COVID-19 Accelerates Digital Media Market
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Global digital media market value grew 16% in 2021 to reach $345 billion; video gaming is the largest segment, accounting for >50% of the market value
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Digital media projects rely on diverse skill sets across stakeholders, including storytellers, programmers, and animators
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In markets such as India, the growth in digital media has been fueled by government policy alongside sustained innovation
COVID-19 Accelerates Digital Media Market
In July 2020, during the early days of the COVID-19 pandemic, Amazon launched 'Amazon Party' to enable users to watch videos together but remotely, accounting for the lockdown guidelines. Subscribers could synchronize movies and TV shows on the streamlining service remotely with friends and family without using an extra plugin or additional apps. Subscribers could stay connected with up to 100 members and a standard and customizable chat room where they can chat while watching movies.
Digital media has grown significantly recently, fueled by sustained innovation over the long term and increased virtual entertainment events since the first wave of the COVID-19 pandemic. Digital media can exist in various forms: an app on a smartphone, a video game, or even a medical imaging device in a hospital. Such products attained prominence over time since they are user-friendly, effective, and inherently interactive.
Investments and Policy Initiatives
In January 2022, Saudi Arabia announced a program called 'Ignite,' a $1.1 billion initiative to transform the country into a front-runner in digital media. Saudi Arabia's Digital Content Council stated that the initiative aims at tripling the country's digital content market size for gaming, audio, video, and advertising. Additionally, the initiative seeks to upskill more than 4,400 people over the next three years in gaming, films, and digital advertising. The focus on digital media also led to the enhancement of connectivity and communication. Saudi Arabia launched Wi-Fi 6E technology, which will allow the country to use the fastest achievable Wi-Fi speeds globally. In terms of the impact of digital media on the Saudi economy, the kingdom showcased investments in related future technologies and entrepreneurship to the tune of more than $6.4 billion – all aimed at boosting the digital economy. As a prelude to Ignite, in January 2022, the Public Investment Fund, Saudi Arabia's sovereign wealth fund, launched a new gaming company.
Elsewhere, in important markets such as India, with a high number of mobile and internet users, digital media's growth has been fueled by changes in government policy and other state-sponsored initiatives. In the Union Budget for 2022, factors such as rural broadband connectivity, the roll-out of 5G, and the legal recognition of virtual digital assets highlight the government's focus on digital media in the coming years. There is also a proposal to set up an animation, visual effects, gaming, and comics (AVGC) promotion task force. Such developments reflect the impact of digital media on a modern economy, both in terms of rapid innovation within the space and the increased demand for related products and services.
The Sustained Growth of Digital Media
According to GlobalData, the global digital media was valued at $345 billion in 2021, growing at a CAGR of 15% during 2018–2021. Video-on-Demand is the fastest-growing segment within the digital media market, followed by Video Gaming and ePublishing. The global market is expected to reach $530 billion in 2025, growing at a CAGR of 11% between 2021–2025.
The number of active jobs within the digital media spanning sectors increased nine-fold from 2,997 openings in 2019 to 25,795 in 2021. Companies working on digital media products rely on diverse skill sets in different teams. For example, developing a video game requires storytellers, programmers, artists, animators, and project managers, to name a few of the stakeholders.
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