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Technavio Identifies Top Five Emerging Trends for Global Online Movies Market Through 2020Technavio's latest Global Online Movies Market 2016-2020 report highlights the top five emerging trends that are expected to drive market growth over the next five years. Technavio defines an emerging trend as something that has potential for significant impact on the market and contributes to its growth or decline. Technavio media and entertainment services research analyst Soumya Mutsuddi highlighted the top five emerging trends for the global online movies market through 2020: User-friendly interface User-friendly interface is a significant differentiating factor among vendors in the global online movies market. Service providers are struggling to develop better menu options and recommendation engines to ease confusion among consumers' immense selection options. Easy filter and payment options help individuals to use the website for future requirement, which enhances user control over program selection. As consumers own multiple video screen devices, they demand a unified experience independent of their location. Shift toward digital distribution The increased adoption and use of mobile devices like smartphones and tablet devices has shifted the market, making the digital format of distribution the preferred mode of accessing content by consumers. Therefore, rapid growth in digital distribution has been observed in the market, which is expected to further grow during the forecast period. In 2014, the digital distribution of movies, which includes over-the-top content and subscriptions accounted for USD 8.5 billion globally compared to the physical copy segment (DVD and Blu-ray discs) which accounted for USD 7.3 billion. "The share of the physical copy segment is further forecast to decline, which will result in the market revenue of online movies to surpass USD 25 billion by 2020," said Soumya. Increase in mobile ad spending The increasein mobile ad spending during the last five to seven years has led companies towards using mobile advertising as a medium for brand awareness. As streaming ads are placed on websites and apps, the growing number of Internet users and their average time spent on Internet browsing will ease and enhance their brand visibility. Mobile phones and tablet devices are equipped with more personalized services such as location-based mobile technology that could help in identifying potential customers for marketing. These technologies will help vendors target their audience with customized offers, which in turn will increase the revenue for online movie providers globally. Increased use of social media Content developers are tapping into social computing tools for marketing, branding, recruitment, and broad-based knowledge management initiatives as they have the ability to provide instant feedback through blogs and other social networking sites. This initiative will drive greater time-efficient and cost-efficient collaboration across global workforces. The vendors test new platforms to market their latest products, services, and solutions to gain public feedback and opinions by registering on social networking sites such as Twitter and Facebook (News - Alert). With the rise of social media, there is also a high demand to track end-user interactions in these sites and enhance their brand. Transition from developed market to emerging market Prominent online movie vendors are shifting their focus to emerging markets because the market in developed countries is becoming saturated. "The digital penetration rate of online movies in the US is above 85% and above 60% in the UK, France, Spain, and Italy; as a result, the demand is decreasing in these markets," said Soumya. "On the contrary, countries in APAC such as China and India, with the largest number of movie releases, have a digital penetration rate as low as 34%. This depicts an enormous opportunity for future market growth in these countries compared to developed countries." Top vendors covered in this report: Browse Related Reports:
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