PORTLAND, Oregon: Allied Market Research published a report, titled, “Online Entertainment Market by Form (Video, Audio, Games, Internet Radio, and Others), Revenue Model (Subscription, Advertisement, Sponsorship, and Others), Devices (Smartphones; Smart TVs, Projectors, & Monitors; Laptop, Desktops, & Tablets; and Others): Global Opportunity Analysis and Industry Forecast 2021–2027.” According to the report, the global online entertainment industry generated $183.1 billion in 2019, and is expected to garner $652.5 billion by 2027, growing at a CAGR of 20.8% from 2021 to 2027.
Prime determinants of growth
Low data tariffs, increase in smartphone penetration, and technological advancements drive the growth of the global online entertainment market. However, limited digital infrastructure and digital illiteracy in some of the regions hinder the market growth. On the other hand, rise in digital advertising expenditure and digital transformation in the media & entertainment industry present new opportunities in the coming years.
As nearly quarter of the world’s population has faced lockdown during the Covid-19 pandemic, people have opted online platforms for entertainment. There has been 12% surge in streaming across various platforms, according to Forbes.
Internet traffic has experienced a growth of nearly 50–70% due to lockdown and most of the bandwidth has been consumed by online entertainment applications.
There has been significant rise in monthly or yearly subscriptions. Online ticketing platforms whose revenues were based on outdoor events have brought online events.
The video segment to maintain its lead status throughout the forecast period
Based on form, the video segment contributed to more than two-fifths of the global online entertainment market in 2019, and is projected to maintain its lead status throughout the forecast period. This is attributed to surge in prominence of the streaming video content from various platforms such as Hulu Plus, Netflix, Amazon Instant Video, iTunes, and others along with release of various web series to attract customers. However, the internet radio segment is expected to portray the highest CAGR of 27.5% from 2021 to 2027, owing to declining costs of streaming, ease in Wi-Fi connectivity, rise in smartphones usage, and new entrants in music streaming industry.
The advertisement segment to maintain its dominance by 2027
Based on revenue model, the advertisement segment held the highest market share in terms of revenue with more than half of the global online entertainment market in 2019, and will maintain its dominance by 2027. This is due to increase in online traffic and surge in brand awareness & improvement in customer conversion rate from social media platforms through advertisements. However, the subscription segment would grow at the highest CAGR of 25.5% during the forecast period, owing to flexibility in terms of billings & payments, ease of distribution, and ability to become offer reliable & consistent revenue stream.
North America to lead throughout the forecast period
Based on region, North America accounted for the largest share in terms of revenue, accounting for nearly two-fifths of the global online entertainment market share in 2019, and is estimated to continue its lead position throughout the forecast period. This is due to presence of high bandwidth connection at affordable rates, huge smartphones user base, and high digital literacy rate. On the other hand, LAMEA would witness the highest CAGR of 26.6% from 2021 to 2027, owing to the growth of the music industry with rise in penetration of the online streaming platforms such as Spotify and availability of internet connection at affordable rates.
Market players grabbing the largest pie:
Allied Market Research (AMR) is a full-service market research and business-consulting wing of Allied Analytics LLP based in Portland, Oregon. Allied Market Research provides global enterprises as well as medium and small businesses with unmatched quality of “Market Research Reports” and “Business Intelligence Solutions.” AMR has a targeted view to provide business insights and consulting to assist its clients to make strategic business decisions and achieve sustainable growth in their respective market domain.
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Source: PR Newswire