5 Key Trends Shaping The Media and Entertainment Industry in 2023

An Ecosystem of Engagement

The media and entertainment industry is undergoing a significant transformation in 2023 (and we're not even talking about the historic strikes). Streaming video, social media, and gaming have become pillars of this evolving landscape, forming an interconnected ecosystem of engagement.

There is content truly everywhere we turn. From adapting to continuous change to the power of fandom and the influence of Gen Z, the media and entertainment industry is experiencing a dynamic shift that demands attention and innovation. Inspired by a comprehensive study by Deloitte, in this blog post, Hollywood Branded will explore five key trends that are shaping the media and entertainment industry and driving new business models.

Trend 1: Adapting To Continuous Change In The Industry

Change is pretty constant in the media and entertainment business, but recently it's been hard to keep up. In 2023, studios, video streamers, and content creators are grappling with market disruption as they strive to find profitability in an increasingly competitive landscape. Streaming video-on-demand (SVOD) services invest heavily in content to attract subscribers (Netflix has invested $17 billion in content in 2023 alone), while social media platforms embrace user-generated video content to create personalized TV-like experiences.

The challenge lies in supporting content creators while keeping costs manageable. Known as TikTok's Creator Fund, in 2022, the fund promised to give US creators $200 million, and it is expected to grow to $1 billion over the next few years. 

Trend 2: Competition Among SVOD's 

The streaming video revolution, which began 15 years ago, has disrupted the entire entertainment industry. SVOD services have gained significant traction, surpassing cable and broadcast TV viewership in the United States. However, operational costs and intense competition for subscribers pose challenges to profitability.

To address this, providers are finally exploring the dreaded ad-supported tiers, experimenting with content windowing (the practice of releasing content in a specific order and timing, as in releasing a movie in theaters first, followed by a DVD release, and then a streaming release), and raising prices for premium offerings. The year ahead may witness further experimentation with subscription models to strike a balance between affordability and revenue generation. 

Photo Credit: Advanced Television

Trend 3: Social Media Is The New Flat Screen

Social media has transformed global communication and opened new avenues for people to both gain and attain influence and forge relationships. However, the importance of content moderation and the need to reinforce value for advertisers are reshaping social media platforms. They are transitioning from primarily social networks to basically open stages for performers, blurring the lines between social media and traditional TV. Communication and socialization will continue to shape the internet, but social media is becoming a space where performers can showcase their talents, get discovered and engage with audiences on a grand scale.

Singer, song-writer Gayle is a great example of this. She shared an acoustic rendition of her song, "abcdefu" on her TikTok, and it quickly became a hit on the platform, with 2.4 million videos being paired with the song."abcdefu" is currently on its fifth week at No. 1 on the Billboard Global Excl. U.S. chart and was also reigning on the Billboard Global 200 chart. Gayle's success on TikTok highlights the platform's ability to launch new artists and songs to mainstream success, as well as the power of social media in the music industry.

Photo Credit: Gayle

Trend 4: Creators Going DTC

Creators and the content they produce have become central to social media feeds. However, many creators are seeking alternative revenue streams to supplement their income, as they often rely on brand partnerships for a significant portion of their earnings. Independent creators are shifting away from traditional social platforms and embracing direct-to-consumer models.

By taking their content, brand partnerships, and communities to different platforms and services, creators can exercise greater control over their creative endeavors, partnerships, and livelihoods. This model also benefits brands by allowing them to find creators who align with their products and reach niche audiences.

Trend 5: The Influence of Gen Z

The holy grail of advertising right now, Gen Z, those born between 1997 and 2012, is a significant force shaping the media and entertainment landscape. This digitally native cohort, with its preference for social and immersive media experiences, demands attention from media companies and brands. With their increasing purchasing power, diversity, and passion for social issues, advertisers know they're a crucial demographic to connect with. Understanding their preferences and evolving entertainment consumption habits is essential for industry players to capture their attention and loyalty.

This generation has grown up on this media that is quite literally at your fingertips so they are harder to impress compared to older generations and are more likely to tune out common marketing tactics forcing innovation with every campaign. 

Trend 6: Brands and the Power of Fandom

Fans and fan communities play a pivotal role in the success of media and entertainment offerings. These passionate communities can propel content, creators, and experiences to new heights. To leverage this asset, media companies and creators must actively engage with fan communities, seeking feedback and insights to improve their products and strengthen connections. While challenges exist in locating and engaging with fan communities, listening and authentically engaging with loyal fans can lead to improved products, expanded reach, and stronger connections.

Netflix and Amazon participate in these activations often with events like Bridgerton's Queen's Ball and Amazon's mile-long takeover of fifth avenue for the final season premiere of Marvelous Mrs. Maisel. 

Queen's Ball

Photo Credit:Netflix.com

Amazon's Marvelous Mrs. Maisel Event

Photo Credit: AdWeek

Buckle Up - It Has Just Begun

The media and entertainment industry is undergoing a profound transformation in 2023. As streaming video, social media, and gaming become increasingly interconnected, companies need to adapt to continuous change and develop strong visions that span these sectors.

By understanding the evolving landscape and embracing trends such as direct-to-consumer models, engaging with Gen Z, and harnessing the power of fandom and communities, businesses can thrive in this new ecosystem of engagement. The future of media and entertainment lies in innovation, adaptability, and a deep understanding of audience needs and preferences.

Eager To Learn More?

In this fast-paced industry, it is always difficult to stay up to trend but Hollywood Branded is here to help. Here are five additional blogs you might find interesting on the topics of the media and entertainment industry: 

• Dive Into Barbiecore: The Coolest Brand Partnerships for the Barbie Movie
• Pop Culture Marketing 101: How to Stay Relevant In Trends
• Sustainable Shaping the Future of Entertainment Marketing
• Finding the Best Brand Partner
• Entertainment's Experiential Partnerships

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