Hello. We are Motion Visual Japan Inc. The coronavirus, which we thought was finally heading towards resolution at the end of the year, has spread rapidly again from February to March. We hope you are all taking care.
Now, we would like to talk about the future of the video production industry from the perspective of a video production company. The COVID-19 pandemic has dramatically changed the video production industry. The scenes in which the video production industry is involved, such as job hunting, corporate PR, and online general meetings, have dramatically increased. Furthermore, the spread of the internet and remote work was already increasing the demand for video content. The impact of the novel coronavirus has accelerated this trend. Also, 5G has begun to be provided since 2020 with the new communication standard. As 5G becomes more widespread, the opportunities to see videos and advertisements will increase more than ever, and the importance of video production companies will further increase.
Video production companies are attracting attention in line with the trend of the times. On the other hand, the impact of the novel coronavirus has significantly changed working styles and production environments. Furthermore, the number of companies entering the video production industry has increased considerably. We will look at the future of the video production industry, which is difficult to foresee due to the overwhelming changes. Reading this blog will not only help you understand which video production companies to collaborate with, but also grasp the general flow of the industry.
How much demand is there in the current video production industry?
We have entered an era where people watch videos not only on YouTube but also on smartphones in many other situations. Furthermore, while previously it was only possible to reach a large audience by appearing on television, we are now in an era where anyone can broadcast. In fact, although it is slightly older data, video viewing, which was about 1 hour and 30 minutes per person per month in 2015, increased to 7 hours in 2019. Moreover, in 2022, with increased demand for staying home due to COVID-19, this trend has likely strengthened even further.
Source: Nielsen "Smartphones Become the Main Device for Internet Use Across All Generations - Nielsen Releases "Digital Trends 2019 H1" Summarizing Digital Media Usage Trends for the First Half of 2019"
This data naturally includes viewing of subscription-based video streaming services like Netflix, but there is no reason for companies struggling to develop sales channels during the COVID-19 pandemic to ignore such a popular distribution channel. In fact, according to information released by CyberAgent, a pioneer of the internet era, the estimated market size of video advertising is projected to reach 506.5 billion yen in 2023.
(Source https://marketimes.jp/the-future-of-video-editing/)
Although this is data released by a single company, it suggests that even a large company like CyberAgent anticipates such a market size. Furthermore, in addition to this trend, we have the rollout of 5G. With 5G, not only is the communication speed simply faster (about 20 times faster than 4G), but it also offers communication performance capable of handling multiple tethered devices without issue. Consequently, the video market is expected to expand further. This is precisely why we see an increase in video production companies, as mentioned earlier.
The Future of the Video Production Industry
However, no matter how prosperous the industry is and how promising its future may be, some companies will inevitably be eliminated. Drone aerial photography was like that before. In its early days, some companies were charging 350,000 yen a day for aerial photography, but eventually, prices were driven down, and photographers and freelancers emerged offering aerial photography for 30,000 yen. However, I think prices have now settled around 100,000 yen. Companies that compete on "pricing" might be fine for short-term relationships, but once they start participating in a race to the bottom, it's clear they will decline no matter how much the market grows. It can end up being a battle of endurance, leading everyone down the path of defeat. Instead, companies that hone their skills or add unique new services will survive now and in the future.
Regarding technology, there are voices from the field expressing concerns about the future prospects of video editors and those involved in video production, suggesting their roles may not last long. However, in reality, as long as the internet and TV broadcasting exist as media, the world of video editing and production will not disappear. Certainly, with the evolution of video technology and advancements in AI, video editing and production, which were once only accessible to a select few technicians (engineers) or knowledgeable individuals, are gradually becoming something "anyone can do." In fact, software and apps are available that make video editing easy on home computers and smartphones.
Of course, video editing at the home/personal level is becoming widespread, but for commercial-level video editing for internet media, manpower is still very much needed.
It's often thought that technological advancements will reduce workload, but this only makes it easier to realize the precise expressions envisioned by creators; it doesn't eliminate the reality that the more creators focus on detail, the greater the workload becomes. Furthermore, when it comes to planning, content conceptualization, and directing on set, we are still far from matching human practical experience. Video production companies that can clearly communicate these advantages to clients, and that constantly strive to improve their skills as creators without resting on their laurels, are the ones that will survive in the future.
How was it? This time, we discussed the future of the video production industry. We hope this will be helpful for companies looking to enter the video production industry, or for everyone who plans to develop video production as part of their public relations activities.
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