Online Entertainment Market Report

Market Insights

The global online entertainment market is expected to grow from USD 208.64 billion in 2022 to USD 725.36 billion by 2029 at a CAGR of 19.5% during the forecast period.

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What is Online Entertainment?

Online entertainment is the process of accessing various forms of media such as music, movies, and web shows via the internet. The availability of numerous entertainment services online provides users with a wide selection of content to choose from.

Popular sources of online entertainment include video and music streaming, video chat communication, and multi-player gaming. Interactive features and content like social networking services, graph management, forums, geolocation reviews, and ratings are also included.

Online entertainment is widely accessible and mostly free or low-priced, offering users a vast array of easily accessible content. The immense popularity of on-demand content and over-the-top (OTT) platforms has resulted in the significant growth of online entertainment.

Key Players

The major players operating in the global online entertainment market are:

• Netflix
• Amazon Web Services, Inc.
• Facebook
• Google LLC
• Sony Corporation
• Spotify AB
• King
• Rakuten Group, Inc.
• CBS Corporation
• Comcast
• Disney
• ViacomCBS Inc.
• Charter Communications Inc.

Market Dynamics

The online entertainment market is anticipated to experience significant growth during the forecast period, due in part to the rapid advancement of smartphone technology and the increasing utility of smartphones. The growth of larger smartphones with high-quality touchscreens has enhanced the visual and listening experience for users, leading to a surge in demand for these devices.

The proliferation of technological advancements in smartphones is a key factor responsible for the upliftment of the market growth, alongside factors such as increased data tariffs, rising smartphone penetration, higher disposable incomes, expanding consumer bases, and improvements in mobile technology.

Additionally, the growth of the online entertainment market can be attributed to the increasing number of smartphone users and rising number of application downloads. In addition, the growing trend of digital transformation in the media and entertainment industry, coupled with increased spending on digital advertising, is expected to create further opportunities for the online entertainment market during the forecast period. However, the market may face challenges and constraints such as limited digital infrastructure and digital illiteracy, which could impede its growth during the same period.

Currently, there is a wide variety of online entertainment services available, which offer users access to a plethora of content. The most popular online entertainment options include social media, online video games, online casinos, music streaming, and video streaming. The increasing penetration of smartphones and the availability of affordable internet services are expected to be key drivers for the growth of the global online entertainment market.

The widespread adoption of internet-enabled smart devices such as smartphones, smart TVs, laptops, desktops, and smart projectors is also contributing to the increasing demand for online entertainment content. Entertainment over the internet has gained significant popularity due to its various benefits, including convenience, low cost, and the ability to choose when to access the content.

The digitalization of the media and entertainment industry is a major driver of the market, with the popularity of OTT platforms and the increasing number of OTT app downloads also contributing to market growth. Other factors such as the larger size of touchscreen displays, growing investments in digital advertising, the emergence of high-speed 5G internet, increasing disposable income, and the focus on research and development (R&D) by key industry players are all contributing to the positive market outlook.

Market Segment

Form Insights

The video segment held the largest share of the online entertainment market, accounting for approximately one-third to half of the market share in 2022, and is expected to maintain its dominance during the forecast period. This can be attributed to the growing usage of digital media for advertising and promoting products and services.

The adoption of digital advertising by businesses has significantly increased due to the benefits it offers, including real-time traceability, instant gratification, targeted and segmented audience, and cost-effectiveness. Consequently, the rise in advertising on digital media is a significant contributor to the growth of the online entertainment market.

Revenue Model Insights

The online entertainment market analysis suggests that the subscription segment is expected to experience significant growth during the forecast period. The subscription revenue model involves earning money by charging customers a recurring fee, usually on a monthly or yearly basis. Many popular online entertainment companies, including Netflix and Spotify, have successfully built their businesses using the subscription revenue model.

This revenue model is expected to become increasingly popular among online businesses in the forecast period due to its associated benefits such as predictable revenue, increased return on customer acquisition costs, and opportunities for up-selling and cross-selling.

Device Insights

The segment of smart TVs, projectors, and monitors is expected to witness significant growth by 2029. This can be attributed to the advancements in display technology and the increased capabilities of smart TVs, which have led to a surge in demand for these devices. As a result, the online entertainment market is also expected to grow.

Smart TVs offer several advanced features, such as fast user interfaces, streaming video services, universal search, and app stores. The universal search feature allows users to browse the internet directly from their TVs, while Miracast technology enables users to connect their smartphones to their smart TVs, which has gained immense popularity and is expected to further drive the demand for online entertainment content.

Geographic Analysis

In 2022, North America was the dominant region in the online entertainment market, and it is expected to continue its leading position during the forecast period. This growth can be attributed to several factors, such as the availability of advanced digital infrastructure, a high rate of digital literacy, and a quick adoption rate for technological advancements.

Additionally, the rising popularity of online games in the region is also supporting the growth of the online entertainment market. Some of the recent popular video games in the United States include Diablo III, NBA 2K20, Call of Duty: Modern Warfare 2019, Borderlands 3, and Super Smash Bros. Ultimate.

Research Methodology

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.

More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.

We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision making for the existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market Environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Product Portfolio, New Product Launches, etc.
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors.

Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: product portfolio, geographical reach, regional presence, and strategic alliances

Custom Research: Stratview research offers custom research services across the sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@Stratviewresearch.com

Recent Developments

• In September 2022, Prasar Bharati News Services selected AWS to scale its digital news services.
• In July 2022, Netflix acquired the Australian animation studio, Animal Logic. This acquisition supports Netflix’s ambitious animated film slate, building on films such as Academy Award-nominated Over the Moon, Academy Award-nominated Klaus and the recently released The Sea Beast.
• In April 2022, Rakuten Group, Inc. today collaborated with Globalgate Entertainment, US-based company, to develop content featuring global IPs (intellectual property rights) for release both in Japan and overseas.
• In April 2022, Charter Communications, Inc. and Comcast Corporation formed a 50/50 joint venture to create and offer a next-generation streaming platform on a range of branded 4K streaming devices and smart TVs, giving consumers with a world-class user experience and navigation, all the top apps, and more choice in the streaming entertainment marketplace.
• In March 2022, Sony Pictures Television (“SPT”), a division of Sony Pictures Entertainment (“SPE”), acquired Industrial Media, one of the foremost independent nonfiction production companies.