The entertainment industry lives by the principle of survival. Those who cannot update themselves owing to socio-economic changes will find their way out sooner than later. Just on the brink of a new decade, entertainment industry has had the biggest disruption and it has done the industry a world of good
Entertainment industry has had the biggest disruption owing to the Corona pandemic. But the industry did not sit still. It made use of the time by streaming content and delivering it direct-to-home. Despite cancellation of shoots, despite the cast and crew being unable to work together due to issues of social distancing, the entertainment industry has struck its bottomline. The showbiz or media is all about, to quote Vidya Balan from Dirty Picture, ‘entertainment, entertainment and entertainment’.
Various artistes from across the world have come up with webathons and web series to keep the audiences immersed during the pandemic. Streaming in OTT or Over the Top platforms is probably the biggest disruption the entertainment industry has had in decades.
Even small films and some medium budget films released on OTT, while others are waiting for the pandemic to die down before theatres will be thrown open for screenings. In areas where lockdown has been lifted in a phased manner, people are being encouraged to return to big screens, as nothing can beat the experience of watching a mega-budget film on the big screen.
In India and world over, movies are being lined up for 2021, 2022 to enable big screenings. Hollywood giant Warner Bros has announced that it will simultaneously stream and release its big ticket movies in theatres. Closer home, Salman Khan has made it clear that watching a film on the big screen has no competition from watching it on mobiles.
Of course, entertainment is not all about cinema, and artists across the world are trying to connect with their audiences through specially-curated shows and online programming through Zoom calls.
Already, seeing the potential of OTT platform, tickets are also being issued for coordinated shows, while some online attempts are absolutely free of cost. Astro strategist Hirav Shah is a pro at giving business development plans, business strategies for success in business and guide through astro consultation. However, before he can suggest ideal steps to improve business, it is important to have an overview of the industry at large.
Players big and small survive, proving entertainment never fails
Let’s check out some FAQs regarding the entertainment industry, its future course and how it will fare in years to come…
1) What falls under the entertainment industry?
It’s a wide umbrella that includes theatre, film, fine arts, opera, music, literary publishing, television and radio. And now, the latest inclusion would be the OTT platforms that have created a stir and changed the way the world looks at the entertainment industry.
2) What does the entertainment industry mean?
The industry is popularly known as showbiz or show business. It is a tertiary part of the economy and includes sub-industries devoted to entertainment such as cinema, television, radio, theatre, music and now streaming content.
3) Why is the Entertainment industry important?
One of the primary reasons is that it provides a whole lot of employment opportunities, this is including the supply chain and logistics. Right from a street performer to the galaxy of top stars one gets to watch in films and on television, they all earn a living thanks to entertainment. It also plays a great role in fostering the economy as the industry as a whole pays a lot of taxes.
4) Just to have a fair idea, what acts constitute entertainment?
Banquets, music, games, literature, comedy, performance, story-telling, theatre, cinema and film, dance, circus, magic, street performance, parades, fireworks, sport, fairs, expositions and shopping, all come under entertainment.
5) How does the entertainment industry work?
Entertainment industry can be slotted into television, print and films. But it also includes different sectors such as radio, music, out-of-home advertising, animation, gaming and visual effects (VFX) and internet advertising.
6) Is the entertainment industry growing?
In the United States, the entertainment and media market was worth an estimated $678 billion in 2018. This year, it is expected to grow to $720 billion.
7) Is the entertainment industry competitive?
With so many different forms of entertainment, there is steep competition within the industry. Companies and sub-industries are constantly in competition for viewership, subscriptions and sales. Also, with consumers demanding more and more entertainment packed into ever-changing formats, the competition remains at its peak.
8) What is the most sought-after entertainment globally?
Gaming to put it in one word. Right now, gaming is the world’s favourite form of entertainment. In fact, gaming is generating more revenue than television, music and movies did. As per one report, gaming sector’s sales are increasing at an annual rate of 10.7%.
9) Who are the top players in the entertainment world globally?
1) Comcast Corp. (CMCSA)
● Revenue (TTM): $105.6 billion
● Net Income (TTM): $11.5 billion
Comcast is a global media and technology conglomerate that was originally founded as a cable company in the 1960s. In the decades since, Comcast has grown through mergers and acquisitions, buying major companies including media conglomerate NBCUniversal, movie producer DreamWorks Animation, and television services company XUMO in the process. Comcast offers broadband, cable and network television, streaming internet, phone, and other related products, as well as television and film production.
2) The Walt Disney Co
● Revenue (TTM): $69.7 billion
● Net Income (TTM): -$1.1 billion
Disney is a diversified global entertainment company that operates theme parks, resorts, a cruise line, broadcast television networks, and other businesses. One of the company’s most recent additions is the entertainment streaming service, Disney+, launched in fall of 2019. The company produces an array of new television and film content for this service, in addition to providing streaming access to pre-existing content. Disney’s Parks, Experiences and Products segment, and its Media Networks segment, are its two largest sources of revenue.
