Is Digitalization the Future of the Entertainment Industry?

    The entertainment industry has tremendously evolved from what it used to be and has become smarter. This evolution of the entertainment industry has also changed the way in which people entertain themselves through the services of this industry.

    Present-day entertainment is fueled by digital technologies and is highly user-centric. The control that the viewers have over what they want to watch or listen is more than ever before, which is significant proof of the tremendous growth that this sector has made.

    As a result, it is only natural to wonder, ‘Will digitalization be the driving force of the entertainment sector in the future?’. This blog will provide a complete answer to this question and will throw light on what makes digital technology a prominent medium for entertainment in the coming years.

    However, let’s start the blog by understanding the present scope of the entertainment sector.

    Current Situation of the Entertainment Industry

    Entertainment is one of the largest industries in terms of revenue generation, with the year-end revenue for 2022 projected at USD 29.35 billion. The figures are only expected to increase in the coming years owing to the ever-rising demand for entertainment services.

    Today, people of all age groups and generations avail entertainment services for leisure. Entertainment is one of the best ways to eliminate boredom and is a great time killer, making it a highly demanded form of service. It is due to these benefits, and many others, that the entertainment sector is expected to cross USD 40.74 billion in terms of revenue generation.

    Today, the gap between entertainment seekers and entertainment providers has significantly reduced, owing to the increasing use of digital technologies. As the scope of digital entertainment increases, the market worth and demand for traditional entertainment are diminishing.

    In the upcoming section, we will thoroughly discuss how digital entertainment is overtaking its traditional counterpart.

    Digital vs Traditional Entertainment

    Like many other industries, the entertainment industry is also undergoing rapid digital transformation. Present-day entertainment seekers prefer digital entertainment over traditional one as this approach is more innovative and user-friendly. The digitalized form of entertainment, often referred to as OTT (Over The Top) entertainment, is widely popular and in high demand.

    Long gone are the days when people used to sit in front of a television or visit a theatre at pre-fixed times to entertain themself. Today, all one needs to do is click a few times on a digital screen, and they can receive the entertainment of their choice.

    This traditional-to-digital transformation of the entertainment industry has also changed the way in which entertainment service providers offer their services. The emergence of OTT services has been revolutionary for entertainment businesses as well as entertainment seekers and has resulted in their high demand. In the upcoming section, we will discuss numerous ways in which digital entertainment outshines traditional entertainment.

    Why Does Digital Entertainment Outshine Traditional Entertainment?

    5 Reasons to Digitalize

    On-demand Availability

    We discussed in the earlier section how traditional entertainment demands for people to be present in front of a television or at a theatre at a given time to receive entertainment services. Owing to this rigidity, the viewers have to either change their overall schedule or miss their favorite dramas and movies.

    Naturally, this isn’t a very practical option, leaving viewers with no choice but to miss out on entertainment. However, with the digitalization of the entertainment industry, viewers can receive entertainment services on their demand.

    To elaborate, on-demand video and audio streaming makes it possible for viewers to stream dramas, movies, shows, podcasts, and other entertainment shows at any time. These shows are often recorded and stored on clouds, and the viewers can stream them at any time.

    This on-demand availability of entertainment services makes it possible for viewers to have a regular schedule and still not miss out on the entertainment of their choice.

    Convenient

    Today, convenience is one of the major factors that determine whether or not your target market will like your goods and services. As a result, it is in the best interest of businesses to make their offerings as convenient as possible, and the entertainment industry is no exception in this matter.

    However, it cannot be denied that traditional entertainment services are far from being convenient. To explain, people often have to travel from one place to another in order to attend a concert, see a match, or even watch a movie.

    OTT services form a great alternative in this aspect and are highly useful for making entertainment more convenient and comfortable. Today, people can watch anything and everything from the convenience of their homes through on-demand video and audio streaming. You can stream movies, watch live concerts and sports matches, and do a lot more, all of this with the digitalization of entertainment services.

    Increased Revenue

    Revenue is one of the most important aspects of every business and is essential for its survival and growth. Naturally, businesses from all industries and niches aim to maximize their revenue for better growth and profitability.

    One of the major benefits of digitalizing entertainment is increased revenue for entertainment providers. To explain, digitalization reduces the overall cost of entertainment for numerous industries and makes it possible for them to increase their profitability.

    Moreover, as mentioned earlier in the blog, digital entertainment is more accessible as compared to its traditional counterpart. As a result, offering your entertainment services digitally guarantees more audience and, ultimately, a higher revenue as compared to traditional entertainment.

    Therefore, service digitalization is a billion-dollar idea for entertainment businesses in 2022 and has the potential to boost business growth.

    Less Expensive

    Cost is one of the major factors that viewers consider when determining whether or not to avail entertainment services. It is also based on this cost that the viewers decide how much value the entertainment services serve for them.

    As a result, it is in the best interest of entertainment service providers to offer cost-efficient solutions to their clients. However, it is commonly known that most entertainment services (especially concerts and sports matches) have soaring high ticket prices, which are economically unviable for a majority of people.

    Digitalization of entertainment services is an excellent solution in this context. By digitalizing entertainment services, entertainment service providers can reduce the overall cost of their services and make them available to a wider audience.

    To elaborate, digitalized entertainment helps in reducing numerous infrastructure costs of offering entertainment. Moreover, digital concert or sports match tickets are less expensive than real ones in most cases. This not only makes entertainment more accessible but also empowers people to choose an option that serves the value for their money.

    Wide Option Availability

    Traditional entertainment is highly limited to watching whatever is available at the moment and limits the viewer’s preferences. For example, if you wish to watch a drama on television, you will have to choose from a very limited number of shows that are being aired during that time.

