Entertainment Industry Operating Environment
The entertainment sector’s success is a result of optional spending by consumers, making economic stability vital for profitability. In 2015, the entertainment industry dynamics were continuing to shift from publishing in print media and TV broadcasting to new business models involving online video content. However, in the future, the Internet is gradually becoming the central means of content delivery.
Disney, Warner Bros, 20th Century Fox, and Paramount Pictures are considered among the top competitors in the entertainment sector, including TV content and music. These companies all compete fiercely for audiences, movies. The industry is also full of startups trying to achieve market share. The market hurdle to entry for major film production is high. Since a huge investment is needed to make a movie. The other relevant companies in the entertainment industry include the music giant Sony Music Entertainment and amusement park company Cedar Fair.
It is vital that the entertainment companies optimize their content delivery systems to achieve the demands of viewers. Making content available on multiple platforms 24/7 is something many producers are pursuing. However, intellectual property and the protection of copyrights are more challenging in the current environment. For entertainment industries to enhance their revenue streams, they must navigate the Internet efficiently and protect their content from piracy.
The entertainment industry also relies on multiple technology/external factors like mobile, wireless, digitization, devices, internet access speeds, consumer analytics, social media, and cloud storage. The entertainment industry has successfully adapted to these developments in recent years. Since the 1990s, digitization has changed the creation of content and delivery of music. Another inclusion in the 2000s, the rise of the Internet, was a big game-changer for all industry verticals. At present, social media has been instrumental in shaping the present media & entertainment industry.