Recession Impact Cocooning Will Protect Entertainment Spend
The 20,000 Foot View: Even before the global coronavirus outbreak, faltering confidence in the global economy suggested that a recession may be looming. With stock markets trending down following the upswing in coronavirus cases, the chances of a global recession are rising. Entertainment normally suffers in a recession, but MIDiA’s latest recession impact consumer data indicates that leisure spend may bear the brunt of any downturn in discretionary spend.
- Eating out less and going out less are by far the most widely-cited ways in which consumers would reduce XXX of consumers would eat out less and XXX would go out less, while XXX of regular gig goers would go to fewer concerts
- Should coronavirus trigger a recession, safety concerns would likely increase the skew towards cutting leisure spend rather than entertainment XXX of consumers would downgrade from a music subscription to free, while the same share would cancel one or more video subscriptions
- The prevalence of multiple video subscriptions XXX of video subscribers have more than one video subscription) means the overall subscriber base would reduce less than music
- Apple and Amazon will be well placed to gain subscriber market share in a recession due to their bundling advantage
Companies and brands mentioned in this report: Amazon, Amazon Prime Music, Apple, Apple Music, Apple TV+, Netflix, Spotify
This is the second report in MIDiA’s Recession Impact research series.