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2020

Online Entertainment Market

Online Entertainment Market Size, Share, Competitive Landscape and Trend Analysis Report by Form, Revenue Model, Devices : Global Opportunity Analysis and Industry Forecast 2021-2027

CG : Consumer and general services

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Author's: Anil Kamble | Roshan Deshmukh
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The online entertainment market size was valued at $183.1 billion in 2019, and is estimated to reach $652.5 billion by 2027, registering a CAGR of 20.82% from 2021 to 2027.         

Presently, maximum entertainment services are available online, which provides users with access to more content. The most popular forms of online entertainment are social media, online video games, online casinos, music streaming, and video streaming. Rise in penetration of smartphones and availability of internet service at affordable price are expected to drive global online entertainment market growth. Rapid adoption internet-enabled smart devices, including smartphones, smart TVs, laptops, desktops, and smart projectors significantly boost the demand for online entertainment content. Entertainment over the internet gained significant traction, owing to its benefits such as convenience, low cost, and choice of timings.    

Advancement in the smartphone technology and increase in utility of smartphones are expected to create huge demand for smartphones. Increase in size of smartphones and touchscreen displays has enhanced the visual and listening experience of viewers. Thus, surge in use of smartphone is expected to fuel the growth of the online entertainment market during the forecast period.      

Online-Entertainment-Market-2021-2027

The online entertainment market segments, the report segments the product market into form, revenue model, device, and region. On the basis of form, the market is categorized into video, audio, games, internet radio, and others. By revenue model, it is segregated into subscription, advertisement, sponsorship, and others. According to device, it is divided into smartphones, smart TVs, projectors & monitors, laptop, desktops & tablets and others. Region wise, the market is analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, the UK, France, Russia, Italy, Spain, and rest of Europe), Asia-Pacific (China, India, Japan, Australia, South Korea, and rest of Asia-Pacific), and LAMEA (the Middle East, Latin America, and Africa).  

Online Entertainment Market
By Form
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Video segment helds the major share of 43.3% in 2019

According to online entertainment market analysis, on the basis of form, the video segment accounted for the around one-third half of the online entertainment market share in 2019, and is expected to hold its share during the forecast period. This is majorly attributed to increase in use of digital media for advertisements and promotions of products and services. Digital advertisement has gained significant traction among businesses, owing to various benefits associated such as real time trackability, instant gratification, targeted, segmented audience, and cost-effectiveness. Thus, increase in advertising on the digital media majorly contributes to the growth of the online entertainment market.   

Online Entertainment Market
By Revenue Model
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Advertisement segment helds the major share of 53.5% in 2019

Depending on revenue model, the subscription segment was valued at $46.5 billion in 2019, and is expected to grow to $226.1 billion by 2027, with a CAGR of 25.5%. Subscription revenue model is the method earing money or charging customers a recurring fee on a monthly or yearly basis. Most of the popular online entertainment companies such as Netflix and Spotify have built successful businesses by leveraging the growth potential of subscription. Subscription revenue model is expected to gain major popularity among the online business doting the forecast period, owing to benefits associated with it such as predictable revenue, increase in return on customer acquisition costs, and huge scope for up and cross-selling. 

Online Entertainment Market
By Device
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Smartphones segment helds the major share of 45.2% in 2019

By device, smart TVs, projectors, & monitors are projected to grow at $164.3 billion by 2027, registering a CAGR of 22.3%. Advancement in display technology and increase in capabilities of smart TVs fuel the demand for smart TVs, projectors, & monitors, which, in turn, boost the growth of the online entertainment market size. Some of the advanced features of the smart TVs are fast user interface, streaming video services, universal search, and app store. Universal search feature in smart TVs facilitates users to browse internet. Furthermore, Miracast technology in smart TVs allow users to connect smartphone to smart TVs, which has gained immense popularity, and is expected to surge the demand for online entertainment content.    

Online Entertainment Market
By Region
2027
Europe 
North America
Asia Pacific
LAMEA

North America helds the major share of 40.4% in 2019

Region wise, North America dominated the online entertainment market in 2019, and is expected to sustain its dominance during the forecast period. The key factor driving the growth of the online entertainment market in the region is availability of advanced digital infrastructure, high rate of digital literacy, and quick adoption & favorable response for technological advancements. Furthermore, increase in popularity of online games supports the growth of the online entertainment market. Some of the recent popular video games in the U.S. are Diablo III, NBA 2K20, Call of Duty: Modern Warfare 2019, Borderlands 3, and Super Smash Bros. Ultimate.

