James Whitebread

Masstech CDO James Whitebread likes a good statistic, and he thought it would be nice to share some stats and predictions around Media & Entertainment, storage, AI/ML, 5G, VR/AR, gaming and more.

Hello again. Over the last few days I’ve been looking at some of the numbers and predictions around future trends in M&E and video storage, and I thought it might be interesting to share some of the more interesting and exciting ones with you.


M&E industry health & outlook

Short-term industry contraction around Covid-19: 5.6% decline in global M&E revenue in 2020

But longer-term positivity: Projected growth in M&E spending in 2021 of 6.4%

5 year growth is expected to climb by 2.8% year on year from 2019 to 2024 (likely driven by the ascendancy of China as a major player in the media and entertainment.

Over The Top services surge during lockdown

            Increase of 26% in revenue in 2020

            Will double from US$46.4bn in 2019 to US$86.8bn in 2024

The effects of the change in consumption habits mean there are those that will fair well from this difficult period and those that will inevitably falter.  There will likely be a spate of mergers and acquisitions as some businesses struggle to survive and others perform strongly, both attracting the attention of investment organisations or competitors looking to expand their market portfolio.

Mobile & 5G

Screens are becoming larger, devices more powerful. Mobiles and tablets now have extreme amounts of processing power, allowing service providers to create even more exciting gaming services, video and content delivery apps as well as business tools we all take for granted; over just a few short years editing video has become a day-to-day practise for many people – imagine that even 20 years ago!

Mobile continues to grow, hugely. Just looking at the two most globally known services from Apple and Google,  we see revenues of over $50B for the first half of 2020 alone (a growth of over 22% for the same period in 2019). The advance of mobile will be supported and accelerated by the bandwidth available under 5G.

5G has a lot to offer the M&E industry: stunning high resolution content experiences in HD and 4K, as well as VR and AR, where high bandwidth and low latency are required to support the experience. 5G will be faster, with lower latency, with more uniform data rates, and is expected to have a substantially lower cost to the consumer.

Data usage & storage

Traffic: 400 trillion megabytes

Data levels have grown year on for the last 10 years, and levels are expected to continue to grow over the next 2-3 years, reaching approximately 400 trillion megabytes of traffic. (PWC)

Storage: 175 zettabytes

A recent Seagate-sponsored report by IDC highlighted that the global data-sphere will increase from around 45 zettabytes in 2019 to a forecast 175 zettabytes in 2025. 

With data storage expected to grow so rapidly we will see a number of continuing trends, such as a focus on extremely fast storage, and content moving from on-prem to the cloud (the same report predicts that 46% of all stored data will be in public cloud).

We also see trends indicating that the use of tape storage is increasing. Increases in both cloud and tape storage likely indicates that cloud providers are utilising tape to provide cost effective cloud storage services at a cost difficult to achieve on premise.

Data Intelligence

Just a decade ago, the utilisation of data for business intelligence was very limited in comparison to the sophisticated collection and automated analysis methods we see in use today. Data forms the basis of many intelligent platforms that allow us to better target customers for retention and acquisition, for example. AI and ML services are playing an increasing role in data collection, storage and usage, and their use in M&E will continue to accelerate (DPP).

VR/AR & Gaming

VR is predicted to see exceptional growth in the first part of the decade, potentially driven by COVID and remote series and entertainment. It’s expected to see a market value of just under $90B in 2020, up from just under $12B in 2019. Growth will be driven out of Asia predominately with North America following shortly behind. With bandwidth becoming more available, VR and AR services can begin to flourish – did you know that VR generates around a terabyte of data per hour, which is considerably larger than regular HD video and even 4K video?

These days gaming sets the pace in the technology world, and acceleration of AR & VR will likely begin in the gaming space before rolling out into other sectors of the technology space. Gaming will also drive uptake of 5G and next-gen consoles and gaming rigs, and a further accelerated increase in online gaming: Absolute Market Insights forecast that the CAGR will be approximately 17% in the period from 2018 to 2027, meaning a growth in online gaming revenue from approximate $68Bn in 2018 up to around $290Bn in 2027.

And this of course also has network bandwidth implications: SANDVINE highlights that Call of Duty Black Ops alone is over a 100GB download! That’s equivalent to around 14 hours of Netflix quality 4K streamed video!


Sources:

https://www.prnewswire.com/news-releases/pulling-the-future-forward-the-entertainment-and-media-industry-reconfigures-amid-recovery-301120586.html

https://www.businesswire.com/news/home/20200520005350/en/Global-OTT-Streaming-Market-2020-to-2030—COVID-19-Growth-and-Change—ResearchAndMarkets.com

https://sensortower.com/blog/app-revenue-and-downloads-1h-2020

www.seagate.com/our-story/data-age-2025.

https://www.mordorintelligence.com/industry-reports/virtual-reality-market

https://www.sandvine.com/hubfs/downloads/phenomena/2018-phenomena-report.pdf

https://www.prnewswire.com/news-releases/global-online-gaming-market-is-estimated-to-grow-at-a-cagr-of-17-5-over-the-forecast-period-owing-to-upsurge-in-immersive-and-competitive-gaming-on-mobile-devices-says-absolute-markets-insights-301042715.html


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