The entertainment sector saw a significant shift as a result of the COVID-19 epidemic. The majority of theatres, concert venues, and movie theatres were closed for at minimum a year, and television and movie production was suspended for months, resulting in tens of thousands of job losses and significant financial losses.
Not only were individuals who were directly involved in production impacted, but also those who assist the sector, like caterers, florists, and trucking firms. According to Gene Del Vecchio, an adjunct marketing professor at the USC Marshall Business School and an authority on the entertainment sector, “it also affected workers in sectors that depended on fresh and upgraded trademarks, such as those who work in games, books, and fashion.”
The epidemic has had a variety of negative repercussions on the film industry, but not all of them have been unpleasant. According to Del Vecchio, “consumers stranded at home spurred a significant surge in streaming, as shown by the spectacular increases recorded by both Netflix and Disney+, particularly particular,” as well as a general uptick in video gaming.
Production businesses have turned to all these streaming sites to debut their film slates as many movie theatres are either reopening soon or are still uncertain of their future. All of the 2021 films from one major studio, Warner Bros. Studios, will be available on HBO Max. This raises the question of what the future holds for movie theatres, streaming services, and film studios after the pandemic is over while simultaneously enabling more people to see latest films from the convenience and security of their own homes.
Pandemic consumption patterns are here to stay
The pandemic hastened trends that were already present in the entertainment and media sector before to COVID-19, such as the increasing market domination of digital sales, online streaming, gaming, and user-generated content.
The report claims that even while the sector anticipates a return to some degree of normalcy, purchasing patterns and consumer behaviours developed during the pandemic would stick around.
In the competition for market share, declining industries incurred bigger losses. Print books defied the trend in several markets, although these also included conventional television and home video, newspaper, and consumer magazines.
Streaming is the future
In the competition for market share, declining industries incurred bigger losses. Print books defied the trend in several markets, although these also included conventional television and home video, newspaper, and consumer magazines.
The long-term objective of acquiring and retaining streaming service subscribers will be achieved as a result of more money and labour being invested in streaming services by entertainment firms.
Connectivity is driving growth
The statement that internet connectivity is now a fundamental and necessary utility in both wealthy and developing countries has almost become a commonplace. But it also promotes growth.
Due to the high number of clients who were confined to their homes, internet service providers reported a 60% increase in data usage and a 30% overall increase in data consumption.
A growing number of consumers made investments in fixed broadband internet access each year, bringing the total to 1.1 billion homes, despite the fact that it predicted that smartphone connections would continue to expand globally (from 4.6 billion links in 2020).
With an astounding 26.9% annual rise in projected data consumption, updated connectivity, such as the lengthy 5G technology, is going to go from being desired to being necessary for most of the world.
Live experiences will live on
It goes without saying that the pandemic had a negative impact on live and in-person entertainment, and the public music industry, which was virtually shut down in the majority of the world’s nations, had a loss in income of 74.4% from the previous year.
Drive-in concerts and other workarounds provided some of the experience, but it is widely anticipated – and there is already some evidence of this – that live event demand will increase significantly.
However, because to the uncertainties surrounding future COVID variations and the glaring disparities in vaccination distribution worldwide, care will still be advised.
Cinema’s not dead yet
The epidemic forced a reevaluation of the movie business, which led to a historic 70.4% fall in cinema in 2020.
Mulan was released as a premium digital product by OTT service Disney+ with only a few theatres actually operating. Studios like Warner Bros then followed up with simultaneously stream and theatre releases for films like the most recent Marvel blockbuster Black Widow.
Recover stronger than ever
The first COVID-19 crisis-related disruption forced M&E enterprises to make significant organizational and job loss changes in order to survive. They can develop tactics that will put them in a better advantageous position to be more profitable once the epidemic has passed, though, as they transition from reaction to recovery.
Prosper in the coming era
It is likely that M&E businesses will need to be motivated if they want to move forward with assurance during the recovery phase. But for firms to prosper, it could be necessary to give up on outmoded business models and create new ones that promote growth. Many creators of content receive plaudits for their storied pasts and connections to idealized periods of history. Taking advantage of this crisis will allow us to preserve the best features of the past while also planning for and creating a revitalized industry.
Media and Entertainment reboots and rewrites
Because of the COVID-19 issue, which has prompted consumers to rethink and experiment with how they live, work, and play, strong digital platforms, established direct-to-consumer connections, and cutting-edge content are now more important than ever.
Nothing will return to normalcy for the time being, despite the fact that the reopening of venues will most likely benefit the industry and society as a whole. Long-term goals and operating plans for all M&E organisations should account for a lengthy period of adjustment.
Businesses that rely on real-world experiences and environments will likely face difficulties in reinventing their procedures and information to make them more adaptable and ready for the next crisis. This opens up new possibilities, skills, and experience that can boost resilience while increasing revenue.
Many M&E companies are forced to build a new plane while still using the old one as they respond to the crisis and recover. Additionally, a lot of underlying problems and patterns that businesses previously faced have simply gotten worse as a result of the pandemic. In order to usher in a new era where M&E enterprises may grow and develop, leaders must address these issues. Rarely does one have the opportunity to recreate such an established enterprise. Executives from M&E should grab the opportunity.
