Entertainment and the recession How it will be impacted and how it should respond
Our clients have full access to all of our reports. Clients can log in to read this report. Click here to become a client. Alternatively, you can purchase this individual report.
20,000 foot view: The world is facing a period of change and disruption that is unprecedented in modern times. With so many interconnected dynamics across consumer spending, economic cycles, the climate, and even geo-politics, consumer behaviours and spending will undoubtedly be impacted. This means that entertainment companies will be impacted also. But entertainment has the opportunity to play a unique role in these troubled times. It will require innovation and strategic agility, but done right, it could even see some forms of entertainment being – whisper it quietly – recession proof.
Key insights
- The ad is slowing: leading digital-ad company grew by between 2020 and but it was down sharply 2022 and only up by (QoQ) in 2022
- Major music and leading digital service providers saw music streaming revenue follow broadly similar decline in growth 2021 and 2022, with 2022 less than a third of 2021 rate
- Video subscription is also slowing, with Netflix’s (YoY) quarterly subscription video on (SVOD) revenue growth going from 2021 to in 2022, while SVOD growth went from to
- The entertainment will be reshaped by multiple including attention inflation, the splintering culture, scenes and identity, lean the creator economy, post-peak growth, rediscovery
- MIDiA’s C.R.E.A.T.E. manifesto presents a framework forinnovation growth in the coming new for digital entertainment
Companies and brands mentioned in this report: Alphabet, Amazon, Disney, Meta, NetEase Cloud Music, Netflix, Snap, Sony Music Group, Spotify, Tencent Music Entertainment, Twitter, Universal Music Group, Warner Music Group