Malika Kazakova
an expert in entertainment business and large-scale event production
Introduction: An Industry at the Turning Point
The global entertainment industry has historically depended on “live” formats — concerts, theaters, cinema, and television. However, digitalization has changed the very nature of content and its distribution models. Today, users expect instant access to entertainment, personalization, and a hybrid experience that combines offline and online.
According to PwC (2023), the global entertainment and media market was valued at $2.5 trillion and continues to grow, with the digital segment accounting for more than 70% of new revenue.
Streaming Platforms as a New Foundation
The growth of streaming services has become a symbol of digital transformation. Netflix, Disney+, Amazon Prime, HBO Max, Apple TV+, and Asian players such as Tencent Video and iQIYI have changed the rules: users now choose what and when to watch.
Features:
- The economic model has shifted from ticket and DVD sales to subscription.
- Content has become global: South Korean dramas or Spanish series attract millions of viewers in Europe and the United States.
- AI algorithms personalize recommendations, increasing engagement and subscription duration.
According to Statista (2024), by 2030 the global video streaming audience will exceed 2.2 billion users.
Metaverses and Virtual Entertainment
The emergence of metaverses has become a new stage. These are not just games but digital spaces where people interact, work, and entertain themselves.
Examples:
- Travis Scott’s concert in Fortnite attracted 12 million viewers simultaneously.
- The Roblox platform allows brands to launch shows and quests for millions of users.
- Expo 2020 Dubai was partially held in a digital metaverse, expanding its audience.
According to McKinsey (2024), by 2030 the metaverse market will reach $5 trillion, with a significant share coming from entertainment.
Artificial Intelligence in the Industry
AI is applied at all levels:
- Content creation — generation of music, video, and scripts (example: Sony uses AI for musical experiments).
- Localization and dubbing — automatic translation of films into dozens of languages.
- Personalization — TikTok and YouTube build recommendation feeds based on user behavior.
- Analytics — predicting box office performance and evaluating potential hits.
On one hand, this accelerates production and reduces costs; on the other, it raises questions of copyright and ethics.
Social Networks as New Stages
Entertainment platforms have shifted toward user-generated content.
- TikTok has become a global “stage” for dance flash mobs and music releases.
- YouTube has given independent creators the opportunity to compete with television channels.
- Instagram Reels and Snapchat are forming a new format of short videos.
The creator economy market is valued at $100 billion (Influencer Marketing Hub, 2023) and continues to grow.
Regional Differences and Content Globalization
The digitalization of entertainment has regional characteristics:
- Asia — a leader in the integration of games and shows (China, South Korea, Japan).
- USA — the center of streaming services and Hollywood franchises.
- Europe — focus on art-house and festivals adapted to online formats.
- Latin America — growth of series and music formats for the global market.
Thus, local cultural products are becoming global, and global trends are becoming part of local everyday life.
Economic effect
The entertainment industry has a multiplier impact:
- job growth in IT and creative professions;
- stimulation of tourism through hybrid shows and concerts;
- export of cultural products as an instrument of “soft power.”
According to Deloitte (2023), digitalization allows companies to reduce costs by 15–20% and increase revenue by 10–12%.
Challenges
- Intellectual property — growth of piracy and problems related to NFTs.
- Digital inequality — limited access to technology in developing countries.
- Audience fatigue — content oversupply reduces engagement.
- Cyber threats — attacks on streaming services and user accounts.
Figure 1 — Global Entertainment & Media Revenue Share: Digital vs Traditional (2015-2025,%)
- 2015 — Digital 35%, Traditional 65%
- 2018 — Digital 45%, Traditional 55%
- 2020 — Digital 55%, Traditional 45%
- 2022 — Digital 62%, Traditional 38%
- 2025 — Digital 72%, Traditional 28%
Figure 2 — Growth of Global Streaming Users (2010-2025)
- 2010 — 0.2
- 2015 — 0.6
- 2018 — 1.1
- 2020 — 1.5
- 2022 — 1.9
- 2025 — 2.2
Conclusion
The digital transformation of the entertainment industry is not only a technological process but also a global cultural revolution. Streaming platforms, metaverses, social networks, and artificial intelligence are shaping a new model of the experience economy, where value is determined by the uniqueness of experience and the speed of content delivery.
In the coming years, the key factors of success will be the integration of technologies, flexibility of business models, the ESG approach, and the protection of user rights. Those companies and regions that are able to combine innovation and cultural diversity will become leaders in shaping the future of the global entertainment industry.
Sources
- PwC. Global Entertainment & Media Outlook. 2023.
- McKinsey. The Metaverse: Value Creation. 2024.
- Deloitte. Future of Digital Media and Entertainment. 2023.
- Statista. Global Video Streaming Market Forecast. 2024.
- UNESCO. Culture and Digital Transformation. 2022.
