The global entertainment industry is growing at a rapid rate and is one of the largest influencers of the global economy today. By 2025, the global entertainment industry is expected to generate US$2.6 trillion in revenues.
There are many sectors of the entertainment industry expected to see rapid growth over the next 5 years, primarily due to emerging trends that are expected to positively impact the industry in the future. One of the largest emerging trends in the entertainment industry is the adoption of VR and robotics in recreation. The adoption of robots by arcades, fitness centers, golf clubs, and other recreational facilities helps facilitate easy maintenance and smooth operations. Robots are used by these centers for multiple purposes, ranging from entertainment, training, facility management, and other operational work.
Despite the potential for the future growth of various sectors, there are plenty of challenges ahead for the entertainment industry. One such challenge is dealing with environmental impact, as outdoor recreational centers such as golf courses and skiing resorts put a significant strain on the environment. There are strict environment-related regulations in place which they have to adhere to.
Before we dive into the future trends and challenges of the entertainment sector, it is important to define the industry. BizVibe’s platform contains more than 150,000 entertainment companies which are segmented into 9 categories. Each category is being transformed by its own set of trends and challenges that will greatly influence the direction of the entertainment companies in the coming years. Below we will discuss the trends and challenges influencing some of the major categories in the entertainment sector.
Emerging Trend – Digitization of Ticketing Process
The ticket sales for performing arts events are increasingly becoming digitized. Leveraging the reach of digital platforms provides the advantage of reaching out to a greater number of people for promotions and sales.
Major Challenge – Rise in Labor Costs and Labor Shortage
Organizing large-scale events is a labor-intensive task, often performed with the help of vendors and temporary hires. Labor costs are seeing a surge across the globe as a result of regulatory and competitive forces. Also, the sector is facing multiple issues due to labor shortages. Rising labor costs and labor shortages are a challenge on the budget and financials for industry players.
Emerging Trend – Growing Popularity of Virtual Performances
The increasing popularity of virtual performances across multiple genres has resulted in a significant rise in demand for such shows. This has given an alternate channel for revenue, especially in times of social distancing and traveling restrictions.
Major Challenge – Impact of COVID-19
COVID-19 has created several challenges for artists and talents. As the entertainment and sports industries have had to slow or stop operations during parts of the pandemic, opportunities such as endorsement deals in big-ticket sporting events and movie/TV production deals have reduced significantly. As a result, agents working on a commission basis have seen their commission revenues go down.
Emerging Trend – New Operating Protocols
As museums gradually reopen after coronavirus lockdowns, they are incorporating new measures and protocols to ensure the safety of their guests. Visitors are expected to follow guidelines around temperature checks, face masks, social distancing, and hygiene. Museums are also creating processes to ensure limited gatherings at any given point in time and using technology to ensure distancing.
Major Challenge – Increase in Operating Costs With Limited Operational Hours
Organizations are facing increased health and safety costs during the pandemic. PPE and hand sanitizer for employees are a significant expense. Facility deep cleaning episodes have increased and become more rigorous. Also, limited operational hours significantly reduce the profit earned. This is leading to an increase in operating costs and creating additional financial pressure.
BizVibe’s platform contains more than 150,000 entertainment company profiles which are free to view. Each profile consists of in-depth company insights, comprising 50+ data points, including full industry trend and challenge analysis for 9 entertainment categories.
BizVibe company insights help provide answers to questions such as:
✓ How will industry challenges impact specific geographic regions?
✓ Which regions will emerging trends be the most prominent?
✓ What are a company’s major product and service offerings?
✓ Who are the company’s key executives and what are their roles?
✓ How is a company positioned financially?
✓ Who are the company’s major competitors?
✓ What is the risk level of doing business with a given company?
✓ What is the latest company news?
Additionally, BizVibe enables users to connect with entertainment companies and includes a feature that allows companies to send and respond to RFI/RFPs directly on the platform. There are entertainment profiles of companies from over 200 countries on BizVibe. Accessing these profiles to discover, analyze, and connect with entertainment companies is free to use.