Player gaming
After gambling, reading, and television, the global video gaming business has exploded beyond Hollywood to rank as the fourth largest in the world for entertainment.
According to a recent analysis by the games industry research organization NewZoo, the worldwide video game business was valued at $91.5 billion in 2015 and is expected to reach $107 billion by 2017.
The data indicates a close race between the US and Chinese gaming markets, with the US industry barely losing out at $22 billion against China’s $22.2 billion.
The combined market value of Europe and Africa is $20.5 billion.
With $33.7 billion of the global industry, PC gaming continues to dominate the ever-present “platform wars.” Notably, “casual” online gaming is worth over $6.6 billion.
The new virtual reality (VR) gaming segment, along with TV and console gaming, is predicted to account for $25.1 billion of the worldwide gaming market. Smartphone gaming is likely to come in second, with an estimated $20.6 billion.
With an estimated $12.1 billion in sales, hand-held gaming (tablets and portable consoles) is the smallest segment of the gaming industry.
worldwide market for video games
worldwide video game market in 2015
VR is predicted to provide $225 million to the worldwide gaming business, while e-sports and game video content together contribute $2.1 billion, according to data compiled by SuperData, another research organization.
The growth of video gaming is underscored by a noteworthy downturn in other entertainment domains, particularly the performance of Hollywood and other film companies.
Movies
cinema market
Based on data from market research firm IBISWorld, the global movie production and distribution sector was valued at $126.8 billion in 2012. This dropped to $90 billion by 2014, and the industry is expected to experience even more reduction to $89 billion in 2015.
IBISWorld claims that while there are numerous reasons for the ongoing fall, low levels of disposable income in large markets and the accessibility of internet material are two of the main ones.
“The industry is facing challenges from the widespread availability of free movies on the internet, but newly industrialized nations like Brazil, Russia, India, and China are rising quickly and are expected to support industry revenue expansion,” the association stated.
On-the-Go Music
A decline in music
In a similar vein, other entertainment industries have also contracted, such as music distribution and production, which is expected to bring in only $15 billion in 2015 as opposed to $28 billion the previous year.
According to IBISWorld, the decline is the result of big businesses’ persistent inability “to leverage a crop of potential new revenue streams to compensate for the extreme drop in physical album sales over the past five years.”
Regretfully, industry revenue is anticipated to continue declining over the next five years, and the success of music organizations during this time will depend on their capacity to adopt new technologies.
HDTV
TV contracts
PwC’s entertainment sector tracker indicates that TV subscriptions and licensing will continue to rise, with a projected value of about $300 billion by 2018. The sector is expected to grow to a value of over $250 billion globally in 2015.
2018 will have a CAGR of 3.5% for global subscription TV revenues alone (not including licensing), reaching US$236 billion.
As a result of the steps it has taken to mitigate the effects of OTT and other disruptive forces, PwC claimed that “this growth demonstrates that subscription TV is in a healthy position.”
Poker
Online gambling and casinos
In a similar vein, the worldwide casino and internet gambling market is likewise seen to be expanding, having nearly doubled its earnings since 2014, when it was estimated to be worth $140 billion.
Its entire worth is estimated by IBISWorld to be $285 billion in 2015.
“As more casinos open in China and other Asian nations, the trend of strong expansion will continue. New markets will emerge and provide greater access to gaming activities, whereas established markets have achieved maturity and have less potential for revenue development, according to the group.
books
Books as well as online publication
The publishing market has seen a modest reduction in value during 2014, going from $108 billion to $103 billion, but there is still a significant amount of space for growth because of the expansion of digital technologies and publication.
The publishing industry has been plagued by uncertainty, according to IBISworld, but a shift to digital technology, such e-books, has produced a rapidly expanding section.
The statement read, “E-books are challenging to price, which has posed an interesting challenge for the industry.”
“In the next years, the industry will grow thanks to rising literacy and disposable income, as well as increased Internet use that will help with book sales and e-book convenience that will grow the book market overall.”