The Future of Entertainment Technology: What to Expect

Entertainment technology, driven by AI, AR/VR, big data, cleantech, and biometrics, is shaping a more personalized, immersive, and environmentally conscious future for the industry. Some examples are, AI is pushing creative boundaries by enabling smarter content creation through digital avatars and storytelling. Meanwhile, AR/VR allows users to engage with virtual environments in gaming and live events. On the sustainability front, cleantech is reducing the environmental impact of large-scale events and filming processes. AI-powered hyper-realistic avatars, immersive virtual concerts, and blockchain-enabled decentralized streaming platforms are transforming how entertainment content is produced and consumed.

Why should you read this report?

• Gain in-depth insights into the top 10 technologies impacting entertainment.
• Learn about three practical use cases for each technology.
• Meet 10 innovative startups advancing these technologies.

Key Takeaways

1. Artificial Intelligence (AI)
   • Use Cases:
     • Hyper-realistic Avatar
     • Synthetic Media
     • Multilingual Content
   • Startup to Watch: Mini Studio AI
2. Augmented Reality (AR) & Virtual Reality (VR)
   • Use Cases:
     • High-Resolution Virtual Reality Headsets
     • Interactive Live Experience
     • Immersive Virtual Concerts
   • Startup to Watch: Aria Studios
3. Big Data & Analytics
   • Use Cases:
     • Global Audience Insights for Content
     • Anti-Piracy Watermarking
     • Operational Optimization
   • Startup to Watch: Axiom.bet
4. Blockchain
   • Use Cases:
     • Decentralized Music Streaming Platform
     • Digital Collectibles for Fan Engagement
     • Rights Tracking for Digital Content
   • Startup to Watch: Catheon Gaming
5. CleanTech
   • Use Cases:
     • Sustainable Media Production Solution
     • Clean Air Technology for Studios
     • Energy-Efficient Solutions for Streaming
   • Startup to Watch: APXD
6. Cloud Computing
   • Use Cases:
     • Data-Driven Content Decision Making
     • Collaborative Video Editing Platforms
     • Remote Video Editing and Production
   • Startup to Watch: Return Entertainment
7. Connectivity Technologies
   • Use Cases:
     • Efficient Video Compression for Streaming
     • Low Latency Streaming Solutions
     • Mobile First Streaming Service
   • Startup to Watch: Artemis Music Entertainment
8. Internet of Things (IoT)
   • Use Cases:
     • Personalized Content Experience
     • Interactive Sport Arenas
     • Broadcasting Solutions
   • Startup to Watch: Cinematronic
9. Advanced Robotics
   • Use Cases:
     • Automated Cameras for Live Event Coverage
     • Automated Mobile Video Production Tools
     • Event Broadcasting
   • Startup to Watch: Shift Reality
10. Biometrics
    • Use Cases:
      • Access Verification to Events
      • VIP Access via Facial Recognition
      • Personalized Sports Streaming
    • Startup to Watch: Brainamics

Entertainment Industry FAQs

What is the future of entertainment technology?

The future of entertainment technology lies in immersive and personalized content delivery, driven by advancements in artificial intelligence and machine learning. AI will continue to refine recommendations and user experiences, while AR and VR are expected to redefine interactive media and gaming. Moreover, cloud gaming and streaming services are expected to dominate the landscape, enabling consumers to access high-quality content without the need for specialized hardware. 5G networks will also accelerate the adoption of these technologies by reducing latency and improving bandwidth. This allows for real-time, high-definition streaming and multiplayer gaming experiences.

How We Identify Emerging Technologies & Startups

The data in this report originates from StartUs Insights’ Discovery Platform, covering 4.7 million global startups, scaleups, and technology companies, alongside 20,000 emerging technology trends. Our platform makes startup and technology scouting, trend intelligence, and patent searches more efficient by providing deep insights into the technological ecosystem. Utilizing the trend intelligence feature, we analyze industry-specific technologies for this report, detect patterns and trends, and identify use cases along with the startups advancing these areas. Further details and capabilities are accessible via the website.

