Global movies & entertainment market is estimated to reach USD 114.93 billion by 2025, according to a new report by Grand View Research, Inc. Introduction to newer marketing and distribution platforms such as IPTV, digital newspapers, DTH, digital cable, and online sales of music & movies is anticipated to boost industry progress.
Decline in revenue growth in mature markets such as the U.S. and few European countries is witnessed. Major players have adopted strategies like regional expansion and distribution partnerships for expansion to untapped markets. These players have shifted their focus on the production of regional content to establish a strong connection with the audience in these markets.
Big studios are witnessed to adopt enhanced marketing strategies that use advanced digital technology for communication. Investment in promotional activates has increased drastically. Introduction of improved promotional channels is expected to positively influence revenue growth.
Rapid increase in streaming of music has created new opportunities for players to expand their business. Reduction in piracy rates due to the emergence of online streaming service providers is anticipated to prevent loss incurred by artists and producers.
The market has a low competitive rivalry due to the presence of a broad range of audience with different tastes. However, players need to compete to gain large share revenue by attracting more audience. Key players concentrate on establishing a strong connection with the audience through promotional events, consumer goods, and television shows.
Lucrative growth in Asia Pacific countries such as China, South Korea, and India is projected. This is due to the presence of higher young population, rapid adoption of digital technology, and increased disposable income of families in these countries.
Further key findings from the study suggest:
- Movies dominated the market with 56.1 % share revenue in 2016.
- Innovation in the production of movies through advanced graphics techniques contributes to lucrative growth.
- Release of 3D motion pictures with sound & visual effects giving users the experience of virtual reality is anticipated to positively influence revenue growth.
- Music & video are poised with fastest growth rate owing to the rapid adoption of online streaming by the audience.
- Emergence of online streaming service providers reflects decline in piracy rates in developed regions.
- Influence of Hollywood on other regional cinemas is expected to drive progress in other countries.
- Efforts to meet higher quality standards and expectations of the audience is attributive to this progress.
- Dominance of Hollywood in the global market is a major factor that contributes to the largest revenue share of North America in 2016.
- However, close competition to Hollywood from emerging markets such as China and India is projected to drive growth for APAC region.
- Key players operating in this industry include CBS Corporation and CBS Broadcasting Inc., Sony Corporation, Disney, Time Warner, 21st Century Fox, Viacom Inc., Comcast (NBCUNIVERSAL MEDIA, LLC. & DreamWorks Animation LLC.).
- Major players focus on the development of regional content to grab the untapped markets.