COVID-19 | Entertainment and Leisure Industry Impact Assessment

The 20,000 Foot View: The spread of COVID-19, and the responses of industry and governments alike, is unprecedented. It is, however, the restrictions on movement of people along with the response of consumers and investors that is causing the biggest disruption and will have the most impact on entertainment businesses. In this report MIDiA explores the potential near- and mid-term impact of COVID-19 on entertainment businesses, from production through commercial to audience consumption.

Key Insights

  • There are five phases of COVID-19 impact on leisure and entertainment: business as usual; leisure collapse; cocooning; revival; recurrence
  • The cessation of TV and film production, and to some degree music production, will create a gap in the media business supply chain in the mid-term future
  • Media companies will be less impacted in the near-term than the creative talent they engage, many of whom have unpredictable income profiles
  • Cinemas may see a longer-term decline with audiences becoming accustomed to watching new movies at home that are now skipping theatrical release
  • TV sports rights deals face the risk of re-evaluation if shut-downs persist
  • More artists will livestream concerts, creating an opportunity for Facebook, Tencent and YouTube – but this will not be a long-term replacement for concerts
  • Ad spend is likely to be hit in the short to medium term with many advertisers no longer able to sell their products and services to consumers
  • Working from home and not going out will increase the available entertainment time for workers by X%
  • Both traditional TV and video streaming companies will see increased consumption but will face the challenge of a slowdown in new shows to air
  • Music streaming will benefit from the increased available time but if a recession transpires, subscription rates may fall by X%
  • Games consumption is already booming, and gamers will fill the increased available time with more gaming
  • Radio companies will benefit from increased demand for news but will feel the impact of reduced commuting
  • News providers are facing growing demand but will need to sustain audience momentum when the shock fatigue inevitably kicks in
  • TV and film studios could command premium prices for their already-filmed content as the marketplace moves from abundance to scarcity

Companies and brands mentioned in this report:  Activision, AEG, A+E Networks, Alphabet, Amazon, Amazon Music, AMC, AMC Networks, Apple, Apple TV+, the Boston Marathon, Bundesliga, CBS, the CW, Deezer, Disney, Disney+, Dude Perfect, EA, the English Premier League, Euro 2020, Facebook, Fox, Hype House, Instagram, International Olympic Committee, ITV, La Liga, Landr, Live Nation, Major League Baseball, Major League Soccer, the Masters, National Basketball Association, the National Hockey League, Netflix, Nintendo, NBCUniversal, Netflix, Odeon, Pandora, Patreon, Peacock, Pluto TV, Regal, Rugby Union Six Nations, Serie A, Sony, Splice, Spotify, the Television Group, Tencent, TikTok, Vue, ViacomCBS, Warner Bros, Warner Max, YouTube

Charts: 1
Pages: 26
Words: 5,674

Includes Synopsis, PDF, and Slides