10 Emerging Technologies Impacting the Future of Entertainment Technology

1. Artificial Intelligence

AI accelerates content personalization, production efficiency, and audience engagement in the industry. For example, AI improves CGI with real-time rendering for stunning visual effects. Tools like OpenAI’s GPT assist scriptwriters in generating entire scripts. For instance, Netflix uses AI to predict viewer preferences and guide content development based on data-driven insights. In the filming process, AI creates immersive digital environments. Shows like The Mandalorian use AI-powered “Stagecraft” technology to generate dynamic virtual sets in real-time. Some studios also use AI to make movie trailers through analyzing entire films and selecting the most suspenseful scenes.

3 Practical Use Cases of Artificial Intelligence in Entertainment Technology

• Hyper-realistic avatar: Deep learning and GANs, exploiting facial recognition or motion capture, generate hyper-realistic avatars. It allows digital characters to become even more realistic and takes away the necessity of using human actors in some scenes, thus, making the process of shooting less expensive.
• Synthetic media: AI uses GANs and neural networks to create creating virtual performances or deepfakes for images, videos, and audio. These tools can mimic humans.
• Multilingual content: Natural Language Processing (NLP) and machine translation models such as Google’s BERT translate content automatically, enabling global distribution of films, TV shows, and other media in multiple languages. Thus increasing market penetration and reducing the cost of human translation services.

Startup to look for: Mini Studio AI

US-based- Mini Studio AI develops an AI-powered cartoon-making machine that offers a full-stack, comprehensive workflow for creating animated content. The company’s technology integrates custom generative AI models, tailored to specific intellectual properties (IP), using tools like LoRA’s and ComfyUI to meet the unique needs of each project. This enables the production of personalized cartoons and stories for children, as well as for artists and brands seeking to develop their own IPs. The platform turns user inputs, such as drawings, into fully animated characters and narratives. This functionality supports both internal projects, like Mini Studio’s own family-oriented content, and external collaborations with creators. Mini Studio AI’s value lies in its combination of cutting-edge AI technology with storytelling, aiming to democratize creativity and bring imaginative ideas to life across multiple media formats​

2. Augmented Reality (AR) & Virtual Reality (VR)

The entertainment industry adopts AR and VR to create immersive content and accelerate audience engagement. VR allows audiences to become part of the story where they can interact with the environment and influence the narrative. For example, The Under Presents combines live theater and VR to offer narrative experiences. Meanwhile, AR brings layers of interactivity to live concerts. In the Coachella AR stage, festival-goers gets access to digital avatars of the artist or interactive set pieces to enhance the physical environment. Theme parks like Six Flages incorporate VR into roller coasters where riders wear VR headsets to transform the roller coaster experience into futuristic battle.

3 Practical Use Cases of the AR & VR in Entertainment

• High-resolution virtual reality headsets: Higher-resolution VR headsets combined with AI-based rendering techniques offer crystal-clear visual experiences in virtual environments and provide a highly immersive and realistic user experience.
• Interactive live experiences: AR/VR with AI-driven interaction enables users to participate in real-time events without being physically present in them. This allows global participation in events without geographical constraints, enabling a sense of presence for remote attendees and offering new revenue streams through virtual tickets.
• Immersive virtual concerts: VR platforms combined with spatial audio, real-time rendering, and 360-degree video provide immersive concert experiences. Fans can interact with virtual performers or fellow attendees in a virtual space. This creates innovative concert formats that transcend physical venue limitations.

Startup to look for: Aria Studios 

South Korean startup Aria Studios develops virtual entertainment experiences driven by AI and XR technology. Its unique approach combines advanced generative AI with extended reality to craft immersive, interactive storytelling experiences. By integrating custom AI models and XR techniques, Aria enables real-time audience engagement, where users can directly influence the storyline and virtual worlds. The platform includes the seamless fusion of art and technology and allows creators and participants to collaborate on dynamic, evolving content. It builds the next generation of interactive content, making entertainment a participatory experience that enhances creativity while embracing ethical AI use.

