Significance of Digitalization in the Entertainment Industry Now and the Future

Digitalization of Entertainment

Digitalization of Entertainment

How can tapping into the potential of digital revolutionize the entertainment landscape?

Digitalization is already transforming the world and all walks of life we live in. Businesses turn to digital transformation to break the fences of conventional systems and boost the legacy business operations. This has disrupted almost every industry and the entertainment industry is not an exception. With the development of digital technology and especially the rise of smartphones, the media landscape is witnessing a significant transformation and shifting to digital, reshaping the models of the television, music, publishing and film industries.

Over the past few years, rapid technological innovations have revolutionized entertainment distribution at a larger scale. The digitalization of the industry has changed the way people watch analog films. For instance, the innovation of 3D, 4D and 5D films is bringing an immersive entertainment experience to audiences. Owing to digitalization, gaming has also become so advanced that they could begin replacing traditional handheld gaming consoles. Even, in some cases, the advent of online casinos is taking place quickly, minimizing the numbers of brick and mortar casino goers.

The changing ecosystem of globalization, urbanization and aging populations are pushing this transition towards digital technology. And the increasing reliance on this is transforming societies and the economic structures that have formed the basis of industries since the industrial revolution.

Today, the convergence of digital media is making the process of entertainment distribution is much easier. As the media and entertainment companies now realize the value of going digital, they are working hand in hand with digital consulting firms to capitalize on the potentials the internet offers.

Heightened Customer Expectations

As digital media has a vast impact on people’s everyday lives, increasing customer expectation is inevitable. Today, customers look for more personalized services that leave media and entertainment companies to focus their strategies on personalization. Consumers these days have so many choices like where, when, and how to consume content, forcing businesses to put customers first in place in their strategies and create an exceptional experience tailored to their preferences. Companies that take a closer look at their customer demographics and their preferences such as what they are reading, watching, or interacting with will have significant value and the upper hand against their peers.

Considering reports, a majority of Millennials and Gen Z consumers are very keen to pay for personalization as they seek deeper engagement that digital transformation provides.

Furthermore, customers nowadays have a wide array of content resources ranging from cable to streaming services and mobile devices to websites. However, these touch-points generate a voluminous amount of data that require to be gleaned, processed and acted upon. This is where media and entertainment companies need to prove themselves by integrating all of the information that can help them to form the large-segmented audiences and lay the foundation of tailored customer experience.