21 January 2022

Exponential advances in technology have changed entire industries, especially over the past 10 to 15 years. For example, Netflix, Amazon Prime, Hulu, and other digital channels/streaming services have acted as massive disruptive forces within the media and television industries. Given the rapid pace of technological change, the landscape will continue to evolve and look completely different a decade from now. Let's look at three trends that are likely to develop over the next 10 years in the entertainment industry.

The cable TV industry has traditionally featured a lineup of popular channels that customers purchase as packages. The bundling of channels gives consumers the option to buy a combined package, which theoretically costs less than buying each channel separately.

However, cable TV is facing growing competition. With streaming services such as YouTube, HBO, Hulu, Netflix, Apple TV, and Amazon Prime producing and offering premium shows, the interest in traditional cable television has declined.

2. Commercials Become Antiquated

Streaming-service providers are proving that it's possible to create and grow successful enterprises around a business model that includes little or no revenue from commercials. The trend is now changing to one based on a subscription model rather than on ad revenue. In 10 years, even traditional cable providers are likely to completely become subscription services, allowing unbundling and a tiered-fee structure based on the type and number of channels a consumer chooses.

Further, a hybrid model may be available 10 years from now, in which a subscription service is combined with smart advertising. In this scenario, rather than having three-minute commercial spots during a 30-minute television program, TV programming may change to one where a consumer will be required to have a monthly subscription, so that they hen view targeted banner ads. This type of advertising already occurs on the internet, and the amount of data television companies collect allows them to do much the same.

3. More Interactivity

Companies such as Meta (formerly Facebook), Google, and Microsoft have all developed virtual reality technologies. Within the next 10 years, traditional television screens are likely to make way, at least in part, for variations that pair with virtual reality (VR) eye-wear and headsets. Evidence of this is already available in Google's development of Google Glass as well as Samsung's foray into wearable accessories that help turn phones into virtual reality machines.

What's more, all televisions are likely to become smart TVs within the next 10 years. Expect these devices—which allow users to stream videos and music, browse the Internet, and view photos—to be ubiquitous in homes across the world, adding to the power and potential of virtual reality and future programming.

There is a race among technology giants to be the leader in smart TV development, including companies inside and outside the industry. Businesses such as Google, Apple, Netflix, and Amazon are all developing more powerful smart TVs, and the trend is likely to make the technology much more affordable for consumers.