The coming decade will prove to be the harbinger of next-gen innovations in the Media and Entertainment (M&E) industry. Storytelling and technology will be an intertwined strand that will propel revenue streams and encourage alliances across the realms of gaming, OTT video, and Internet advertising.
The age of disruption and pushback from traditional players
The world of video games as it stands today would have been almost unimaginable in the bygone era of Game Boys and Mega Drive Minis. Yet, the momentum is still as strong as ever, with rapid revenue growth for video game platforms.
In the domain of media, OTT video is burgeoning across households, leaving behind traditional media houses. Add to this the astronomical spending that brands are willing to undertake for Internet advertising. As a result, traditional players are left with no choice but to clamor for joint distribution models to counter this growth.
The growth of the global media market from 2020 to 2025 is to the tune of almost 56 percent. Furthermore, the market is predicted to grow at a CAGR of 10.6 percent in 2025 to reach nearly $4,414.9 billion in 2030.
These figures demand a deep dive into how the M&E sector is likely to evolve in the coming decade.
What lies ahead? A wave of AI-powered advancements
Consider any OTT, algorithms are being used for digitizing catalogs and inventories. Soon, the focus will be to streamline this process further and create content using algorithms. With Augmented Reality (AR), Virtual Reality (VR), and the recently coined Extended Reality (XR), the lines between real and virtual will dissipate further.
Imminent advancements in AR and VR, combined with the power of 5G networks, will present an unparalleled experience in the visual arena. Previously sloppy graphics will now be more realistic than we could have envisioned.
The people who create and the people who view; the space between them will shrink just as the connection between them will strengthen. Artificial Intelligence and Machine Learning will percolate various fields, and game design processes and building worlds will transform in various ways. Using AI to understand how and why players make the moves they choose to deploy and then reverse-engineering these patterns based on extrapolated insights will help optimize game designs in innovative ways.
Therefore, with the growth trajectory of the gaming sector showing utmost promise, by 2030, gamer experience will dominate across devices.
Will we be content with our streaming capabilities?
Streaming has been at an all-time high, courtesy of the pandemic. With imminent lockdowns, the trend will continue. Streaming will be the unifying factor across gaming and visual media, with a boost from ultra-wideband fiber and 5G.
This is where cloud security management will flourish so that piracy can be restricted once and for all. With an authentication process for online content, content streaming will become transparent and free from illegal viewing.
AI and ML-powered voice search technology will help drive optimized content and provide personalized content consumption journeys to everyone in the coming few years.
Blockchain technology — A formidable accompaniment
With the global blockchain entertainment industry touted to reach over $1.5 billion in the next four years for transactions, the media industry can do more than streamline its payment method in the form of crypto. Blockchain can power universal gaming profiles that can be integrated across any game.
When it comes to media, there’s scope for blockchain to resolve royalty disputes or power video-on-demand platforms. With blockchain technology royalty payments, decreasing IP infringements or monetizing content becomes a transparent hassle-free process. In the coming decade, blockchain will permeate multiple sub-domains of the M&E space.
Authored by Saurabh Tandon, President, Affine Inc.