3. Big Data & Analytics

Big data and analytics predict audience preferences and enhance content strategy to improve engagement. Recommendation algorithms analyze user behavior, and viewing habits to deliver personalized content recommendation. Music streaming platforms leverages big data to create custom playlists based on the listening habits of millions of users. Content creators also use data analytics to gauge audience relations for audience sentiment analysis to make content adjustments aligned with viewer expectations. Big data allows entertainment companies to deliver highly targeted ads to the right audience at the right time through programmatic advertising. By leveraging vast data, entertainment companies create more personalized experiences with greater accuracy.

3 Practical Use Cases of Big Data & Analytics in the Entertainment

• Global audience insights for content: Big data platforms use machine learning to target specific demographics, and predict future trends. It analyzes massive datasets from streaming platforms, social media, and other sources to understand audience preferences and behaviors.
• Anti-piracy watermarking: Digital watermarking and forensic watermarking track unauthorized distribution by embedding invisible to traceable marks into video or audio files.
• Operational optimization: AI and big data analytics leverages predictive analytics to anticipate bottlenecks and streamline production workflows by automating processes such as content editing, distribution, and archiving

Startup to look for: Axiom.bet

Ukrainian startup Axiom.bet delivers software solutions for the iGaming and entertainment industries. Axiom uses advanced analytics, machine learning, and neural networks to improve conversion rates by analyzing user behavior in real time. The platform offers fraud protection platforms, which use sophisticated algorithms to detect and prevent fraudulent activity with unmatched speed and accuracy. Additionally, Axiom.bet integrates AI-driven tools for personalized player bonuses and risk management systems for sportsbooks, providing operators with real-time insights to manage bets. The startup maximizes both operational performance and customer engagement.

4. Blockchain

Blockchain allows creators to distribute content directly to consumers. This peer-to-peer (P2P) model allows creators to retain a larger share of the profits. Platforms like Audius for music leverages blockchain-based networks to allow creators to reach their audiences. This technology creates ensures that ownership and IP rights are immutable recorded on a public ledger without any disputes over content ownerships. Blockchain also opened new revenue streams for creators through NFTs. Musicians like Kings of Leon successfully sold music albums as NFTs. Block decentralizes control and creates transparency in the industry.

3 Practical Use Cases of Blockchain in the Entertainment

• Decentralized music streaming platform: It creates decentralized platforms to distribute music directly to fans. Here, payments are processed through cryptocurrencies or blockchain-based tokens.
• Digital collectibles for fan engagement: Non-fungible tokens (NFTs) represent ownership of digital collectibles, such as exclusive artwork, music, or videos.
• Rights tracking for digital content: Smart contracts automatically track ownership and rights usage for digital content. This ensures fair distribution of royalties and offer transparency and real-time tracking of rights and payments.

Startup to look for: Catheon Gaming

Australian startup Catheon Gaming develops a decentralized gaming ecosystem to support Web3 game development, publishing, and distribution. Through its Catheon Gaming Center (CGC) and Catheon Labs, the company offers end-to-end services, including game advisory, token integration, and metaverse development. The platform helps traditional developers transition into Web3 by offering tools and market access. Catheon empowers developers to reach broader audiences and create next-generation gaming experiences.

5. CleanTech

Entertainment venues integrate cleantech by adopting energy-efficient systems including LED lighting, solar panels, and energy management software. Music festivals are also embracing sustainability by committing to zero-waste policies. For instance, compostable packaging, waste separation, and elimination of single-use plastics. Moreover, studios are increasingly adopt green building standards for set constructions using sustainable timber, non-toxic paints and recycled fabrics.  Cleantech helps the entertainment industry lower costs, improve sustainability, and meet environmental goals, driving a green transformation in Hollywood.

