Consumers are changing their habits regarding sources of entertainment – they are increasingly looking for more content online. The pandemic wave has contributed significantly to this change. However, the so-called ‘digital disruption’ occurred much earlier –  many of the current trends could be observed even before the pandemic.

The media and entertainment industry has experienced a very steep increase in digital media users since 2018. The main advantage of digital media and online entertainment – the ability to access it from anywhere – amplified the change during the pandemic.

Consumers are starting to get used to their new role – the media and entertainment industry counts on them as active creators of their own content and experiences. At the same time, new technologies such as Edge Computing and 5G are emerging to enable active user engagement.

Also, business models and products are changing – mainly ones that allow consumers to stay connected and interact with other users 24/7. Online entertainment is more personalized, interactive and immersive. With an increasingly demanding consumer, business models must change and adapt.

New model: More online entertainment for less money

If we have seen increased interest in online streaming during the pandemic – a Denmark platform with digital discounts promo-codes.dk marked double demand for discounted subscriptions to platforms such as HBO, Netflix, Hulu and Amazon Prime. For example, the number of uses of HBO Max kampagnekode in Denmark increased by 78%. There was also increased interest in subscriptions on podcast and audiobook platforms – for example, the Podimo rabatkode was downloaded 57% more times in 2020 than in the year before.

On the other hand, there has been a significant shift away from ‘physical’ entertainment sources since 2020. Interest in theater has fallen, and many smaller private movie theaters have even had to close. For example, in the United States, where cinema-going culture has a strong tradition, 32% of small cinemas with a capacity of up to 200 seats closed between 2020 and 2022. Multiplex cinemas are not doing so well either, with around 49% of pre-pandemic multiplex cinema-goers no longer going to the cinema to see new movies.

What lies ahead for the media and entertainment industry?

The reality of entertainment is changing, moving from the physical world to the virtual one. However, consumers are demanding personalized content that they can co-create and socialize while being entertained –  albeit remotely.

In addition to multiplayer video games, video-on-demand (VOD) and subscription video-on-demand (SVOD) are also growing in popularity. These and other online services served as a convenient source of entertainment during the pandemic and have remained in homes since its end. Thus, within a single year, the leading online content platforms (Apple TV, Disney+, and HBOMax) launched their own VOD services.

Experts predict that the value of the global entertainment market will grow to around US$3550 billion by 2028. Brands that don’t fall behind the times and dynamically transform as the industry and user demands change will benefit the most from this amount. Games and social media are leading the way, with new technologies gradually being introduced in both sectors to improve the experience.