When content is seen as king, content creators hold all the cards. Over the years, that power has spread out from studio and recording execs to include top billed talent, but it’s been a close knit circle. Technology disrupted the industry, but it did not disrupt the food chain – just look at the scandals at Netflix’s House of Cards. As the dominoes continue to fall with new abuses of power coming to light daily, is 2018 the year the fan is finally king?
Millennials care about values – you know this, big brands know it, and it looks like the entertainment industry is acting on it. With so many ways to access and share information, there is a transparency that wasn’t possible 10 years ago. The world is watching and judging with their time and money.
It’s no secret that competition for attention is at an all-time high. Whatever your role, you’ve probably had to discuss fan engagement with a social team. They need BTS, an exclusive, just five minutes, please. It’s clear social media has changed how we connect with audiences, but entertainment industry shifts are often discussed in terms of technology and platform changes. SVOD and subscription music services are leading to a rise in live entertainment to break through the clutter. Our entertainment industry trends for 2018 suggest that it isn’t just technology after all, but the power shift from creator to consumer that is driving growth and change.
1. Virtual reality needs to inspire fans – For the past few years, every year has been the one where VR would explode and become mainstream. It hasn’t happened yet, and it probably won’t in 2018. Naysayers are already pointing to 3D TVs. VR has a lot of practical applications in industries beyond entertainment that can lead to huge savings and risk reduction. For example VR can be useful in risk reduction in industries like healthcare, construction, manufacturing, etc. due to immersion training, being able to measure worker safety issues and reaction without putting anyone in danger, so it’s here to stay. But until fans find an experience to evangelize, it’s unlikely to add value beyond PR for entertainment companies.
VR and esports are forecasted to drive industry growth, but a key difference that has rocketed esports to popularity and left VR adoption in the dust is that fans are thirsty for more. Until fans are given content they crave, they won’t invest in the necessary equipment, regardless of the cost. While viewing esports is as simple as turning on your TV now, the core gamers who helped swell esports into the mainstream by developing Twitch content and attending competitions spend plenty on computer upgrades and gear.
What does this mean for your 2018 investment in VR? It’s still buzzy and cool, just don’t bet on it driving revenue. Being so new, a lot of the safety risks haven’t been fully researched or come to light through heavy adoption yet. This is particularly true for how it affects development in children, so consider age minimums and think through where liability could lie.
2. Fans and creators win through targeting – The ability to know who is listening to your music or watching your show is a game changer. Imagine the possibilities for fan engagement, promotion, and revenue generation. This can go beyond basic remarketing tactics like theatres targeting movie goers when the sequel comes out or Netflix recommending a show. Artists who know who’s been listening to their music the most on Spotify can engage those super fans in an elevated way with an exclusive, as well as promoting merchandise and local tours. This is taking the fan club to the next level. It can be an extension of the micro-influencer trend that brands have started to employ. Instead of using social media celebrities with millions of followers, you can promote through an increased number of people, who have smaller, but more engaged followers.
Your everyday fans are rewarded for their behavior, strengthening their brand love, and eliciting truly authentic responses. If you go down the path of using fans as part of promotion, remember that fans are human. The same challenges that brands have had with celebrity endorsers who bring negative attention through their behavior and comments remain relevant since anything has the potential to go viral.
3. Brands bring festivals to fans at home- What was once a grass-roots effort by die-hard music fans, festivals are a major business today, just not always a successful one. 2017 disappointed ticketholders around the world from the cancellation and bankruptcy of Pemberton Music Festival in British Columbia to the disastrous Fyre Festival in the Bahamas.
Festivals are going to keep getting more expensive to put on as experiential experiences get more complex, but luckily, brands are ready to step in to get access to a highly engaged audience. They’re also going to be looking to extend their reach to all the fans at home, one area where VR is being leveraged. Fans and festivals can both benefit from the investment, but organizers need to be aware that partnership can also create uncertainties and exposure if responsibilities aren’t clearly outlined.
4. Safety takes center stage – The world continues to heal from major acts of violence at entertainment venues in the last few years. We sincerely hope these senseless acts don’t continue, but as live events increase in importance to engage fan bases, we must learn to assess vulnerabilities in new ways. Keep in mind this is goes beyond music and is equally important for sports, esports, theatres, and fan gatherings like Comic-Con.