The Gaming Industry Is Now Bigger Than Movies and Music
By TOI Staff April 13, 2023 Update on : April 13, 2023
The gaming industry has recorded astronomical growth over the last decade, cementing its position as one the world’s most lucrative markets. But did you know that it is so lucrative, it is giving the movie and music industries a run for their money? According to data from the past few years, the gaming industry rakes in more money that these other entertainment sectors combined. In 2021, its global earnings rose to a whopping $180 billion. Here is a closer look at the growth the gaming industry is experiencing, and what might be causing it, and how it compares to music and movies.
The Numbers (2020)
A report by Reuters shows that the global gaming market was worth $159.3 billion in 2020. This number grew to $178.2 billion in 2021 and an estimated $196 billion in 2022. Per the report, this value represents the earnings from different sectors within the market, including mobile games, PC games, console games, and esports.
In the same year, the movie industry made $41.7 billion and the music industry was valued at $19.1 billion. Per these numbers, the gaming industry made about four times what the movie industry did and was valued at thrice the value of the music industry. It also made more than both markets combined.
A more precise comparison shows similar results. Marketwatch reports that Grand Theft Auto V earned over $6 billion in 2020. At the same time, the highest grossing film ever – Avatar – has raked in around $2.8 billion. In all fairness, this direct comparison is not very accurate since online games have more monetization avenues than movies and films.
Confirmation from Industry Bigwigs
Still, video games are undoubtedly making more money. In fact, notable entertainment corporations and stakeholders have confirmed the same. In an administrative complaint filed against the Activision Blizzard King acquisition by Microsoft, the FTC described gaming as, “the largest category in the entertainment industry.” The statement also affirmed that the revenues earned by the gaming industry far exceed those of the music and film industries.
Mobile Gaming as a Development Driver
But why exactly has the gaming industry taken over entertainment? According to industry experts, mobile gaming is one of the key drivers of success in the gaming industry. The proliferation of the internet and improvement of mobile devices have increased the accessibility of mobile games. Mobile gaming as a concept has eliminated the fanbase barrier created by console gaming, allowing anyone with a smartphone and internet connection to engage in their favorite games.
This growth has also filtered into the online gambling sector – another major earner within the gaming industry. Mobile sites and apps have allowed players from across the world to access the best real money casinos in Australia and other parts of the globe. Consequently, the online gambling industry made $58.2 billion in 2021, making it a major earner all by itself. Mobile gaming itself was worth $86.1 billion in 2020 and a bigger earner than console and PC gaming.
Other Factors – Esports
The gaming industry is also receiving a boost from other sectors and innovations within the market. Esports, for instance, was valued at $1.1 billion in 2020 and is expected to keep growing. By creating active competitions from video games, this sector has widened the gaming fanbase even further. This growth has also brought in other forms of entertainment like YouTube and Twitch streaming.
Overall, key innovations and technological advancements within the gaming industry continue to make it more financially viable than the music and film industries. As the music and movie industries stick to a tried and true formula, the gaming market seems to be adapting to key changes in technology. This is reflected in innovations like mobile gaming, VR technology, AI, the Metaverse, 3D graphics, and more. At this rate, the industry will far outpace its competitors in a few years.