Digital Disruption

Technologies shaping the media and entertainment industryThe media and entertainment industry has experienced significant transformation in recent years due to the rapid advancements in technology. This transformation has impacted content creation and content distribution in the sector. It is embracing transformative technologies such as artificial intelligence (AI), blockchain and cloud computing. These technologies are affecting how people consume media and digital entertainment and are reshaping audience expectations and business models within the industry.

A look at the key digital trends and their adoption in the sector…

AI-driven innovation

AI assists in the creation, editing and distribution of audio and video content to large and targeted audiences. It helps the media and entertainment industry by providing search engine optimisation, metadata tagging, new subtitle generation and robotic journalism. Moreover, according to an industry report, AI in the media and entertainment market has accelerated progress, with the market displaying a projected 17.5 CAGR from 2024-2034 as transformative technologies like generative AI (GenAI) gain traction.

GenAI is revolutionising the media and entertainment industry by delivering personalised and immersive experiences. According to recent reports, 98 per cent of companies rely on data-driven insights to drive consumer experience. Therefore, GenAI optimises content delivery, recommendation algorithms and audience targeting, creating a dynamic and responsive media ecosystem. The industry aims to deliver tailored content experiences, fostering audience satisfaction and loyalty. Meanwhile, GenAI is being leveraged to produce better content, enhance the user experience and build a strong brand presence. By integrating data-driven insights, the industry adapts operational practices for improved user experience.

Companies like Amazon are extensively using GenAI. Amazon Prime Video recently targeted cricket enthusiasts with personalised advertisements featuring Virat Kohli, an Indian cricketer, promoting exclusive cricket-related content available on the platform. This targeted approach not only increased engagement among cricket fans but also drove higher subscription rates for the platform.

Meanwhile, Spotify uses GenAI for its personalised playlist feature, Daylist, which updates itself throughout the day and analyses past listening patterns at specific times, morphing to fit the changing moods and listening habits of the listener.

ML

Machine learning (ML) has helped the media and entertainment industry by transforming various aspects of film production and content creation. In filmmaking, ML algorithms expedite scriptwriting, generating new scripts and streamlining their evaluation. During pre-production, ML enhances efficiency by automating tasks, predicting durations, suggesting filming locations and organising logistics. Further, it excels in creating compelling trailers and streamlining the editing process through facial recognition. Furthermore, it personalises audio and visual content on platforms like music streaming services and over-the-top platforms, enhancing user engagement and expanding the user base. Moreover, ML plays a critical role in content regulation, detecting and filtering objectionable content to meet regulatory standards.

Major studios such as Warner Bros., 20th Century Fox, and Sony Pictures use ML platforms for making accurate box office predictions and revenue forecasting. In addition, companies are using ML platforms like Google AdSense and AdWords to target audiences based on browsing history, maximising campaign effectiveness and conversion rates.

Blockchain and NFTs

The pandemic has highlighted the importance of blockchain, as digitalisation surged and the need for secure, transparent transactions grew. Blockchain facilitates the creation of new business models, streamlines royalty payments, supports micropayments, provides immutable advertising metrics and combats fraud and piracy. Its decentralised nature improves licensing, rights management and digital advertising transparency, while smart contracts automate payments and reduce transaction costs.

In addition, blockchain empowers copyright owners by reducing the need for intermediaries like platform providers and royalty collection associations, thus decentralising payment collection and revenue distribution. It enhances asset security by verifying identities and controlling content sharing, while also enabling innovative revenue streams like non-fungible tokens (NFTs) and pay-as-you-go streaming models.

Start-ups in the market are providing blockchain-based platforms. For example, Livepeer, a platform that offers a decentralised alternative to content aggregators and centralised platforms, allows creators to deliver video transcoding and streaming services at a fraction of current costs, ensuring quality and control. Livepeer eliminates the need for costly intermediaries, allowing creators and consumers to interact directly, making it a significant disruptor in the media and entertainment sector.

Moreover, the media and entertainment industry is significantly impacted by the commodification of content and pervasive piracy of intellectual property (IP). Blockchain technology offers a solution by decreasing IP infringement, providing transparency in content ownership and enabling monetisation through smart contracts.

Further, NFTs are unique digital assets with diverse applications and are increasingly seen as valuable assets across various industries, providing new revenue streams and cost-saving mechanisms. In the entertainment industry, NFTs can tokenise songs and albums, sell limited digital merchandise and offer physical benefits to engage fans. Meanwhile, NFT-based play-to-earn games are growing rapidly. The entertainment industry is leveraging this technology to engage fans and create new revenue models, with companies like Warner Bros. and Time magazine using NFTs as digital collectables and memorabilia.

XR

The integration of extended reality (XR), including virtual reality (VR), augmented reality (AR) and mixed reality (MR) has significantly transformed the media and entertainment industry by reshaping storytelling, content creation, distribution and audience engagement. XR technologies are driving immersive gaming experiences and live performance enhancements in the entertainment industry. Moreover, XR’s impact on music is significant, with AR-enhanced album covers and virtual concerts providing interactive previews, global fan engagement, and personalised experiences. Meanwhile, VR, supported by AI, is being used to develop AI-generated digital human characters and customise video clips. In addition, GenAI models construct coherent 3D environments from text, transforming game and VR engine design.

VR companies have recently specialised in transforming live sports events. BT Sport broadcasted the Union of European Football Associations’ (UEFA) Champions League final in 360-degree VR via YouTube and the BT VR app. NBC also announced that it would livestream the opening and closing ceremonies of the Paris Olympics in VR, as well as provide highlights for some of the events in VR. Furthermore, The New York Times (NT) has already entered this space. In the NYT VR app, one can experience stories rather than just listen to them.

Cloud computing

Cloud computing offers significant benefits for the media and entertainment industry, such as scalability and flexibility, enabling companies to manage fluctuating demands efficiently, optimise costs and facilitate enhanced collaboration and workflow. Cloud solutions also revolutionise content creation and editing by providing high performance computing resources for tasks such as rendering and animation. Cloud storage offers unlimited capacity and robust security for storing vast amounts of data, including raw footage and metadata. Cloud-based content delivery networks ensure high quality, low-latency video delivery, even during peak demand. Media editing typically involves processing video and audio to create various versions of media content.

For instance, Netflix consumes a large amount of data which is processed through a cloud media player and a cloud-based media server. These services include streaming, transcoding and video processing. Other video streaming sites using cloud are Hulu and YouTube. Moreover, music service providers like Apple Music and Spotify allow the consumer to listen any time and enjoy a large library of high quality songs. Some cloud-based music streaming services also provide cloud storage for audio files which can record or upload recordings remotely.

Challenges and the way forward

The media and entertainment industry has experienced significant transformations due to digitalisation and increased internet usage. Despite the numerous benefits, the widespread integration of these technologies comes with challenges and ethical considerations. Issues related to privacy, bias in algorithms, and the responsible use of technologies in content creation and marketing demand careful consideration. Meanwhile, risks like rising cybersecurity threats persist.

Currently, the industry is at a pivotal juncture, driven by evolving technological trends and consumer behaviour changes. Major media houses are gearing up to navigate these changes, focusing on creating more engaging, relevant and personalised content for their audiences.

The industry is also witnessing a growing demand for audiobooks and eBooks, indicating a shift towards more accessible and diverse formats of content delivery. The future holds exciting possibilities, with ongoing trends such as AI-generated content and advancements in VR shaping the industry’s landscape.