Digitalization and Disruption: The Rise of Digital Media
While local industry leaders in lm, television and music are still major contributors to the Los Angeles Basin economy, the region’s motion picture and sound recording pro le is evolving beyond traditional movie and television production. Digitization is disrupting almost every aspect of the media and entertainment industry . . . altering nancing and capitalization strategies, and greatly affecting business models, forecasts and industrywide trends . . . a concentrated and specialized digital media industry has emerged, swiftly scaling and changing the entertainment industry in the Los Angeles Basin by blending digitized content and new distribution technologies.
This fast-growing digital media and entertainment industry is characterized by a diverse array of technology and content rms
and includes sectors as assorted as digital advertising, web gaming, interactive media, augmented reality, virtual reality and animation. This blended digital media and entertainment ecosystem combines the creative product with data to drive adoption and respond to shifts in consumer behavior. . .
In the Los Angeles Basin, homegrown digital content rms are ascending as dominant players in digital media, such as Snap Inc., Fullscreen (which was acquired by AT&T and the Chernin Group), Makers Studios (which was acquired by the Walt Disney Company), and AwesomenessTV (which was bought by Dreamworks). Digital content rms are expanding into more traditional forms of entertainment, such as lm and television. Prominent Silicon Valley, Seattle and New York rms such as YouTube, Vice and Buzzfeed
are enlarging their footprint in the region as they shift from being content distributors to content creators. Not only are these new rms competing with traditional content creators, but, in some instances, they are supplanting them in market share and cultural prominence.