The world of online entertainment has been evolving rapidly of late as it moves to incorporate the latest trends in technology in order to cut costs, increase revenues and expand its audiences. As such the sector holds vital clues about where the wider online commercial market is likely to move in the coming years. But what elements of today’s digital entertainment industry are at the vanguard of this transformation? Let’s explore the likeliest contenders below.
Gaming
The digital games industry is at its largest and most influential point in its 50+ year history thanks to recent steps taken to optimise its offerings with novel monetization approaches. Of these, the best known is the freemium model – though it’s far from the most successful. That accolade is reserved for the world of microtransactions and live service titles. These are typically found in popular games such as Call of Duty Warzone, which offer players access to their base game for free, but charge a seasonal fee – known typically as the season or battle pass – for continued access to the game.
In exchange, the developers get to continually update the product with the steady flow of revenues, thus maintaining an ongoing and evolving gameplay experience. In addition to this is the phenomenon of microtransactions – small DLC packets that typically consist of customisation features, be them player skins, logos or weapons. Despite the low cost of these items, they have proven immensely successful, with certain games such as CS:GO even enjoying a huge second-hand market in rare items. These factors come together to ensure that the sector is able to continually generate revenue from a single title while simultaneously keeping player numbers high.
Of course there’s more to the world of gaming in 2024 than free-to-play arena games. For example, reputable platforms that host texas holdem poker are presiding over a veritable golden age for hybrid card and table experiences. The reason for this being that these perennial casino classics have had new life breathed into them by their rising profile in the world of esports. Otherwise known as competitive gaming, in recent years the esports world has burst onto the mainstream and has brought mature online gaming communities such as those found in the poker scene along with it. This is due in no small part to the enduring success of streaming platforms like Twitch, which have served as the perfect venue for new players to discover the quality gameplay offered by these long-lived titles.
Social Media
When the likes of Myspace, then Facebook came along, they fundamentally changed the way people used and related to one another on the internet. By centering interactivity, these platforms ushered in the age of Web 2.0.
Fast forward to today, and the vast majority of the internet’s traffic – over 60% – takes place exclusively on the likes of Instagram, TikTok and X. These platforms pioneered a wholly new and supremely successful business model. By utilising the information gathered on its users through their engagement with their apps and platforms, the social media sector has access to the highest quality and most detailed targeted marketing data of any market and over 95% of its revenues is derived purely from selling this information to brands.
Of course this is not without benefit to the end user, with targeted advertising often able to so perfectly hone in on the interests of its users that more and more people now choose to shop exclusively on these apps. With the launch of TikTok Shop in 2024, we’re witnessing a further evolution of this pivot away from the more conventional eCommerce platforms. Increasingly consumers are discovering new brands and purchasing from them entirely in-app.
With the rise of ever more sophisticated and affordable AI models, this approach only makes more sense as algorithms grow more refined and the ability to generate marketing materials and bespoke adverts comes down.