3) Charter Communications Inc
● Revenue (TTM): $46.6 billion
● Net Income (TTM): $2.3 billion
Charter is a telecommunications company offering cable broadcasting, internet, and voice services t0 o businesses and consumers customers across the US. The company’s Spectrum brand provides cable TV, internet, and home phone services to more than 30 million customers. Spectrum Networks and Spectrum Originals distribute news coverage, sports, and original programming.
4) ViacomCBS Inc
● Revenue (TTM): $32.8 billion
● Net Income (TTM): $2.3 billion
Viacom CBS is a global multi-media company that’s the product of the 2019 merger of CBS and Viacom. The company operates cable networks, content production and distribution, television stations, and digital streaming services, as well as a variety of other internet-based businesses and consumer publishing.
5) Bolloré SA
● Revenue (TTM): $27.7
● Net Income (TTM): $0.3 billion
Bolloré SA is a diversified French holding company operating across a wide variety of industries, including media and advertising. Bolloré is a major stakeholder in Vivendi, the French mass media conglomerate which is also included on this list. Bolloré is best known as a paper, transportation and logistics company, though it’s also involved in energy distribution, rubber and palm oil production.
6) Netflix Inc
● Revenue (TTM): $22.6 billion
● Net Income (TTM): $2.7 billion
One of the leading streaming services worldwide, Netfilx offers a variety of TV and movie entertainment services. Originally based on DVD rental services, Netflix now gets a majority of its business revenue from a subscription-based streaming model. In recent years, the company also has dramatically increased its production of original movie programming, winning a number of Academy Awards. These original movies and shows have been important to its revenue dominance in the entertainment streaming industry.
7) Vivendi SA
● Revenue (TTM): $17.8 billion
● Net Income (TTM): $2.0 billion
Vivendi is a French mass media conglomerate that provides entertainment content and services across many platforms. The company provides digital and pay television services, develops and distributes interactive entertainment, provides telecommunications services, and more. One of Vivendi’s largest operations is Universal Music Group, which is one of the world’s biggest music companies and home to dozens of music labels.
8) Nintendo Co Ltd
● Revenue (TTM): $13.8 billion
● Net Income (TTM): $3.2 billion
Japanese entertainment company Nintendo develops and sells video game hardware and software. One of the most widely recognized and established brands in the growing video game industry, Nintendo’s most recent releases include popular titles such as Animal Crossing: New Horizons, and the Zelda and Super Mario franchises.
9) DISH Network Corp
● Revenue (TTM): $12.8 billion
● Net Income (TTM): $1.3 billion
DISH offers direct broadcast satellite subscription television services, as well as interactive television programming, audio programming, and related products. Through partnerships, the company also offers internet and other services in packaged bundles. The company’s Sling TV video streaming service competes with Netflix and Amazon.
10) Fox Corp
● Revenue (TTM): $12.3 billion
● Net Income (TTM): $1.0 billion
Fox Corp develops and licenses a variety of programming including news, entertainment, sports, and other content. The company distributes its programming through broadcast and cable television, direct broadcast satellite services, and online streaming video platforms. Fox also manages production facilities including studios, sound stages, editing bays, and theaters.
10) What is the net worth of the entertainment industry in India?
The Indian media and entertainment sector was valued at approximately $ 12 bn in 2015 and expected to double by 2020. Out of the various sub sectors, one of the highest growing sub-sectors would be digital advertising with a CAGR of 30%. Further, India is known to have the second largest TV market in the world.
11) How profitable is the entertainment industry?
Research by PWC predicts that revenue from media and entertainment industries will reach an estimated $2.2 trillion by 2021.
12) What is the future of the entertainment industry?
PWC predicts that the growth rates will begin to slow down as the market matures, but the revenue in this area is expected to reach $30.6 billion. While old-school entertainment is fading away, new forms are exploding in the market, giving it a huge fillip. For example, with the advent of Instagram live concerts, many artists are now looking to digital concerts to engage fans and get their earnings back on track.
13) Which countries have the biggest entertainment markets?
● Thanks to global recession, the value of the worldwide entertainment and media market is projected to fall to two trillion US dollars for the year 2020. However, the forecast for 2021 suggests revenue will once more rise to 2.1 trillion US dollars, as in 2019. Further growth is forecast for the following years. In the United States the entertainment media market was worth an estimated $678 billion in 2018 and was expected to grow to $720 billion by 2020.
● It is estimated that in 2020, Chinese video games will generate $31.2 billion in revenue. The compound annual growth rate from 2020 to 2024 will be 5.4%, and revenue will reach as high as $38.5 billion by 2024.
14) Why is digital media the future of the entertainment industry?
Digital media continues to evolve as new tools emerge, consumers make new demands, and the quality and accessibility of the technologies improve. The rise of mobile video, virtual reality (VR), augmented reality (AR), and the more refined use of data analytics will all influence the future of digital media.