Nelson Granados Authors Article on Impacts to the Media and Entertainment Industry for Forbes
The pandemic has not only changed normal life but has completely shut down the media and entertainment ecosystems across the globe. At the same time, consumption of media and home entertainment have seen an increase as lockdown mandates have been extended. The direct impact is somewhat predictable based on the dire picture of empty stadiums, theaters, stages, and other venues. Nelson Granados estimates, in the U.S., a 15 percent contraction of the media and entertainment industry from the direct effect of the suspended economy. The indirect effect could possibly see an industry contraction of 20-25 percent.
Once lockdowns are lifted, the risk of contagion may make people reluctant to attend live events. In addition, the unemployment levels in the U.S. have reached the levels of the great depression and this fear could have impacts on consumer spending. Many consumers may choose to reduce or eliminate discretionary spending in the media and entertainment industry. However, there are a few silver linings. In the short-term, consumers are glued to their mobile devices and screens at home, leading to substantial increases in consumption. In the U.S., video gaming and video streaming activity has doubled and will most likely continue while the world shelters in place. Read more.