"In the whirlwind of lights, camera, and captivating stories, the digital media and entertainment industry pulsate with the rhythm of human experience. It's a kaleidoscope of sights and sounds, where dreams take flight on silver screens and captivating narratives take hold of hearts across the globe. "
The business model emphasizes the interconnectedness of the various stakeholders in the advertising industry and highlights the flow of value and services among them. It showcases the intricate relationships that enable businesses to effectively reach their target audience through a network of media-related entities.
At the core of this model are businesses seeking to market their products. These businesses engage advertisers or advertising companies to create compelling marketing campaigns. The advertisers, in turn, collaborate with media buying agencies to strategically purchase advertising time or space from media owners. Media owners, such as television networks, radio stations, or digital platforms, are responsible for broadcasting content and advertisements to the end consumers.
Consumers are at the heart of this model, as they are the target audience for the advertisements. They consume the content provided by media owners, which is interspersed with advertising. In exchange for this content, consumers may pay subscription fees or provide their attention to the advertisements, which is of value to the advertisers or the advertising companies.
Production companies are also a critical component of this ecosystem. They are tasked with creating the digital content that media owners broadcast. This digital content needs to be engaging to ensure that consumers remain attentive, thereby providing a suitable platform for advertisers to showcase their products.
The revenue drivers of the Entertainment and Media industry in Bangladesh is influenced by the following factors:
1. Market Growth: The overall media market in Bangladesh is expected to grow significantly, with projected revenue reaching US$3.11 billion in 2024. The largest segment within the market is Games, contributing a substantial portion of the revenue.
2. Digital Media: The projected revenue in the digital media market in Bangladesh is expected to reach US$1,117.00 million in 2024, with Video Games dominating the market segments.
3. Consumer Preferences: A young and rapidly growing population that is increasingly tech-savvy and connected, with a high demand for digital media content.
4. Mobile Internet Access: Approximately 65 million people in Bangladesh have mobile internet access and increasing connection speeds are driving the demand for all types of digital media.
5. Government Initiatives: Government initiatives encouraging foreign investments in the media and entertainment industry contribute to market growth
Recent cost driving factors of the Entertainment and Media industry in Bangladesh include:
1. Political Control and Censorship: Political control over media ownership and licensing, along with a high level of self-censorship, can lead to increased operational costs.
2. Predatory Corporatization: A culture of predatory corporatization has led to a loss of credibility of news media in general, impacting revenue and increasing costs.
3. Digital Transformation: The shift towards online and digital media platforms requires investment in digital infrastructure, which can be a significant cost factor.
4. Content Creation: High-quality engaging content creation, utilization of AI and blockchain, collaboration, and content targeting future-ready citizens are essential but can be costly.
5. Market Competition: The growing popularity of digital media, particularly among younger demographics, has increased competition and the need for innovation, driving up costs.
The Porter’s Five Forces analysis for the Entertainment and Media industry in Bangladesh are outlined below. These factors impact how businesses compete and conduct business in Bangladesh's E&M sector, hence defining the sector's strategic landscape.
1. Threat of New Entrants: The entertainment and media industry has relatively high entry barriers due to the need for substantial capital investment, content creation costs, and established distribution networks. However, digital platforms have lowered some barriers, allowing new players to enter the market. Overall, the threat of new entrants is moderate.
2. Bargaining Power of Suppliers: The bargaining power of suppliers is high, especially for unique content creators. Suppliers in this industry include content creators (writers, actors, musicians), production studios, and technology providers. Whereas, established studios and artists may have more negotiating power, while smaller suppliers may be more dependent on industry players.
3. Bargaining Power of Buyers: Consumers have high power due to abundant content choices and easy access through streaming services, social media, and digital platforms. They can switch between providers, demand personalized content, and influence pricing.
4. Threat of Substitutes:The threat of substitutes is high due to the availability of various alternative entertainment sources, including free-to-air TV, online streaming platforms, and other digital media services.
5. Industry Rivalry: Bangladesh's digital Entertainment business is highly competitive, with numerous domestic and foreign companies vying for market dominance. The quick speed of technology advancement and the low switching costs for customers increase this competition.
According to PwC’s Global Entertainment & Media Outlook 2023–2027, the total global digital entertainment and media revenue rose 5.4% in 2022, to US$2.32 trillion. However, the Entertainment and Media industry anticipates a gradual decline in growth rates, with revenue projected to increase by only 2.8% annually by 2027, necessitating a resetting of expectations and a focus on recharging growth strategies. Concurrently, consumer spending faces challenges stemming from inflation, pandemic fatigue, and geopolitical uncertainties, prompting a pullback in expenditures. Meanwhile, the industry is witnessing a significant shift towards digital transformation, with the proliferation of content and intensified competition among digital content providers reshaping its trajectory. Notably, the rise of over-the-top (OTT) platforms is propelled by factors such as widespread mobile internet access, escalating connection speeds, and the proliferation of online streaming devices, contributing to the burgeoning demand for digital media consumption.
The Digital Media market in Bangladesh is projected to grow by 10.77% from 2024 to 2027, resulting in a market size of US$1,518m in 2027. In 2024, the projected revenue in the Digital Media market in Bangladesh is expected to reach US$1,117m. Among the various market segments, Video Games is expected to dominate. Bangladesh is experiencing rapid growth in the digital media market, with a surge in online news platforms and social media usage.
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