Entertainment and the recession How it will be impacted and how it should respond
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.
- 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