Our entertainment options become more numerous — and more advanced — every year. We keep finding new methods of streaming and monetizing content, and content consumption is more diversified than ever. According to the Pew Research Center, 44% of US adults no longer watch cable or satellite, and the majority say it’s because they can find what they want online.

Digital entertainment spans many different mediums from on-demand video streaming to social media platforms to video games. With so much content created daily, tech and entertainment companies are working hard to be at the forefront of the next trend and take advantage of the latest advancements to create a better viewing experience. So, to help you stay ahead of the curve in 2023, here are the most important trends shaping on-demand digital entertainment.

1. Personalized Content

Gone are the days when consumers sat down to watch their favorite show every week at the same time. Instead, most digital consumers want to watch whenever is most convenient for their schedules and expect their recommendations to be tailored to their interests and moods. With so much data available and the existence of complex algorithms capable of predicting the tastes and preferences of every consumer based on their consumption habits, there’s so much opportunity to personalize content.

Modern consumers only trust platforms and brands that provide consistent and accurate recommendations. Otherwise, it becomes too difficult to sort through the avalanche of content created daily. So, it’s only natural that as digital entertainment becomes more sophisticated, the content will become more niche and personalized to satisfy individual tastes.
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2. Augmented and Virtual Reality

Augmented reality (AR) and virtual reality (VR) are two technological innovations that will revolutionize the entertainment industry and create a new, holistic consumer experience that is immersive and lifelike. Augmented reality is a technique in which CGI images are generated in a real-life setting. In contrast, virtual reality involves creating a new digital world accessible through a headset or other device. Although the technology is still developing, it’s bound to open up all kinds of doors for what creators and tech platforms can bring to life.

The future of television may not be staring at a screen across the room but rather putting on a headset and being transported into the fictional world of your favorite show. AR & VR also offer exciting possibilities for video games by allowing players to inhabit the universe of the game. It’s still up in the air exactly how these technologies will find their way into the mainstream, but what’s certain is they will significantly impact the entertainment landscape in the future.

3. Blockchain

The blockchain offers far more possibilities than just buying Bitcoin and other cryptocurrencies; it also has the potential to transform the entertainment industry completely. Blockchain tech is at the heart of many emerging technologies and can process large sets of data and create communities of passionate fans.

Non-fungible tokens, or NFTs, are one particular technology rooted in the blockchain that has fascinating implications for the future of the entertainment industry. NFTs allow creators to create unique works of art and collectibles that can be saved, traded, or used to gain access to exclusive events. Although the initial crypto craze may have overhyped NFTs slightly, the technology still offers exciting possibilities for building engaged communities and preventing piracy.

About 90% of US and European entertainment companies are researching ways to implement blockchain into their business model. So even if you aren’t the biggest crypto enthusiast, don’t completely count out blockchain tech.

4. Artificial Intelligence

Artificial intelligence is another technological innovation that is destined to disrupt most sectors, entertainment included. However, unlike some industries, AI isn’t likely to make creators obsolete but will instead offer new tools and systems to improve the overall experience for everyone involved. Many tech and entertainment companies already use AI to categorize and classify content for recommendation purposes.

For example, AI bots can now handle many of the menial tasks required to produce films such as segmenting scripts, creating storyboards, and building schedules. Plus, AI is great at helping content creators and their representatives scan the internet for pirated material and enforce copyright restrictions. There are so many ways that AI can be used to enhance the creation and distribution of digital entertainment, and anyone in the industry should pay close attention.
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5. Direct-to-Consumer Models

Social media created a way for everyone to have a voice, regardless of their professional background or experience in the entertainment industry. But now, with so many voices competing for attention on only a handful of platforms, more experienced creators are turning to direct-to-consumer models to grow their careers. Although it’s easier than ever to build a career as a creator, only the top 10% can still make a living through the existing social platforms.

The majority of full-time creators say that most of their income derives from brand partnerships rather than revenue generated on their social media platforms, so many are looking for ways to diversify their revenue streams and connect directly with consumers through their own channels. While creators will still use existing social media platforms to grow and reach a larger audience, D2C models are becoming increasingly prevalent, and anyone in the industry should pay attention.

These are just a few of the trends that are shaping on-demand entertainment. So if you’re looking for ways to stay ahead of the curve and predict the next big thing, pay attention to these emerging innovations.