The players in the online entertainment market have adopted various developmental strategies to expand their market share, increase profitability, and remain competitive in the market. The key players profiled in this report include Amazon Web Services (AWS), Netflix, Inc., Google LLC, Facebook, Tencent Holdings Ltd, Sony Corp, King Digital Entertainment Ltd, Spotify Technology S.A., Rakuten, Inc., and CBS Corporation.   
 
Key Benefits For Stakeholders

  • The report provides a quantitative analysis of the current online entertainment market trends, estimations, and dynamics of the market size from 2019 to 2027 to identify the prevailing opportunities.  

  • Porter’s five forces analysis highlights the potency of buyers and suppliers to enable stakeholders to make profit-oriented business decisions and strengthen their supplier–buyer network.

  • In-depth analysis and the market size and segmentation assists to determine the prevailing online entertainment market opportunities.  

  • The major countries in each region are mapped according to their revenue contribution to the market.   

  • The market player positioning segment facilitates benchmarking and provides a clear understanding of the present position of the market players in the online entertainment industry.  

Online Entertainment Market Report Highlights

Aspects Details
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By FORM
  • VIDEO
  • AUDIO
  • GAMES
  • INTERNET RADIO
  • OTHERS
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By REVENUE MODEL
  • Subscription
  • Advertisement
  • Sponsorship
  • Others
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By DEVICE
  • Smartphones
  • Smart TVs, projectors, & monitors
  • Laptop, desktops, & tablets
  • Others
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By Region
  • NORTH AMERICA  (US, CANADA, MEXICO)
  • EUROPE  (GERMANY, UK, FRANCE, RUSSIA, ITALY, SPAIN, REST OF EUROPE)
  • ASIA-PACIFIC  (CHINA, INDIA, JAPAN, AUSTRALIA, SOUTH KOREA, REST OF ASIA-PACIFIC)
  • LAMEA  (LATIN AMERICA, MIDDLE EAST, AFRICA)
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Key Market Players

UBISOFT ENTERTAINMENT, RAKUTEN, INC, SONY CORPORATION, SPOTIFY TECHNOLOGY S.A, KING.COM LTD, NETFLIX, INC, TENCENT HOLDINGS LTD, GOOGLE (ALPHABET, INC.), AMAZON PRIME, FACEBOOK, INC

Analyst Review

As per the perspective of top-level CXOs, the global online entertainment market is expected to offer remunerative business opportunities in the developing economies such as India and China. This is attributed to increase in digitalization of the entertainment & media industry, expansion of the internet user base, and surge in disposable.

Increase in penetration of smart devices and decrease in cost of internet boost the demand for online entertainment content such as videos, audios, e-books, and online games over smartphones. Furthermore, surge in popularity of the social media platform is promoting the online video content creators to deign unique products for social media. For instance, recently introduced online music streaming services include Spotify, Amazon Music, Tidal, YouTube Music, and Apple Music. 

The CXOs further added that surge in online gaming popularity and increase in attention for e-books has been increasing, which are expected to significantly contribute toward the growth of the online entertainment market. In the developing countries such as India and China, online fantasy sports gaming (OFSG) has been gaining significant traction among the audience, owing to increase in trend of sports such as cricket, football, and kabaddi. 

Key players in the market have adopted new service launch, continuous innovation, and acquisition as their key developmental strategies to cater to the rising demands for online entertainment. Internet radio is an emerging concept, which has been gaining considerable popularity in the U.S. media and entertainment industry, owing to its unique quality content, fewer advertisements, and suitable content according to the listener’s special interest.                            `

However, the existing challenges such as high digital illiteracy rate and limited accesses to internet & digital infrastructure limit the growth of the online entertainment market.
 

Author Name(s) : Anil Kamble | Roshan Deshmukh
Frequently Asked Questions?

The online entertainment market size was valued at $183.1 billion in 2019, and is estimated to reach $ 652.5 billion by 2027, registering a CAGR of 20.82% from 2021 to 2027.

The forecast period in the report is 2021–2027.

The market value of online entertainment market is $183.1 billion in 2019.

Amazon Web Services (AWS), Netflix, Inc., Google LLC, Facebook, Tencent Holdings Ltd., Sony Corp, King Digital Entertainment Ltd., Spotify Technology S.A. are some of the key industry leaders for the online entertainment market.

Yes.

Increased internet user base and technological advancement in the smart devices including smartphones and smart TVs are key trends in the online entertainment market report.

Online entertainment market in China, India and rest of Asia Pacific was valued at $13,702.0 million, $4,714.2 million and $3,071.4 million in 2019, with registering a CAGR of 20.1%, 28.8% and 30.8% respectively.

Video online entertainment is the leading segment in the online entertainment market.

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Online Entertainment Market

Global Opportunity Analysis and Industry Forecast 2021-2027