Report Description

The digital media & entertainment market is anticipated to grow during the forecast period due to digital transformation in industries, increasing smartphone penetration, and podcasts boom. 

Digital Media & Entertainment Market Scope

The scope of the global digital media and entertainment market is vast and encompasses various industries, services, and technologies that revolve around the creation, distribution, and consumption of digital content.

Television includes video-on-demand platforms, and internet-based TV channels that provide access to television shows, movies, documentaries, and other video content.

Music and radio encompass digital music streaming platforms, online radio stations, and podcasts that offer a wide range of music genres, radio shows, live broadcasts, and audio content.

Electronic Signage (E-Signage) includes digital display systems and electronic billboards used for advertising, information dissemination, and branding purposes in public spaces, retail stores, transportation hubs, and other locations.

Others include podcasts, which are digital audio programs covering a wide range of topics, and e-books, which are digital versions of printed books that can be read on e-readers, tablets, or mobile devices.

Digital Media & Entertainment Market Overview

The global digital media and entertainment market encompasses a broad range of industries and services that leverage digital technology to create, distribute, and consume media content. The market has experienced significant growth and transformation in recent years, driven by advancements in technology, increasing internet penetration, and changing consumer preferences.

One of the key drivers of the global digital media and entertainment market is technological innovation. The rapid development of digital technologies, such as high-speed internet, mobile devices, streaming platforms, virtual reality, and artificial intelligence, has revolutionized the way content is created, delivered, and consumed. These technologies have enabled seamless access to a wide range of media content, personalized recommendations, interactive experiences, and real-time engagement with audiences.

Global Digital Media & Entertainment Market Drivers

The global digital media market is driven by several key factors that contribute to its growth and widespread adoption. These drivers include technological advancements, increasing internet penetration, changing consumer preferences, and the rising demand for digital content across various platforms and devices.

Technological advancements play a crucial role in shaping the digital media market. Continuous innovation in digital technologies, such as high-speed internet connectivity, mobile devices, streaming platforms, and cloud computing, has facilitated the creation, distribution, and consumption of digital content. Advancements in video and audio compression technologies have significantly improved the quality of streaming media, enabling seamless and high-definition content delivery.

The rising demand for digital content across various platforms and devices has created a thriving market for digital media. Streaming services have gained immense popularity, offering a vast library of movies, TV shows, music, and original content. Social media platforms have become key channels for content sharing and engagement, with video content playing a central role. The exponential growth of online video platforms, user-generated content, and influencer marketing has further fueled the demand for digital media.

Digital Media & Entertainment Market Trends

Artificial intelligence (AI) has emerged as a significant trend in the digital media industry, impacting various sectors such as TV, VFX, and radio. Entertainment organizations have access to a vast amount of unstructured digital data, and AI tools are instrumental in organizing and analyzing this data. AI, machine learning, and natural language processing are effective in predicting user engagement with content.

Media & entertainment organizations possess extensive repositories of user digital data, which is typically unstructured. AI has introduced a human-like dimension to the mining and utilization of this digital data.

AI is particularly useful in quickly estimating and retrieving emotional changes, providing valuable insights into customer behavior and digital media consumption trends. This accurate data enables organizations to offer personalized recommendations and improve content based on user preferences.

Streaming applications are leveraging AI technologies and smart machine learning algorithms to offer customized video, audio podcasts, and high-quality streaming music that aligns with users' interests and preferences.

AI innovations assist in classifying digital data based on common features, enabling companies to predict user engagement and unlock better monetization opportunities. Platforms like Spotify utilize AI solutions to provide personalized music recommendations, continually improving the accuracy and specificity of these recommendations as algorithms evolve and Big Data expands.

Digital Media & Entertainment Market Challenges

The global digital media and entertainment market faces several challenges that impact its growth and development. These challenges include piracy and copyright infringement, content discovery and fragmentation, data privacy and security concerns, technological advancements, regulatory compliance, and changing consumer preferences.

Piracy and copyright infringement pose significant challenges to the digital media and entertainment industry. The ease of digital content replication and distribution has led to widespread unauthorized sharing and illegal downloads, resulting in revenue loss for content creators and distributors. Protecting intellectual property rights and implementing effective anti-piracy measures remains a constant challenge for the industry.

Content discovery and fragmentation have become complex issues in the digital media landscape. With the abundance of digital content available across various platforms and channels, consumers face challenges in finding relevant and quality content. The fragmentation of content across multiple streaming services and platforms adds to the difficulty of content discovery, requiring improved search and recommendation algorithms to enhance user experiences.

Recent Developments

  • In June 2023, Emerge, a company specializing in the development of a multi-sensory communication platform, has entered a strategic multi-year engagement with The Walt Disney Company. This collaboration represents a significant milestone for Emerge as it advances towards its goal of creating a new paradigm for emotional connection, bridging the gap of distance and time. In a world where disconnection is increasingly prevalent, Emerge believes that this partnership will provide much-needed connections. Through the integration of Disney's content into Emerge's personal connection platform, users will have the opportunity to share multi-sensory experiences and engage with friends and family around the world, all from the comfort of their own homes. Initially focusing on one of Disney's top franchises, individuals will be able to physically experience sensations like a "virtual high five" or embody their favorite superpowers, all without the need for gloves or controllers.
  • In June 2023, Comcast introduced NOW TV, a new streaming service that offers over 40 live channels from A+E Networks, AMC, Hallmark, and Warner Bros. Discovery. In addition, the service includes more than 20 integrated FAST (Free Ad-Supported Television) channels from NBC, Sky, and Xumo Play, along with a subscription to Peacock Premium at no extra cost.
  • NOW TV is designed to cater to value-conscious consumers who seek a convenient and straightforward entertainment product, featuring high-quality programming, movies, top shows, live sports, and news. The service is set to launch in the upcoming weeks and will be available to Xfinity Internet customers. It comes with a monthly price of USD 20, without the need for any additional equipment, and provides flexibility for users to sign up and cancel anytime they desire.
  • In April 2022, the merger between WarnerMedia and Discovery has been finalized, resulting in the creation of a new company called Warner Bros Discovery Inc. This combined entity has commenced trading on the Nasdaq stock exchange.

Global Digital Media & Entertainment Market Opportunities

Consumer preferences and moods are influenced by various factors throughout different times of the day. To provide a seamless user experience, recommendations for users should be presented in a clean and user-friendly interface. The challenge for businesses lies in gaining and retaining users' trust, ensuring that the information provided is unbiased, even as their tastes and preferences dynamically change.

To address this challenge, recommendation systems should strive to encourage the discovery of new content, thereby enriching the cultural lives of customers. For example, individuals searching for educational video-on-demand content may also be interested in exploring informative content spanning topics such as science, history, or literature.

Personalized content can take various forms, including gamification elements, interactive quizzes, surveys, GPS-based map applications, retargeted ads on social media platforms, and personalized emails. These approaches allow businesses to tailor their offerings to individual users, enhancing engagement and providing a more personalized and relevant experience.