The globally hit Coronavirus Pandemic has widely affected entertainment industries and is changing the way they operate. While the revenues have stumbled largely, analysts expect that the sectors would see a strong rebound in the longer-term resulting from new trends such as the growth of paid streaming, positive regulatory developments, and growing demand for virtual events. Today, the content has been pushed to the digital media, creating a blueprint for what the near future might look like for the film and music industry!
Covid-19 Impacted OTT Platforms Positively
While the music and film industry is growing faster than ever, with new platforms coming up and the Pandemic re-shaping the way both industries operate. OTT platforms such as Amazon Prime, Hotstar, Netflix, and so on are re-shaping how audiences connect with the content. Goldman Sachs has estimated that the online streaming market could grow to have approx. 1.2 Billion users by the year 2030, which would be four times higher than active paid subscribers in 2019.
It is no news that Covid-19 has brought a long pause to the global film industry. Even before the Pandemic, OTT and streaming video-on-demand (SVOD) had a significant impact on the industry. The traditional ways were already changing. Netflix’s reports show that they have more than 183 Million global active customers, adding new 15.8 subscribers, thus having 22% growth in 2020. Needless to say, the Pandemic has affected the OTT market positively; the market has made $155.6 Billion and an increase of 30% active viewers.
Impact of Artificial Intelligence on the Entertainment Industry
For established media houses, whether the music industry or film industry, there is a huge opportunity to reuse the content archives by making effective use of Artificial Intelligence. It is estimated that the advancement of Artificial Intelligence will gradually automate the expensive, complicated, and time-consuming processes of music and film creation, which would lead to cutting out of intermediaries in both the industries.
Hollywood is already replacing artists with AI. Warner Bros has recently announced a deal with a start-up in Los Angeles, Cinelytic. This company uses data and algorithms to predict any film’s success even before it is made. However, both Warner Bros and Cinelytic have claimed that they will use this technology only for marketing and distribution purposes. Humans will still be involved in decision-making processes.
The music industry is widely adopting AI Technology too. A McKinsey report says that approximately 70% of companies will adopt at least one AI Technology by the year 2030. Tech companies are already investing in a future wherein AI creates music or at least assists musicians in making music. Sony has developed Flow Machines, an AI system that has already released an AI produced song ‘Daddy’s Car’.
The Need To Develop Innovative Trends
It has been estimated that a six-month shutdown will cost the music industry more than $10 Billion in sponsorship, with the biggest casualty being the live performance revenue.
This is why it is of utmost importance to develop new and innovative manners to monetize music consumption and film screenings. For instance, Artists like Jimmy Fallon adapted to the new circumstances and started shooting from their home’s comforts. Recently, Fortnite hosted a virtual rap concert that attracted approximately 30 Million live viewers.
While the Pandemic brought many changes in both the film and music industry, what remains constant is the audience’s hunger for good entertainment. One cannot deny that Covid-19 has tapped lots of unexplored creativity, bringing out quite a lot of unseen talent! The face of the entertainment industry is changing, all for the better!