Modernizing the Entertainment Industry in the Age of Streaming

The entertainment industry's growth is expediting at an enormous rate with the entry of digital video and social media.

FREMONT, CA: The entertainment industry has been evolving at an unprecedented rate. Digital transformation trends in media and entertainment are genuinely reflected in the patterns of media consumption. Viewers expect content on-demand catering to their demands. The industry executives and customers have also started to ponder about the next big thing in media and entertainment. According to research, their preliminary finding reveals that resilience in the industry in the last few years to the digital disruption underway. In a nutshell, the central thrust of entertainment growth has been and will recapitulate to be digital video, fueled by social media. The value drawn from the current, core business becomes cashflow that media organizations can invest in the new, innovative products and services needed for lift-off of their new organizations and business models.

Measured by gross profit, revenues, and employment, different media, and entertainment companies are not linked to the same gloomy future as digital distribution expands its footprint in the industry. Some areas, especially traditional print sectors like newspapers, books, magazines, and periodicals, have been affected dramatically. It has seen its earnings decrease during that period, albeit by only single-digit percentages. The areas driving growth and counterbalancing for other sectors' losses are film, video games, television, internet-only publishers, and social media.

According to a survey, revenues via conventional channels are down 1 percent, while consumption through the internet and mobile has more than recompensed for these losses, with a healthy 18 percent increase. Conventional print sectors have been able to endure the storm by improving its online presence and monetizing content through digital advertising. Pay-TV channels like cable are firm, which means television customers still value the service of very high quality, dependable delivery of video.

Another significant phenomenon is the fact that the increase of user-generated content online is fueling different forms of production beyond the expert content production of conventional film studios. Social media is increasing this growth, and it is the fastest-growing industry. Social media organizations are starting to make inroads into licensing plus production of original content. The business model is about monetizing users' data and content, including how it shares existing media and entertainment. The gross profit margin of each division is the only ones with double-digit margin increase are internet publishing at 11 percent and social media at 56 percent. After improving tech infrastructure costs, profits from advertising for popular social media platforms are bound to expand exponentially.

The ramp-up in the deployment of 5G networks will make content delivery up to 100 times faster, and the trends will be compounded. In the near future, funds from video content will recommence to grow, and social media will fuel the industry's maturity. Consumers will recapitulate their interest in video, whether it's television, film, video games, or viral amateur content. Demand for mobile video consumption will expand as download speeds, and streaming quality advance, including virtual reality content and new tech mobile settings.