3 Practical Use Cases of Cleantech in the Entertainment

• Sustainable media production solution: Cleantech solutions such as renewable energy sources, LED lighting, and waste reduction techniques are used to minimize the environmental impact of film and TV production.
• Clean air technology for studios: Air filtration systems and green building technologies ensure that studios maintain air quality while reducing energy consumption. This promotes healthier working conditions, reduces energy consumption, and minimizes environmental impact.
• Energy efficient solutions for streaming: Technologies like AI-driven video compression and edge computing reduce energy consumption in content delivery networks (CDNs) for streaming services. It lowers the energy footprint of video streaming services and reduces operational costs while maintaining high-quality content delivery.

Startup to look for: APXD

Estonia-based startup, APXD offers an eco-focused survival game that educates players on environmental sustainability while providing engaging gameplay. The game uses a play-to-earn model. Users can collect money by building eco-smart cities and coping with actual environmental problems. At the same time, they receive full gaming asset ownership, as APXD’s choices have been backed by blockchain and NFTs. The game encourages critical thinking and collaboration as players tackle pollution and sustainability issues. APXD empowers younger generations to become eco-champions, blending entertainment with environmental education.

6. Cloud Computing

The entertainment industry adopts cloud computing for rising data storage needs, remote collaboration, and flexible content delivery. Cloud platforms offer global content delivery networks for reliable distribution of media across multiple devices and geographies. This ensures that the buffering times are minimal. This technology also encourages real-time collaboration among creators. For example, Avid and Frame.io allow multiple editors to work on the same media files simultaneously. The major benefit of cloud solutions is that they are highly scalable. This means that companies adjust their computing resources based on demand.

3 Practical Use Cases of Cloud Computing in the Entertainment

• Data-driven content decision-making- Cloud-based data analytics platforms process user behavior, preferences, and content performance data, helping studios make more informed decisions about future productions.
• Collaborative video editing platforms: Cloud-based tools allow multiple editors to work on video projects from different locations in real-time, with changes synced across devices instantly. Thus speeding up production times and enabling collaboration from anywhere.
• Remote video editing and production: Cloud platforms provide remote access to editing and production tools, allowing teams to work on content from any location. It offers flexibility in production, reduces the need for physical travel, and ensures faster turnaround times for media projects.

Startup to look for: Return Entertainment

Finnish startup Return Entertainment offers a cloud-native platform that enables players to use their smartphones as controllers. By scanning a simple QR code on their TV, players are instantly immersed in games like Rivals Arena, a card battler set in a futuristic environment designed for both solo and multiplayer experiences. The platform operates on a latency-friendly, buffered stream, ensuring smooth and responsive gameplay without requiring high-speed internet or traditional controllers. The platform can extend gaming beyond the TV screen, offering a multi-screen experience that enhances player interaction and supports innovative game concepts. Return Entertainment opens up new revenue streams for smart TV gaming by democratizing big-screen gaming. Thus making it accessible to a wider audience and paving the way for the future of interactive entertainment on smart TVs.

7. Connectivity Technologies

The entertainment industry faces challenges like fragmented content delivery, real-time audience engagement, and collaboration across teams. With faster internet speeds and low-latency connections, users experience more immersive and responsive content. Connectivity technologies kike 5G transform the stadium experience. It enables the development of smart stadiums where they can stream live content and engage with interactive in-game experiences. Edge computing reduces latency by processing data closer to the users’s location rather than sending it to a centralized server. Therefore, ensuring smoother and faster content delivery.

3 Practical Use Cases of Cloud Computing in the Entertainment

• Efficient video compression for streaming: AI-driven video compression algorithms like H.265 or VP9 reduce file sizes without sacrificing video quality, improving streaming performance and thus lowering streaming costs.
• Low latency streaming solutions: Technologies like WebRTC (real-time communication protocol) reduce streaming delays, enabling smoother live broadcasts and interactive experiences. It enhances the viewer experience during live events, reduces buffering, and improves engagement in real-time streams.
• Mobile first streaming service: Adaptive bitrate streaming and 5G connectivity ensure optimal performance of mobile streaming services, adapting video quality to network conditions. It increases accessibility for users on mobile devices, ensures seamless playback, and supports high-quality video on mobile networks.

