at a CAGR of 27.9%. The market has seen a significant increase in the recent past and is predicted to grow significantly during the forecasted period as well.
AI in media & entertainment includes the use of
artificial intelligence (AI) technologies to develop, distribute, & customize content in the media & entertainment industry, which includes using AI algorithms to assist with tasks like content creation, distribution, recommendation, and engagement.
According to Zipdo, AI is driving transformative changes in the media and entertainment industry, with AI-based predictive analytics improving audience retention rates by 20%. Currently, 77% of media companies have adopted AI for content recommendation, and 78% are expected to implement AI technologies by 2025.
Investment in AI is growing at an annual rate of 30%, driven by its ability to increase viewer engagement by up to 25% and enhance content discoverability by 70%.
AI’s impact extends across content creation, production, and audience interaction. AI-driven tools can reduce production time by 30%, increase workforce productivity by 50%, and handle up to 80% of customer inquiries through chatbots.
Additionally, 84% of media executives believe AI will deliver highly personalized user experiences, while 72% see AI influencing every aspect of content creation and distribution.
The market’s momentum is underscored by widespread adoption 90% of U.S. media executives believe AI will revolutionize the industry, and 68% emphasize its role in advancing content discovery. Furthermore, 82% of media professionals anticipate that AI will create new jobs, demonstrating its potential as a growth catalyst rather than just a cost-cutting tool.
The integration of AI in media and entertainment is revolutionizing the industry, offering opportunities for efficiency and creativity. Conferences such as the AI Media & Entertainment Summit bring together innovators to discuss AI's role in content creation, personalization, and audience engagement.
Deals and mergers are on the rise, as companies like Disney and Netflix leverage AI for predictive analytics, immersive experiences, and cost-effective production. Emerging opportunities include AI-driven virtual production,
deepfake prevention, and real-time content localization. As AI transforms storytelling and distribution, the demand for cutting-edge solutions ensures a dynamic landscape for collaboration, investment, and innovation in this evolving sector.
Market Dynamic
Supporting government initiatives are set to have a positive impact on the industry's growth. AI systems are constantly being deployed to recognize objects & behaviors in sports events, improving broadcasts with engaging content & detailed sports analysis, like capturing the excitement & reactions in a soccer match.
These visuals play a major role in crafting a compelling narrative during live broadcasts. Companies are using AI to offer personalized content customized to users' preferences when they browse video platforms while making sure a better viewing experience for users with varying internet speeds and bandwidths.
Moreover, the incorporation of AI enhances analytics by using
Machine Learning (ML) and
Natural Language Processing (NLP) to interpret immense data, a large portion of which is unstructured (around 80 percent). These AI systems can empower businesses by using tools such as visual recognition, sentiment analysis, personality insights, conversation capabilities, & tone analysis to attain a competitive edge.
Research Scope and Analysis
By Solution
In 2023, the service sector takes the lead in AI in media & entertainment market. This lead is driven by the growing use of computer-generated graphics & visual effects in movies & ad commercials, which is anticipated to have a positive impact on market growth. Additionally, ongoing development in AI-based technologies makes it possible to build more captivating content with advanced visual effects.
In addition, the service segment is predicted to experience rapid growth due to a shortage of skilled professionals in virtual production & VFX technology. As a result, many film studios & content creators often enlist the help of specialized agencies to incorporate VFX into their video productions.
Moreover, the hardware segment is also anticipated to have significant growth in the forecast period due to rising demand for live background visuals, mainly for in-house video shoots. This growth is driven by the growing AI ecosystem, which is addressing growing complex challenges across different applications.
As AI-based virtual production technology gains traction in film studios & TV productions, there's a growing demand for hardware such as virtual camera systems, motion capture workstations, & simulation cameras, leading to a growth in demand for such virtual production equipment.
By Application
The sales & marketing segment dominates the market in 2023 with the highest revenue share. Moreover, marketing has the major share of global sales & market revenue. AI is utilized for marketing or trading aspects, like design, advertising, & promotions in the media & entertainment sector. Smart AI work-frames can build creative marketing & advertising solutions.
Also, the customization segment has been noticing significant growth over the recent past. Prominent video & music streaming platforms, like Spotify & Netflix, are also successful as they deliver distinct user preferences & tastes for consumers from across the globe.
Moreover, AI is extending its importance in automating sports broadcasts, improving precision & efficiency in live streaming, broadcasting, and analytical services. Through advanced sports automatic production technology, content creation can be done more quickly. Additionally, AI plays a major role in the gaming sector, mainly in controlling Non-player Characters (NPCs). It uses player action analysis to predict their next moves & can even adapt to changes in a gamer's behavior during specific in-game situations.
