by Cate Storm
The video game industry is now bigger than sports and movies combined
In a report published in late 2020, MarketWatch reported that the video game industry has grown to be bigger than the sports and movie industry combined.
The news outlet reported that global video game revenue is expected to increase 20% in 2020, making $179.7 billion, according to data from IDC.
The biggest gain is expected to come from mobile gaming, according to the news outlet, which is expected to surge 24% to $87.7 billion. Part of this is due to China recently lifting a ban on gaming consoles.
Game console revenue is expected to soar to $52.5 billion this year, while PC and Mac games are expected to make $39.5 billion.
Why aren’t people going to the movies anymore?
Two trends have developed over the past few years that are shaping the movie industry: more people are staying at home to enjoy movies and other entertainment, and more studios and media distributors are developing their own direct-to-consumer streaming services.
This is causing the studios a major headache.
Studios derive almost half of their revenues from theatrical releases. Although the average number of movie tickets purchased by Americans each year has declined from 4.2 in 2009 to 3.4 in 2019 (Source: Deloitte), studio revenues are driven more by box office tickets now than they were 20 years ago.
Streaming is having the biggest impact on people going to the movies. As televisions have improved, where you can now watch movies at home in 4K high-definition on screens with sizes up to 100”, with surround sound, people have become more willing to wait for the latest release movies to become available on streaming services including Netflix, Amazon Prime, Disney+, and Stan.
How the gaming industry is impacting movies
Movies were once seen as one of the only sources of entertainment. Long before computers and video games, people were going to the movies.
Today, that’s simply not the case.
Instead of thinking of movies as a standalone industry, we have to look at the wider entertainment industry to truly understand why fewer people are going to the movie theatre today.
No longer is the cinema our only option when it comes to entertainment. People have choices and perhaps the biggest influencing factor is that people have choices on a device they carry with them at all times: their mobile phone.
Mobile phone technology is the biggest disruptor within the entertainment industry. Advancements in mobile phone technology have put entertainment options at the fingertips of anyone with a smartphone.
From streaming live sport to watching your favourite show on Foxtel, your phone is a gateway to a world of entertainment and this includes the gaming industry.
How the online video games industry is evolving
Technological advancements are what keeps the online video game industry evolving and over the past few years, there has been a rapid growth in investment in the sector. From gesture control to augmented reality, the gaming industry has really embraced technology in an effort to attract more and more players.
As we’ve already touched upon, perhaps the biggest shift has been the advancements in mobile technology, allowing gamers to play anywhere at any time. Many video games designed specifically for mobile are also introduced for casual gamers, who only have a few minutes to spare. According to European Business Review, “Most times, we’re busy with everyday chores or work, but then there are times when we’re waiting for a taxi or standing in a metro line and have nothing to do. This is when we can be entertained by online gaming apps using our smartphone.”
The entertainment factor
It’s not just video games that are competing for people’s attention. Another industry embracing technology is the online casino and betting sector. Here, we have seen huge advancements in the way people are able to game online. One company leading the way in the sector is Betway, “Developed by our exceptionally talented people, Betway creates market-leading, cutting-edge interactive gaming experiences. We bring people closer to the action – putting them at the centre, making them feel a part of it.”
From the introduction of in-game betting to the development of new and exciting interactive games, these online gaming sites are leading the way when it comes to embracing new technologies that can lead to better experiences for customers.
The movie industry is at a real crossroads. With competition coming from every direction within the entertainment industry, studios and distributors need to find a way to either a) get more people back into movie theatres or b) look at alternative ways to ensure that movies can compete with online gaming, live sports streaming and online casinos for a share of customer eyeballs.
Can movie theatres and streaming services live side-by-side?
We may still see a model where movie theatres can survive alongside streaming services and other entertainment platforms. True blockbuster movies, such as the highly anticipated James Bond movie, No Time to Die, or Australian-directed sequel, The Hitman’s Wife’s Bodyguard or movie theatre-only A Quite Place Part II are all hoping to drive large numbers of people to movie theatres around the world and only time will tell whether there is a place for traditional movie theatres to sit alongside streaming services.
We for one hope that it proves to be the case.