Startup to look for: Artemis Music Entertainment

US-based- Artemis Space Network develops a space-based platform that integrates NFT music and artwork with blockchain technology. Its system allows creators to transmit digital assets, such as music and visual art, to and from space, where they orbit the Earth aboard the International Space Station. By combining spaceflight and blockchain, the platform authenticates and preserves the uniqueness of these creative works, offering artists and their communities the ability to connect their creations to the inspiration of space. Its “smart art” technology embeds smart contracts into these space-flown digital assets, enabling creators to retain ownership and manage royalty rights for future transactions. The platform’s purpose is to provide artists, curators, and brands with a groundbreaking way to design space missions and monetize their art through innovative means. Artemis expands the boundaries of both creativity and commercial opportunity in the digital age.

8. Internet of Things

IoT creates immersive experiences, real-time audience engagement, and content delivery optimization. IoT devices enable entertainment platforms to deliver personalized content. For example, Netflix recommends TV shows based on user’s historical preferences. This technology also allows for context-aware entertainment where content adjusts dynamically based on the environment. In Film and TV production, IoT-enabled cameras, lighting systems, and sound equipment are remotely controlled. This allows directors to fine-tune production settings without manually adjusting equipment. IoT also helps in reducing environmental footprints by optimizing energy usage in production studios, theatres, and live venues. For example, smart lighting and climate control systems that adjust based on occupancy or activity levels.

3 Practical Use Cases of the Internet of Things in Entertainment

• Personalized Content Experience: IoT-enabled wearables track attendee preferences and reactions, offering personalized content, such as lighting or song choices, during concerts. Therefore, enhances fan engagement through personalized experiences, increases fan loyalty, and offers new monetization opportunities via tailored merchandise or experiences.
• Interactive Sport Arenas: IoT devices integrated into stadiums offer interactive features like smart seats, personalized fan displays, or interactive food and beverage ordering systems.
• Broadcasting Solutions: IoT-enabled cameras and sensors provide real-time data to enhance live broadcasting, including instant replays, player statistics, and live performance data. It provides deeper engagement for viewers, enables real-time interaction, and improves broadcasting quality with minimal manual intervention.

Startup to look for: Cinematronic

Cinematronic, a Denmark-based start-up,  develops an innovative entertainment technology platform that enhances audiovisual experiences by adapting content based on real-time biometric data. The company’s core products include an interactive, adaptive media system and a biometric quality assurance solution. Using biosensors, the system monitors users’ psychophysiological reactions—such as heart rate and galvanic skin responses—to gauge emotional responses. This allows content to be automatically adjusted to match the viewer’s emotional state, ensuring a continuously engaging experience. Additionally, the platform’s quality assurance system integrates biometric data into the creative production process to fine-tune the creator’s work based on detailed user insights before finalizing it. Moreover, Cinematronic revolutionizes the way media is experienced, providing content creators with tools to deliver more personalized and emotionally resonant entertainment while optimizing production efficiency

9. Advanced Robotics

Robotics is the future of entertainment that improves safety and delivers more dynamic and engaging experiences for audiences. For instance, robotics plays a role in cinematography by providing more precise, repeatable, and complex camera movements. Robotic camera rigs allow filmmakers to capture shots with millimeter accuracy and fluidity. Similarly, the technology also enhances VFX by capturing complex action scenes efficiently. Motion-controlled robots synchronize camera movements with CGI elements to deliver such quality content. Advanced animatronics that mimic human or animal movement are used to create realistic characters, creatures, and special effects. In live performance, robotics are integrated into production stages to control lights, rigs, and props with precisions.