The Global AI In Media & Entertainment Market Report is segmented on the basis of the following:
By Solution
By Application
- Gaming
- Sales & Marketing
- Personalization
- Plagiarism Detection
- Talent Identification
- Sport Automatic Productions
- Others
Regional Analysis
North America takes the lead in the market, contributing more
than 39% of the total revenue in the global AI in Media & Entertainment Market. This strong growth and hold in the market can be owing to the major investments made by companies in the region towards R&D, mainly in the creation of AI-powered virtual production software solutions. A major trend in North America is the growing prominence of voice & speech recognition technology using AI, which has been a significant development in the region's AI industry.
Also, Latin America is anticipated to notice high growth over the forecast period, as the organizations in the region are capitalizing on initiatives to implement AI technologies in the future.
By Region
North America
Europe
- Germany
- The U.K.
- France
- Italy
- Russia
- Spain
- Benelux
- Nordic
- Rest of Europe
Asia-Pacific
- China
- Japan
- South Korea
- India
- ANZ
- ASEAN
- Rest of Asia-Pacific
Latin America
- Brazil
- Mexico
- Argentina
- Colombia
- Rest of Latin America
Middle East & Africa
- Saudi Arabia
- UAE
- South Africa
- Israel
- Egypt
- Rest of MEA
Competitive Landscape
The market is highly competitive, with only a few prominent players exerting significant control. These key players look at innovation, continually developing new products, & forming strategic alliances to improve profitability. By looking at these strategies, they focus on enhancing customer interactions & delivering superior experiences, with intense competition driving companies to stay at the lead of industry advancements, strong innovation, and promoting the development of advanced solutions to meet changing customer demands, ultimately benefiting consumers with better products & services.
For instance, in August 2022, Veritone Inc. announced its partnership with Amazon Web Services (AWS) to better serve its Media & Entertainment (M&E) customers.
The collaboration started when Veritone joined the AWS for Media & Entertainment program in the previous year, focused on supporting rights holders, content creators, distributors, & producers in using industry-specific AWS capabilities to grow innovation in the media & entertainment sector. Veritone's constant assistance for this program shows its commitment to ease the content creation, distribution, & monetization process for intellectual property owners of all sizes.
Some of the prominent players in the Global AI In Media & Entertainment Market are:
- NVIDIA
- Microsoft Corp
- Intel Corp
- Google LLC
- Oracle
- Veritone
- IBM Corp
- GrayMeta
- EMG
- Synthesia Ltd
- Other Key Players
COVID-19 Pandemic & Recession: Impact on the Global AI In Media & Entertainment Market:
The COVID-19 pandemic and the resulting economic recession had a major impact on global AI in the media &entertainment market. Various companies in this industry faced interruptions as production halted, live events were canceled, & advertising budgets were limited. However, AI technologies played a major role in content creation, recommendation systems, & virtual experiences, assisting the sector in adapting to new issues & evolving consumer behavior. As the world gradually recovers, the AI in media & entertainment market is anticipated to continue its growth, driven by innovation & the need for more personalized & engaging content experiences.
Recent Developments
- In 2024, Veritone, Inc. (NASDAQ: VERI), a leader in AI-driven enterprise solutions, revealed its participation at IBC2024 in Amsterdam from September 13-16. At its booth located in Hall 1, A.21 at the RAI convention center, Veritone will demonstrate its suite of solutions designed to help media and content owners monetize their assets instantly and boost revenue growth.
- In 2023, Krikey.ai, an innovator in AI tools, unveiled an AI Animation partnership with Stability AI. The newly launched AI Text to Animation tool allows users to generate avatar animations from simple text prompts in just minutes. Users can export these animations as video or FBX files for use in social media, 3D game engines, or film editing software. The tool also offers customization options for 3D avatars, with additional features set to roll out later this quarter.
Report Details
| Report Characteristics |
| Market Size (2023) |
USD 18.0 Bn |
| Forecast Value (2032) |
USD 164.7 Bn |
| CAGR (2023-2032) |
27.9% |
| Historical Data |
2017 - 2022 |
| Forecast Data |
2023 - 2032 |
| Base Year |
2022 |
| Estimate Year |
2023 |
| Report Coverage |
Market Revenue Estimation, Market Dynamics, Competitive Landscape, Growth Factors and etc. |
| Segments Covered |
By Solution (Hardware and Services), By Application
(Gaming, Sales & Marketing, Personalization,
Plagiarism Detection, Talent Identification, Sport
Automatic Productions, and Others) |
| Regional Coverage |
North America – The US and Canada; Europe – Germany, The UK, France, Russia, Spain, Italy, Benelux, Nordic, & Rest of Europe; Asia- Pacific– China, Japan, South Korea, India, ANZ, ASEAN, Rest of APAC; Latin America – Brazil, Mexico, Argentina, Colombia, Rest of Latin America; Middle East & Africa – Saudi Arabia, UAE, South Africa, Turkey, Egypt, Israel, & Rest of MEA
|
| Prominent Players |
NVIDIA, Microsoft Corp, Intel Corp, Google LLC,
Oracle, Veritone, IBM Corp, GrayMeta, EMG,
Synthesia and Other Key Players |
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