Media & Entertainment Market, Currently Pegged at USD 1.7 Tn, Will Grow to Touch USD 2.4 Tn by 2023
Zinnov, a leading global management consulting firm, released its findings from the study on the Global Media & Entertainment Service Provider landscape titled, "Zinnov Zones for Media, Communications and Technology - 2019." The study analyzed the global M&E Service Provider landscape and evaluated services companies on their prowess across multiple sub-segments and technology areas. The study provides a 360-degree view of the Media & Entertainment landscape, covering key technology trends that are driving transformation in the space (OTT, blockchain, AR/VR, etc.). The key market segments evaluated include -Broadcasting, Entertainment, Publishing, Information Services, Gaming, Marketing & Advertising, New Media, and Education.
The goal of the study is to empower business leaders in the Media, Communications & Technology space to take the right decisions for partner selection across technologies and delivery expertise as they expand their digital footprint. The Media & Entertainment market is currently pegged at ~USD 1.7 Tn and is expected to touch USD 2.4 Tn by 2023. Broadcasting is the largest sub-segment, which stands at USD 441 Bn, accounting for more than one-fourth of the overall market.
The study highlights that the global Media & Entertainment industry has entered a hyper-growth phase when it comes to the adoption of new-age technologies and use cases. Over the past couple of years, OTT has disrupted traditional content consumption channels. As a result, Media Companies are acquiring/investing in Online Video Platforms to expand their digital video distribution capabilities. Telecom companies are also investing towards building capabilities for the OTT business. Furthermore, advancements in AI and ML are enabling these enterprises to monetize such streaming solutions more effectively.
Intelligence platforms are also facilitating monetization through enhanced segmentation and hyper-targeted ads.
Digital technologies such as Artificial Intelligence, Virtual and Augmented Reality, Blockchain are also set to unlock new revenue streams in the Media & Entertainment space. In addition to micro-transactions, blockchain is enabling royalties management, smart contracts, and content security for the industry. Currently, the spend on such digital engineering initiatives by Media Companies is pegged at USD 4 Bn and is expected to grow to a staggering USD 11 Bn, witnessing a 3X growth over the next five years.
Speaking about this development in the Media, Communications and Technology space, Sidhant Rastogi, Partner & Practice Head, Zinnov, said, "The Media, Communications & Technology vertical is undergoing a convergence phase: Telecom operators are targeting to enter the OTT/Content business as a part of a concentric diversification strategy. This helps them compensate revenue loss from the traditional voice and data business, and they can efficiently leverage their existing delivery network infrastructure to offer Quality of Service (QoS) to consumers.
The market has witnessed increasing number of alliances/partnerships between telecom operators and content producers in the past couple of years, which is driving a partnership-led growth model in this segment."