Key Revenue Factors
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
Key Cost Factors:
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.
Porter's Five Forces Analysis
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.
