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Tapping Into The Global Growth Of The Gaming Community In 2018, the global video game industry generated a record $138 billion in revenue, with territories like China, India and the U.S. showing double-digit revenue growth, according to the consulting firm NewZoo. Moreover, in 2019, Pew Research estimated that there are now more than 5 billion people globally that have smartphones, and as the Internet and 5G are further introduced in Eastern territories like China and India, there will be millions of more people who will be able to leverage smartphones and the Internet to tap into the global gaming ecosystem. For creatives, brands, and artists, this represents an opportunity to connect with a global audience at scale and connect with territories that for a long period of time have been closed off to the open internet. The Congested Festival Market Is Less About Mass Appeal And More About Target MarketingThere are currently more than 800 music festivals in the U.S. alone. On average, about 7-10 music festivals are created each year. Yet, with so many festivals out there and only so much disposable income from consumers, the festival strategy of mass appeal is moving towards hyper-focusing around targeting particularly as the average ticket price for a festival has dramatically increased over the past decade. Consider the fact that the average ticket price rose from $12 in 1981 to $61 in 2017. This rise in price is also happening at the festival level. For instance, a three-day pass for this year’s Coachella music festival cost $429, a 35% increase in price since the festival’s conception. Moreover, with a recession said to hit the US economy in the next year, it is likely consumers will not be as willing to spend their disposable income on experiences like music festivals. To win in today’s festival market, developing niche music festival products that better cater to a specific audience will see more scale and growth as the fight to differentiate a festival product has never been more difficult.The Rise of AI In MusicThe fourth industrial revolution is in full effect, and companies, particularly in the music business, need to prepare a new set of strategies if they are to adapt and take full advantage of AI’s wave of change. How impactful will AI be? Well, according to a recent report by McKinsey, 70% of companies will likely adopt at least one type of AI technology by 2030. The same report says AI also has the potential to deliver additional global economic activity of around $13 trillion by 2030, or about 16% higher cumulative GDP compared with today. For the music business, AI may serve as one of the most influential tools for growth, as we enter an era where humans – from artists and songwriters to A&Rs (artists and repertoire) and digital marketers in labels – will be complemented by AI in various forms. The introduction of mature AI will ultimately allow creatives and corporations alike to reimagine the creative process, target new fans, and identify the next set of musical stars with greater accuracy and precision than we ever imagined. We, as a business and culture, need to embrace AI as an enablement tool to shape the music business of tomorrow.
