People around the world are separated from each other. All countries are stagnant. From the global economy to the household budget, the impact of the coronavirus epidemic is as devastating as it is widespread all over the world. The global entertainment industry, in general, is driven by the growing digitalization and access to online media platforms. In addition, the monotony of hectic life and an increase in disposable income are some other factors offering growth to the global entertainment industry. And, the present days monotony due to worldwide lockdown is nothing hidden from anyone. This has further created an upsurge in the distantly accessible modes of entertainment, creating a partial growth in the entertainment industry.
Talking about the pre COVID-19 scenario, the core factor for the growth of the entertainment industry was the increased adoption of online video streaming, especially Netflix, Amazon Prime and so on. As the number of Chinese investors in Hollywood increased, the increase in multiplex chains and expansion in the outskirts of the city was a factor in the growth of the entertainment industry before the pandemic. However, the inclusion of entertainment industry is not just limited to this aspect. The global entertainment industry includes a variety of entertainment venues such as theater productions, amusement parks, sports, live events, and exhibitions as well.
Now these live events, trade shows, and amusement parks majorly drive the global travel industry. According to the Theme Entertainment Association (TEA), the top 25 amusement parks of the world estimated 233 million attendances in 2016. Among these, the US estimated over 100 million attendances in its 10 theme parks in Florida and California. However, there are some recent activities noticed in the online streaming market that are successfully keeping the viewers engaged.
The best example of this could be seen through Netflix’ launch of a Google Chrome browser extension named- Netflix Party. This simply allows the users to access the video in groups and watch them together giving a sense of virtual connectedness to its users. There is a rising demand for online and on-demand videos from COVID-affected economies, which is acting as a major factor for the sudden growth of the online video streaming industry.
However, the main factors affecting the entertainment industry after the COVID-19 epidemic are the discontinuation of theater products and movie theaters. From TV programs to TV channels and to even newspapers facing closure threats, the global media industry is facing a financial shock that will permanently restructure the way entertainment is consumed all across the globe. The film industry is vulnerable due to the pandemic as it requires a large number of people in a space where production and consumption of production are small.
There are reverberations as well into the artist touring ecosystem. It is a definitely bad year for artist managers and talent agencies because they commission from artist live income. And for those attorneys who are compensated based on a percentage from artist touring activities; these revenue streams are non-existent for a good part of the year. Further, the entertainment industry has a correlation with the travel industry too which again makes it vulnerable to the negative impacts of the pandemic. However, post-2021, the entertainment industry is expected to regain its consumer base and therefore, will project considerable growth in the next upcoming years.
