry will grow by 6.7% in 2022 and at the current rate the global industry will generate over $2.6 trillion by 2025. The biggest growth in the entertainment industry is in streaming video. Estimates call for double-digit growth through 2025, when streaming services could total $81.3 billion.

Netflix’s successful model is driving such rapid growth, and while Netflix itself may face some issues, other vendors in the now heavily saturated market are driving 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.

Cinema is no exception. In 2021, major studios produced over 943 films, more than 100% more than previous years. Films are the source of cinema revenue, but many exclusive films are on pay-TV and streaming service platforms.

The game is huge

If you think video streaming is extensive, it’s still way below what gaming brings to the table. Video games and streaming are growing at a slower rate of 5.7% but are expected to generate $200 billion in revenue in three years. Virtual reality is growing on the fastest trajectory of 30% in the gaming industry, but it will only be worth less than $7 billion.

The Esports movement continues to grow, and mobile gaming is the next big thing, with more and more games coming to mobile.

The iGaming industry is also growing at an unprecedented rate, with estimates reaching nearly $98 billion in market value by 2025.

The music is for you and me

Although relatively small compared to gaming or video streaming, with a $30 billion market, music is a massive business in the entertainment industry. The biggest growth carriers are streaming services like Spotify, Deezer, YT Music and similar platforms. In addition to streaming music content, live performances are making huge strides again after a few slower years in addition to streaming music content.

Conventional television remains the largest segment in the world and will generate the most revenue, but it is also the only one to experience negative growth with a forecast decline of 1.2% over the next three years.

Live sports and news are two cornerstones of the traditional broadcast industry, and sports, in general, also contribute to the entertainment industry itself.

Mobile Revolution

While only 2% of data traffic came from mobile phones in 2011, today more than 60% is generated on smartphones. Indeed, mobile phones with large OLED screens and powerful processors are now arriving in all corners of the world, expanding rapidly in places like Africa, Asia and South America.

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