Spending on entertainment and media reached a startling high last year. Global events may have contributed, as people chose to stay at home instead of venturing out. Combined with a glut of brand-new entertainment options, the public parted with their hard-earned money in droves.
By the end of the year, spending on entertainment had reached $65.3 billion. It is expected this will continue to grow at a rate of around 4.1% per year up to 2026. On average, each household will spend around $510 a year on entertainment products during this period.
What Did People Spend On?
Delving into the actual spending, it is easy to see that streaming subscription services and gaming have been high on the list of purchases for most households. Not only have they tempted people away from traditional spending avenues such as dining out and fashion, but these sectors have done it by providing a range of new offerings.
In the gaming sector, companies such as PlayStation are overhauling their online services. They have added tiers to their subscriptions, which includes access to a gaming back catalogue, similar to Xbox Gamepass. Just like watching old movies on Netflix, you can now go back to playing retro games.
Another area that has seen exponential growth is iGaming. Concentrating on the provision of online casino experiences, iGaming companies are also recording record profits. Global brands operating in the country such as Bet365 in Australia, provide services online and with an app, giving access to the lucrative mobile betting market. A wide range of markets across different sports, as well as features such as live streaming and Bet Builder, have led to this company being seen as one of the best in the business for Australian consumers and elsewhere across the world.
Of course, much of this spending is also down to the streaming television giants. Oddly enough, in this climate, Netflix is losing customers. This can be attributed to a competitive market, with the arrival of a major competitor in Disney +. They have major franchises such as Star Wars to The Muppets, along with their famous back catalogue. Add to this the host of smaller, more niche streaming sites and Australian citizens are spoilt for choice.
Where Will the Industry Go From Here?
It is not only the entertainment sector itself that has benefited from this. Buoyed by consumer confidence, the related online advertising sector also exploded, reaching a yearly revenue of $19.7 billion. Further growth of over 8% a year is expected up to 2025. Radio and music streaming advertising were also up on the previous year’s totals.
So, where is the industry headed? Big names such as Netflix are already starting to converge their media channels, moving into streaming gaming, as well as providing television and movie services. Live entertainment channels blending social media with traditional television content are also on the rise. This has already been used in iGaming sectors with live casinos. However, it is morphing into social media as an update to the old-fashioned shopping channel.
The industry is unlikely to show any sign of slowing down and it seems like more choice is on the horizon for consumers.