Global Film and Music Market Encouraging New Entrants

The global film and music market is expected to grow from $289.13 billion in 2020 to $308.97 billion in 2021 at a compound annual growth rate (CAGR) of 6.9%, encouraging startups and new entrants to the market as costs and barriers to entry become lower and lower.

Demand for content by streaming services such as Netflix increasing

The growth is mainly owing to production companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures. The film and music market consists of the revenues from the production and/or distribution of motion pictures, videos, television programs, or commercials, from the exhibition of motion pictures or from the provision of post-production and related services, or of the production and distribution of musical recordings, from publishing music, or from providing sound recording and related services earned by entities.

Major companies in the film and music market leading the drive include Time Warner; Sony; CBS Corporation; Walt Disney and Twenty First Century Fox, in a market that is expected to reach $392.34 billion in 2025 at a CAGR of 6%.

North America is the largest region in the global film and music market, accounting for 39% of the market in 2020. Western Europe was the second largest region, accounting for 34% of the market, while Africa was the smallest region in the global film and music market.

The increasing demand for content by streaming services such as Netflix, the lower barrier to entry for new filmmakers, and readily-available technology—such as professional templates for animated stories—as well as the penetration of newer distribution platforms like internet protocol television (IPTV) and direct-to-home (DTH) and online platforms such as YouTube and Vimeo, are also driving the growth of the film and music market.

Motion capture technology driving down costs

Digitization of TV platforms is paving the way for better sound and picture quality for viewers and increased revenues for stakeholders in the value chain. Film and music production companies are increasingly adopting motion capture technology to reduce costs associated with key frame-based animations. Motion capture is the process of recording a live motion event and translating it into actionable data that allows a 3D recreation of the performance.
To achieve these, performers need to wear reflective markers all over their body which are then interpreted by a computer and turned into digital 3D models. Through this technology real time results are achieved faster, and it also reduces the cost of key-frame animation. Some recent box-office blockbusters which incorporated motion capture technology include Avengers, Captain America, Beauty and the Beast, Guardians, and Iron Man.