Media & Entertainment IT & AI Consulting

The entertainment and media industry is being reshaped by the dual forces of shifting consumer behavior towards digital platforms and the advent of powerful AI/content-creation tools. One major trend is the continued explosive growth of social video and user-generated content. U.S. consumers now spend nearly an hour per day watching videos on social media, a figure almost double that of 2019. TikTok has been a key driver, with over 1.5 billion monthly active users globally, it’s popularized short-form videos and even spurred an ecosystem of TikTok influencers turning content creation into full-time businesses.

In response, traditionally non-video platforms (like Instagram with Reels and even X) have pivoted to prioritize video content to capture audience attention. Alongside this, streaming services (“streaming wars”) have started to mature and consolidate. Streaming now accounts for over one-third of all TV viewing, surpassing broadcast and cable. While giants like Netflix, Amazon Prime, and Disney+ remain dominant (Netflix alone draws about 1.3 billion visits per month), many new entrants launched in recent years have struggled to gain traction or turned out to be unsustainable. The failure of experiments like Quibi’s short-form service and the modest scale of others (Apple TV+, Peacock, etc.) have led to a settling where consumers gravitate to a few core platforms. This is prompting industry consolidation and partnerships as smaller services either bundle with larger ones or get acquired, aiming to give viewers simpler choices and reduce subscription fatigue.

Perhaps the most groundbreaking development, however, is the rise of generative AI in media production. AI is increasingly used behind the scenes in content creation: for example, studios and creators use AI tools to help generate scripts, storyboard scenes, create special effects, and even compose music. Text-generating AI can assist writers in brainstorming or drafting story ideas, and image-generation AI can rapidly produce concept art or storyboards, speeding up pre-production work. OpenAI recently demoed generative video capabilities (“Sora”) that sparked industry buzz about the future of AI-created video content. This has raised debates across Hollywood and media – some fear AI could displace certain jobs (writers, illustrators, even voice actors if AI can mimic voices), while others argue it will be a collaborative tool that increases overall content output. (Notably, in 2023 the Writers Guild strike highlighted concerns about uncontrolled use of AI in scriptwriting).

Another area of AI impact is in media analytics and personalization: streaming platforms use AI algorithms to personalize recommendations, and even to decide which shows to greenlight based on predictive analytics of viewer preferences. Additionally, gaming is becoming mainstream entertainment – cloud gaming is on the rise (search interest up 10x in five years), and new forms of sports entertainment like eSports and other niche sports are growing their audiences, partly through streaming platforms.

Direct fan-to-creator interaction is also a trend: via platforms like Patreon or Twitch, fans financially support creators directly, enabling independent content creation. In summary, entertainment media is in a phase of digital-centric growth: social and streaming platforms dominate distribution, while AI is beginning to revolutionize content creation and curation. The industry is adapting through consolidation of services and careful integration of AI to enhance production capabilities, all while keeping an eye on how to maintain human creativity and originality in this AI-augmented era.