Hollywood’s Entertainment Companies Will Take on Google and Facebook in 2021

A new report from the Entertainment Technology Industry Association (ETIA) finds that the entertainment industry is facing a “new paradigm” in 2021, as the rise of Google and social media threatens the industry’s ability to compete with the likes of Netflix and Amazon.

The report, titled “Entertainment Companies Will Replace Google and Social Media in 2021,” outlines the industries plans to compete in a digital landscape where competition is increasingly driven by content.

It found that the industry is “moving forward with a new paradigm” as it transitions from a legacy, vertically integrated media to a “multi-platform, mobile-first” economy.

ETIA CEO Mark Cerny said that the future is bright for the entertainment sector, which is expected to add $2.3 billion in 2021 compared to the previous year.

“The entertainment industry has grown significantly in the past 20 years, but the transition is not complete,” Cernys report said.

“There are significant challenges in achieving the success that the content industry is looking for, but our industry is in a unique position to address those challenges, particularly in the fast-paced digital environment.”

While the entertainment companies are moving forward with “a new paradigm,” they are facing challenges in maintaining a balance between competing on multiple platforms.

“As the Internet of Things becomes more and more ubiquitous, we are seeing a shift from a single-platform-focused entertainment business to multi-platform,” the report said, “where all of the platforms are competing in a new world.”

“We believe that a major part of this is the continued need for content creators to maintain a level of creative autonomy and control over content they create.”

Cernys analysis comes just as Netflix, which has been under fire for allegedly slowing its own content delivery, has announced it will soon introduce a new service that allows content creators and distributors to access their content from a variety of locations.

Netflix CEO Reed Hastings said in a recent earnings call that the company is “actively working to build a multi-stream platform for the content that’s important to the entertainment ecosystem.”

The ETIA’s report also notes that the major studios have been losing money for years and will continue to do so.

“There are a number of entertainment-industry players that are struggling financially, and the number one issue is that the companies themselves are losing money,” Cermak said.


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