The Japanese entertainment industry, once a staple of the economy, is once again being transformed by a new wave of digital technology.
The country is expected to add $1.7 trillion in annual economic output by 2020, with an expected $2.4 trillion in sales, and the industry is expected in 2019 to be worth $11 trillion, according to a Reuters poll.
The news comes as entertainment industry companies, led by the biggest three companies in the industry, are taking a new approach to digital sales, a move that will allow them to deliver more value and more entertainment without compromising on the quality of entertainment.
Japan is the largest economy in Asia and the fourth-largest in the world.
It has a $19 trillion economy.
Its top three companies – Disney, Walt Disney Co., and Sony Corp.- have collectively reported revenues of about $11.4 billion in the past 12 months.
That has led to some big changes in how entertainment companies operate.
For example, the country is now the second-largest producer of live-action movies and television shows, after China.
The industry also is expected increase revenue by $4.4 to $18.5 billion in 2019, according with Bloomberg.
It is also expected to have the most content creators per capita in the region and the biggest share of the entertainment industry.
The industry is growing faster than the economy at large, and that will give the industry greater opportunities to compete with its rivals in China and other emerging markets, said David Waddell, a partner at consultancy ABI Research.
The entertainment industry now is in a position to become a much more important player in global entertainment, said Mark Mazzuca, an analyst at Cowen & Perk.
And it is also able to leverage a larger and more diversified consumer base, he added.
The country also has the highest rate of internet penetration of any country in the global economy, according a recent survey from Kantar Worldpanel ComTech.
And entertainment companies are finding that they can compete with the digital platforms.
Last month, Disney announced it had surpassed Apple Inc. to become the world’s biggest online entertainment company.
The deal is valued at $7.6 billion.
The biggest digital player in the market is Netflix Inc., which has surpassed the $10 billion mark in monthly revenue.