In his latest book, The Entertainment Economy, Michael Wolf explores how mega-media forces are transforming our lives. It’s a deep dive into the central role of mass media and entertainment in shaping our future. Wolf is a well-regarded industry strategist and reveals how media and entertainment have evolved beyond culture and are now driving the global economy. Businesses are now following the lead of movie and TV producers in the way they grab the attention of customers through strategic use of content.
Entertainment as a business model
In the USA, the entertainment industry is worth $480 billion, which equates to regarding seven per cent of the economy. That figure is growing annually. Those numbers are enough for leading players in the world of business to take notice. The book tells how entertainment influences our everyday life including our work and education. The success of the entertainment world is a business lesson in positioning a product in the modern marketplace, which is noisier and more competitive than ever before.
High consumer expectations
When a new TV show is launched it is competing in a saturated marketplace but there is huge revenue potential. To make an impact, the product must stand up to the highest production and entertainment standards. The best marketing exercise will be of no use if the final product does not satisfy the entertainment demands of the audience. Originality is also important, as proved by the success of Squid Game on Netflix. Anything considered subpar will be rejected, while products that meet expectations will achieve mainstream success and turn a healthy profit.
The iGaming explosion
The online gaming sector is another driving force in many modern economies. In the UK (where internet gambling has been regulated since 2005) the iGaming sector is predicted to be worth £5.6 billion out of a total gambling revenue of £14 billion, with 47% of British adults engaging in some form of gambling every month. This growth has been achieved through improved choice and quality of games, greater variety of payment methods (many sites even accept cryptocurrency payments), and better accessibility. This means slot and casino games are faster to load and have better graphics, sound effects and features than ever before, making them more user-friendly. Welcome bonuses have also been simplified, and the rise in the number of free spins no wagering sites in UK and in other regions have made online casinos more appealing to new customers. Similar opportunities are emerging in the growing US iGaming sector. But despite the size of the market, only the very best products with the right qualities to engage the modern customer will thrive.
Emphasis on quality
Customers have more entertainment choices than ever before but with less time to enjoy them, so they place more importance and value on their decision-making. People don’t want to watch a bad or average movie anymore, and they don’t have time for an inferior gaming experience. If they are not entertained in the way they expect, they feel they have lost an opportunity. This value is increasing all the time along with expectations.
Tune into social trends
Consumers also expect the media they consume to align with their own beliefs and desires. So, the importance of social trends has also risen. People want to feel part of a cultural wave and the entertainment world must tap into that at every opportunity. This can take the form of social issues such as activism or trends for nostalgia-driven content.
The artists and entertainment producers of the world who can create their best work, while understanding and addressing the fundamental economical driving forces are the ones most likely to succeed in this environment. And that is going to be even more important in the coming years.
