When you think about entertainment, what do you think about? Movie? Music? Games?
People have different ways of getting themselves entertained. Some prefer to watch movies, some would prefer going to a concert, or playing music via their media players.
To others, they will rather get an app, or console, and enjoy some gaming activities.
These three entertainment channels are getting people occupied, and in return, the companies involved gets the required revenue to keep entertaining people.
Netflix, 20th Century/Fox, Marvel, Disney, HBO, iRoko TV, etc; these companies make their revenue from entertaining people with movies.
On the other hand, Mavin, Square records, Sony Music, etc, get revenue from entertaining people with different types and genres of music.
The companies in the movie and music industry are doing their part to entertain people, and have built multimillion dollar companies.
How big is global entertainment in recent years?
According to Forbes, the Movie industry made $100 billion last year. The report states that box office made $42 billion globally, while home/mobile entertainment made $58.8 billion.
The data shows that 85% of children, and 55% of adults consume contents on screen.
Thanks to tech, digital channels accounts for 14% of the growth experienced by the movie industry in 2019.
The music industry on the other hand made about $21 billion in 2019. This is a $3 billion dollar increase from the revenue in 2018.
Technology, through music streaming, contributed to 56% of the revenue, bringing in a little less than $12 billion.
How much is the Gaming Industry worth?
While the Music and Movie industries are doing pretty well, the Gaming industry is completely overlooked, and underrated, while trumping both the movie and music industries.
In May, games and esports analytics company – Newzoo – published a report where it made a forecast that the 2.7 gamers in the world would spend $159.3 billion on games in 2020.
Newzoo further stated that by 2023, the gaming industry would be generating a revenue worth $200 billion.
In the report, Newzoo predicted that Mobile gaming will generate $77 billion, which is a 13.3% growth from last year.
This revenue will be gotten from 38% of the the 2.6 billion mobile gamers that are expected to pay for mobile games.
The over 700 million Console gamers are expected to push the Console segment of gaming to about 6.8% growth in 2020, resulting in about $45 billion revenue.
PC gaming, which is pushed by 1.3 billion gamers, is expected to have a 4.8% growth in revenue this year, amounting to about $36.9 billion.
Unlike Console, PC gaming have not had an increase in revenue that is significant enough to affect the market.
How will Covid-19 affect Gaming Revenue?
While COVID-19 contributes to the growth in global gaming revenue, it will also affect some aspects of gaming, especially, PC, and Console.
While PC might not be affected as much, due to digitalization, Console will take more of the hit.
“Physical distribution, massive cross-company collaboration, and certification are a major part of console game development, which may result in game delays in the future or games scaling down scope or features to hit release windows,” Newzoo reports.
“Across all three segments (PC, console, and mobile), almost half of consumer spending on games will come from China and the U.S. in 2020. However, growth will be driven by emerging markets in regions like Latin America and Asia-Pacific in the years to come,” Newzoo added.
The future of gaming revenue
The report claims that by 2023, gaming would generate $200 billion revenue, and would keep growing.
Gaming revenue is predicted to reach 8.3% growth rate by 2023, however, the report does not see a double digits growth happening earlier than six years.
Mobile gaming is predicted to have the fastest growth momentum, while Console will get steady growth, due to new generation of consoles.