For the Entertainment industry, which has always been a pioneer in embracing change and pushing the boundaries of innovation, 2023 was no different. This past year brought many pivotal events and significant developments that will continue into 2024, such as the lasting impacts of the strikes and the continued disruption from Big Tech.
The World Will Keep Getting Smaller in 2024
Further consolidation in the industry will happen because there is no other choice for the studios. Traditional media companies will continue to polish their balance sheets with the hope that a big tech company will acquire them and will overpay.
Big Tech Will Continue to Flex in Hollywood
Big Tech has shown that it enjoys the halo effect of being in the entertainment industry. It will continue to find the platforms that will influence current customers and grow further engagement. From the dollar/budget perspective, making movies and TV shows is merely a line item for advertising/marketing. Apple and Amazon will continue to get the blockbuster and award-winning scripts with A+ talent.
Ready, Set, Go
The old adage “content is king” still holds true. What platform(s) will become the essential conduit for viewership? That is the race to watch for 2024 and beyond. As of right now, YouTube is still the biggest streaming platform in the world—a tremendously underreported fact. YouTube’s market share grew this year and will feel the least amount of impact from the strikes. The race will not finish in 2024, but expect YouTube and TikTok to continue to increase their viewership because of the strong engagement with younger audiences.
FAST Will Get FASTer
Free ad-supported streaming television (FAST) is a linear distribution model that offers viewers free content in exchange for watching ads. This platform will continue to flourish in 2024. Pluto has reported it has 1% of all viewership, but that number seems conservative. In 2024, there will be a land grab for content owners, especially for those who control voluminous libraries. Look for all these platforms to increase viewership and grow audience engagement this year.
Creator Economy Trends to Watch in 2024
The creator economy is the only place in the industry to have 1) complete control of your creative passion, 2) direct connection to your audience, and 3) ownership of the IP, format and data.
Creators will start to migrate toward business models that provide autonomy over production and distribution. Top-performing influencers will continue to build teams and infrastructure to scale their brand and establish viable businesses across multiple verticals. Disruption by professional athletes in the creator economy will continue to grow. High-profile talent will continue to de-risk and expand to multiple platforms to monetize.
Micro-nano influencers are becoming the middle class in the creator economy. You will see big companies and established brands partnering with up-and-coming influencers in a variety of industries such as health care, wellness, hospitality, travel and leisure. Our deal flow forecasts that there is a robust opportunity for lesser-known influencers with strong followings if they can partner with teams and professionals that have scale expertise.
Conclusion
The scope of opportunity in the entertainment industry has never been bigger, and with the possibilities described above, there will be completely new ways for creators and companies to grow their businesses. If the trajectory of 2023 can provide any insight, the industry will—as it always has—find ways to thrive amid transformation.