    In many cases, the viewers tend to abandon the idea of entertainment when their preferences are denied. This not only comprises the user experience but also results in a loss of revenue for entertainment businesses.

    However, this is not the case with digitalized entertainment. One of the major advantages of digital entertainment over its traditional counterpart is its ability to deliver on-demand entertainment services. To elaborate, digital entertainment enables users to browse and select from a wide category of entertainment options.

    Netflix is one of the best examples in this context. The platform offers more than 17,000 titles that include series, movies, dramas, and other forms of audio-visual entertainment for the users to stream on demand.

    These are a few of the many ways in which digital entertainment is better than the traditional version. Of course, while digital entertainment might sound like an enduring concept, it also comes with certain limitations. In the upcoming section, we will briefly discuss the limitations of digital entertainment.

    Limitations of Digital Entertainment

    Drawbacks

    More Time Wastage

    One of the most prominent advantages of digital entertainment is increased availability. With digital entertainment, people can stream the videos and audio of their choice at any time from anywhere.

    It cannot be denied that this increased availability of entertainment comes with a risk of more time wastage. To explain, having an entertainment source right in your hands (i.e., a mobile phone) can be distracting and can significantly reduce your productivity.

    There have been numerous instances of people using mobile phones for entertainment during their work hours, therefore compromising their work efficiency and productivity. Therefore, it cannot be denied that the digitalization of entertainment can have tremendous effects on a person’s efficiency and can contribute to increased time wastage.

    Limited Censorship

    Censorship is one of the most important aspects of every entertainment form that exists. However, it is commonly known that the scope of censorship is highly limited in OTT entertainment.

    This is because OTT platforms operate individually and usually do not adhere to government policies. Moreover, most of the content available on OTT platforms is not age restricted or has any particular limitation for viewership.

    Today, most of the OTT platforms focus on uploading content that enchants the users and entertains them, regardless of its impact on the audiences. As a result, in many cases, viewers are exposed to content that they are not meant to view. This is especially the case with underage users, for whom exposure to such content can be very harmful.

    Network Constraints

    We are sure that by now, you know and understand how OTT platforms work. The viewers need a stable and high-quality internet connection in order to access the platforms and stream the content of their choice. It is commonly known that streaming content online consumes a lot of data, and using low-speed internet often results in high buffer time and declined streaming experience.

    However, it is challenging to have a stable internet connection at all times, especially in underdeveloped regions where basic internet is still considered a luxury. This factor tremendously limits the accessibility of OTT entertainment, excluding those who do not have access to high-speed internet.

    Questionable Security

    Just like other forms of entertainment, the viewers have to pay a certain sum of money to the OTT platforms in order to avail their services. These payments are made digitally through debit/credit cards and other digital payment options.

    Of course, making a payment digitally requires the users to provide highly sensitive information (card numbers, pins, passwords, etc.). However, it is commonly known that digital payments are highly prone to security risks.

    There have been numerous cases of companies misusing the sensitive information of the users, many of which have resulted in money laundering and scams. Therefore, the users must only enter sensitive information on the platforms that they trust and are confident about.

    These were a few drawbacks of digital entertainment. You would have realized that the benefits of entertainment digitalization clearly overshadow the drawbacks. It is due to these advantages that more and more businesses are investing in creating a digital video streaming platform. In the upcoming section, we will discuss the different types of digital platforms and technologies that businesses use to offer OTT services.

    Technologies for Digital Entertainment

    Technologies t

    Mobile Applications

    Mobile applications are one of the most popularly used forms of digital technologies. They are fast and highly user-friendly, making them ideal for digital streaming. Numerous digital streaming applications exist in the market and are being widely used by the common people.

    These applications deliver a high-end UX and truly serve the purpose of digital streaming. To elaborate, one can get a high-end streaming experience from anywhere in the world by using these mobile applications.

    Websites

    In recent times, the market for on-demand streaming websites has tremendously increased. Today, most video streaming service providers offer a web app as well as a mobile app for their platform. These web apps are fast performing and deliver an app-like streaming experience on a desktop or phone screen.

    Netflix is one of the best examples in this context. The on-demand video streaming service giant offers a highly functional website with all the features of the mobile application and, in many cases, even more than those. Therefore, our suggestion is to adopt this concept in your business and consider creating a video streaming website for similar success.

    Virtual Reality

    VR (Virtual Reality) is a high-end technology with implementation in numerous industries. Today, VR consoles are widely used in on-demand video streaming and are known for giving a hyperrealistic experience to streamers.

    VR consoles take the on-demand video streaming experience to the next level and are highly useful for delivering a seamless and world-class digital streaming experience.

    Metaverse

    Metaverse is a digital world powered by VR technology and is commonly used to create world-class online streaming platforms. With metaverse, entertainment service providers can offer their services digitally and efficiently.

    Today, metaverse-based on-demand streaming is used to stream music concerts, sports matches, podcasts, public events, movies, dramas, and a lot more. This makes metaverse a promising technology for the OTT sector.

    Summing It Up

    The entertainment sector has undergone a tremendous traditional-to-digital shift and has become smarter than ever before. Today, people prefer to receive entertainment services digitally for numerous reasons, from high convenience to increased availability and more value for money.

    All of this is contributing to the rapidly growing market for digital entertainment and a declining demand for traditional entertainment. By utilizing high-end technologies and creating an OTT platform, the entertainment service providers are certain to get maximum benefits from the industry’s digitalization and witness tremendous business success in the long run.


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