3 Practical Use Cases of Robotics in Entertainment

• Automated cameras for live event coverage: AI-driven robotic cameras track motion and capture video autonomously during live events like sports, concerts, or theater performances.
• Automated mobile video production tools: Mobile robots equipped with cameras and AI-powered tools enable the autonomous filming of live events and video content in real time.
• Event broadcasting: Robotic systems handle broadcasting tasks such as camera switching, audio mixing, and lighting adjustments autonomously. It ensures smooth, uninterrupted broadcasting with fewer operators, reduces costs, and improves the scalability of event coverage.

Startup to look for: Shift Reality 

Canadian startup- Shift Reality develops robots and immersive content by merging machine technology with virtual reality. The company’s proprietary, patent-pending holonomic technology provides users with full freedom of movement in VR environments, allowing seamless interaction between real-world robotic reactions and virtual experiences. This technology creates highly engaging, inclusive, and social experiences, placing human interaction at the center. By blending real-world energy with the virtual, Shift Reality aims to transform entertainment, creating new levels of immersive fun for global communities

10. Biometrics

Biometrics is creating more personalized and immersive entertainment experiences. For example, facial recognition and voice identifications create personalized content recommendations by analyzing user data. Emotional-driven content gauges in biometric systems such as analyzing facial expressions, heart rate, or skin conductance to measure the viewing experience. Biometrics also secures access to streaming platforms and gaming services and reduces the friction of remembering multiple passwords. In cinemas, this technology tracks audience relations to movie scenes determining what engaged them and what not!

3 Practical Use Cases of Biometrics in Entertainment

• Access verification to events: Facial recognition or fingerprint scanning systems verify attendee identities for secure access to events or venues thus increasing security, speeding up entry processes, and reducing the risk of ticket fraud.
• VIP access via facial recognition: VIP attendees are identified via facial recognition at entry points, allowing for personalized services like exclusive seating or backstage access.
• Personalized sports streaming: Wearable devices or cameras collect biometric data from viewers, such as heart rate or attention, to tailor the content being streamed. It increases viewer engagement through personalized content, improves the overall viewing experience, and enhances real-time interaction with the content.

Startup to look for: Brainamics

Brainamics, a German startup, integrates Electroencephalogram (EEG) technology into its gaming suite to provide real-time insights into player emotions, linking them directly to in-game events. The company’s unique framework extracts emotional responses from the brain using EEG signals, which are processed through machine learning algorithms to help game developers analyze the psychological aspects of gameplay. This technology allows for benchmarking game engagement against neurological and genre-specific patterns, offering a precise comparison with industry standards. By combining data from EEG, eye-tracking, and custom surveys, Brainamics delivers expert-driven analysis and reports that pinpoint emotional spikes, ups and downs, and outliers, highlighting moments of high or low engagement. With a pool of high-caliber participants tailored to each game’s target audience, Brainamics enables developers to optimize the user experience and enhance gameplay engagement.

Outlook for the Entertainment Industry

Patents & Grants

The entertainment industry demonstrates a strong emphasis on innovation, as evidenced by the issuance of over 100,000 patents and the awarding of 6,300 grants. This extensive intellectual property portfolio reflects ongoing advancements in media technology, content creation, and distribution methods, positioning the sector for continuous technological growth.

For more actionable insights, download our free Entertainment Innovation Report.

Investment Landscape

Leading investors such as Techstars, Animoca Brands, Google for Startups, Griffin Gaming Partners, and Hype Sports shape the entertainment industry’s financial ecosystem. Funding is concentrated in seed, early-stage VC/Series A, accelerator/incubator, pre-seed, and angel rounds, with an average investment of USD 12.9 million per round, driving innovation across diverse media platforms.

Global Footprint

The entertainment industry supports a global workforce of over 29 million, with a significant presence in the USA, UK, India, Germany, and Canada. Key city hubs such as New York City, London, Los Angeles, San Francisco, and Sydney serve as epicenters for creative and technological developments in the sector, fueling its international expansion.

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