During the lockdown, scores of people around the world were stuck at home with very little to do. While movie theaters and concert halls were empty, the demand for home entertainment and gaming skyrocketed.
This also impacted the need for media and entertainment software developers as companies scrambled to create new apps to meet the growing demand.
If you are interested in the media & entertainment software development industry, you’ll need to understand why this demand exists and how you can benefit from it.
What is Fueling the Need for Media and Entertainment Software development?
The Motion Picture Association released their annual THEME report for 2020, which gave a lot of insight into the reasons media & entertainment software development services are in high demand right now.
1. Exciting New Content
Netflix was already a global hit, which is why many prominent studios and brands felt that the writing was on the wall for movie theaters and DVD rentals.
Disney, Universal, and Warner Bros joined with Netflix, Hulu, and Amazon to bring premium movies and high-budget TV shows to viewers staying at home during the lockdown.
Theatrical viewing has been in decline for a number of years, showing a decline of 18% in 2020. Only 15% of the global entertainment revenue can be attributed to movie theaters, a decline from 43% in 2019.
Instead, consumers are relying on video-on-demand, streaming video, and electronic sell-through for their entertainment, which means that media and entertainment software development providers have to constantly improve and create streaming technology and apps for the market.
2. Digital Is Replacing the Physical
If you own or work for a media and entertainment software development firm, you already know that the demand for digital entertainment is skyrocketing.
In the US, home and mobile entertainment is worth more than $30 billion dollars, compared to the $2.2 billion spent in movie theaters.
Physical entertainment assets like DVDs and Blu-Ray discs are dying out as home theater systems improve and many streaming services offer premium rentals to subscribers.
Digital entertainment revenue is up 33% from 2019, and it takes up more than 80% of theatrical revenues.
3. Online Video Subscriptions
YouTube is the biggest media app in the world, and online streaming video subscriptions are growing at more than 30% every single year.
This is true across the globe, as Netflix has gained more new subscribers outside the US than within their own borders.
Netflix aired nine out of ten of the most-streamed original television programs in the world – the only one that didn’t belong to their channel was the Mandalorian on Disney+.
This demonstrates that online video is slowly replacing conventional television viewing as well. Many TV stations, including Showtime and HBO, have gone digital to prepare for this trend.
4. Tech Advantages Are Needed
Of course, the dramatic increase in demand and the shift in how media is consumed have negative consequences too.
Binge-watching is the preferred way of consuming content, meaning that viewers will complete an entire season in a day or over a weekend.
Demand is far outweighing supply as channels scramble to produce original content, with COVID-19 wreaking havoc with flights and film schedules.
This is why many streaming companies will approach a media and entertainment software development agency asking for ways to improve the user’s viewing experience in the hopes of gaining a competitive advantage.
If you are one of the lucky media and entertainment software developers out there being courted by Netflix, Disney+, and Amazon Prime, you’ll have the opportunity to be part of a real global entertainment revolution in the coming months.
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