Digital disruption in consumer entertainment: what lies ahead?

Digital disruption in the media and entertainment industry is not new. However, our research shows that the speed of digital transformation is reaching unprecedented levels. Does this mean that we are on the cusp of a new wave of disruption? Very likely. Competition has never been greater with OTT video content providers such as Netflix and digital platform conglomerates – the likes of Google, Amazon, Baidu, Alibaba and Tencent – disrupting traditional powerhouses and business models. M&A reached a new record in the first half of 2018, driven by some mega deals in the US. There is also a generational element in the transformation of media and entertainment with mobile and on-demand streaming at the heart of millennials’ digital entertainment habits.

Operators are very much in the game but there is no single route to success. Owning content, buying premium content, content aggregation and distribution form the spectrum of options. As we move into the 5G era, 5G will play a key role in strengthening the intersection between mobile and video, providing an even more integrated and enhanced customer experience. 5G will also support technology developments in some of the future entertainment use cases such as in-venue digital entertainment, eSports and immersive reality.

This report looks at the current and future evolution of the consumer digital entertainment ecosystem from a number of perspectives: competitive landscape, technology, innovation, usage patterns and key implications for companies, including operators. It shows our mobile entertainment engagement score for 50 countries around the world – based on the GSMA Intelligence Consumer Survey – as well as a number of key drivers and insights around consumer behaviour.