Nothing’s a better source to release daily life’s stress than entertainment. However, the concept of fun varies for each individual.
Think of the moment you spend playing your favorite eSports game. Or binge-watching a Netflix show on the weekend. Leisurely, right?
It shows the magnitude of the sector that goes beyond the movies, dramas, and music. The various options and exponential demand make media and entertainment an impactful industry for the economy.
Let’s delve into this multi-billion dollar industry’s market stats, trends, and predictions.
Cinema and Television
The showbiz world significantly boosts local businesses and the economy, including cities and small towns.
A movie or television show generates revenue through job opportunities and related infrastructure development. As reported by Motion Pictures, the shoot of Black Panther in Georgia created an income of around $26.5 million in wages collectively for over 3,100 local workers.
However, this entertainment industry also witnessed a worse phase as the Covid-19 pandemic hit the world. Shoots and cinemas had to close their overall business during the lockdown. That said, the revenue dropped to 70.4% in 2020, as per PwC.
To weather the storm post-covid, many production studios started adapting to the challenges of the past two years. For instance, they expanded their audience reach by streaming their movies on OTT platforms. The industry understood that coexisting is a way to bounce back.
It also fights back by providing experiences the audience can’t get at home. The industry focused on evolving. Today, many production houses are creating immersive movies using IMAX cameras, 3D, 4D, and 5D technologies. Hence, the global revenue for this segment in 2021 was $90.92 billion.
Hence, the new-age vision is once again driving the growth of the theatrical segment. The revenue for the film industry can boom up to $169.68 billion by 2030, according to a Grand View Research
During Covid-19, OTT platforms flared the new market trend. An ever-growing number of viewers switched to streaming channels to watch a movie or show with just one tap.
Dominant streamer Netflix redefined the entertainment segment. The company also invested in international series and movies to engage massive audiences worldwide.
Have you watched Squid Game (South Korea) or Money Heist (Spain)? You’re already part of its global revenue model.
Other OTT brands like Disney+, Amazon, and WarnerMedia followed the lead.
Further, the rising demand for leisure and entertainment from developing countries like India, the Philippines, and Australia accelerated its market growth.
Offline and Online Gambling
With more countries relaxing laws, the gambling segment is becoming an integral part of the economy. Besides, it’s a vast sector that covers various betting genres, including casinos, sportsbooks, racebook, and lotteries.
The commercial gambling industry has shown no signs of slowing down for the last few years. According to the American Gaming Association, offline casinos earned $12.30 billion, while sports betting made $2.79 billion in the first quarter of 2023. Further, land-based casino venues also indirectly impact other key markets of the region, such as tourism and hospitality.
The casino hubs of the world, like Las Vegas and Hong Kong, attract several tourists throughout the year. Gambling fanatics reach these prime casino destinations to enjoy table games and gaming slots for ultimate entertainment. These visitors need access to hotels, restaurants, and transportation in the new location to stay comfortably. So they don’t just generate income for casino owners but also for other businesses.
There’s also a drastic economic impact worldwide with the legalization of online betting. In a positive way, of course!
The advent of digital gambling platforms created a new global revenue stream for the economy. Online sportsbooks recorded revenue of $63.53 billion in 2022. Experts predict the market will only grow more between 2023 and 2030 by 11.7% CAGR.
Video Games and eSports Production
Video games are incredible entertainment mediums for the youth. Today, Nintendo, Sony, PlayStation, and Xbox are household names. Moreover, the gaming industry is evolving, indicating a bright future.
The pandemic brought the world closer to this segment through various channels, such as eSports tournaments, Free-to-Play games, and mobile gaming.
PwC report says the gaming industry could be worth $321 billion by 2026. Hence, it’ll facilitate employment prospects and financial stability. From game developers, streamers, and sponsors to players, everyone will cash in with this entertainment segment.
The growth of the media and entertainment industry created myriad new job opportunities. The vast segment triggers a chain of activities that require a skilled workforce to run businesses successfully.
It’s not merely about actors, screenplay writers, directors, and producers. There’s an array of employment prospects available in this sector.
Here’re some key job roles.
- Personal Assistants: Managing their employer’s schedules, calls, appointments, travel arrangements, and business-related expenses.
- Animators: Creating animations for various projects, including movies, commercials, video games, and TV shows.
- Lawyer: To deal with legal issues, such as drafting contracts, negotiating, filing copyright suits, and endorsement agreements.
- Make-up Artist & Hairstylist: Providing make-up and beauty services for movie stars, television actors, and actresses.
- Audio engineer: Collaborating with directors or musicians for audio editing and mixing.
- Voice-over artists: Providing the voice for characters in animated movies, documentaries, video games, and commercials.
- Video Editors: Editing video clips or footage for teasers, trailers, movies, and shows.
- Event planner: Organizing events for film premieres, concerts, and charities.
- Booking Agents: Booking live shows for performers and public figures.
- Social Media Manager: Creating content and social media strategies to create a digital presence.
- Publicists: Managing artists’ public image through positive press and media coverage.
- Channel Head: Analysing audience and data to improve the channel’s viewership.
1. What are the categories in the entertainment industry?
The standard categories in the entertainment industry are cinema/theater, games, music, and sport.
2. Why is the entertainment industry so important?
The entertainment segment helps understand the world and improves mood.
3. What are the contributions of the entertainment industry to the world economy?
The entertainment industry offers various direct and indirect employment opportunities that boost the local and global economy.
The constantly evolving entertainment landscape will require a massive workforce in the coming years. The multiple opportunities mean the industry has a powerful impact on driving revenue beyond the confines.
Undoubtedly, the burgeoning segment plays a crucial role in the worldwide economy.