The entertainment industry market

The entertainment industry market

July 2nd - 2020

Entertainment industry growth AMID COVID-19

Entertaining and seeking to disconnect even for a moment from reality is part of life itself, just like basic functions such as breathing, eating, or sleeping. Even in times of economic crisis, people cannot leave out activities that bring them enjoyment. When we talk about the entertainment industry, we can consider countless fun activities in which there is always room for in our budget. The entertainment world has become an augmented world, and today the consumer is no longer limited to just going to the movies, watching TV, reading a book, or listening to a record. He is also allowed to compulsively watch series on Netflix or videos on YouTube, play video games, bet in a virtual casino, build music playlists on Spotify, watch millions of “posts” on Instagram, etc.

Market situation before Covid-19

Before the pandemic hit, advertisers had already started to migrate part of their investment to streaming services. This shows how the entertainment industry was already shifting from traditional media to digital content, directly transmitted to our own homes. This crisis translated to a huge increase in demand from services that were already strong contenders in the industry. As all the live events have been canceled or delayed, the streaming sector is witnessing a significant spike in popularity since people cannot leave their homes. Streaming, now more than ever, has become the global medium of interaction and entertainment.

Market situation after Covid-19

The health crisis of 2020 drove a fundamental transformation in what the world expects from the entertainment sector, in addition to its usual role of being a source of distraction and inspiration. It gave us the chance to forget our worries and offered us something to channel our energy into. It also puts useful information and advice at our fingertips. And we cannot forget that at times it helps us feel that we have done something productive despite being confined to our homes. 

The following 8 fundamental changes show how the Covid-19 pandemic is transforming the entertainment industry and how brands must adapt:

  1. We are experiencing a revival of mass entertainment. In a period of isolation, we have distanced ourselves from personalizing and customizing content and platforms to focus more on the feeling of community.
  2. This is a time for entertainment as an escape route. In times of stress, entertainment plays a fundamental role in transporting us to happier and more pleasant places than our current reality. 
  3. Entertainment is now a social event. Entertainment is now the way we maintain our virtual relationships, by using TV, movies, or video games to connect with the people who matter most to us. 
  4. We go out while we're confined. Creative alternative solutions are a way to continue social life without leaving home. Technology is used to replicate experiences and social contacts that would otherwise be missing.
  5. We value entertainment with a message. People need help and advice in their search for a  new routine for themselves and their families. In times of stress, content works best if you feel clear, amiable, and fun.
  6. We hope that influencers educate and entertain. In a world where influencers have become media organizations in their own right, they are now becoming an important public service by using their platforms to disseminate relevant information.
  7. But we need to disconnect. With so much digital offerings, we become imprisoned in our digital world. There has not been a better time for web pages dedicated to crafts, cooking, home furnishings, and the DIY world in general. These are all examples of areas that we can learn about on the internet then transfer that knowledge into our everyday lives.
  8. The importance of entertaining children. After decades of worrying about the time children spend on digital screens and on the internet, parents are now facing the challenge of homeschooling and keeping them entertained while they have to work themselves. 

 

Why did it happen?

Confinement and social distancing measures have led to the emergence of deliverable digital content as the new “king” of entertainment. The spike in subscribers has been very high in all major sectors of digital entertainment as people needed to find ways to keep entertained during the long weeks of confinement. Streaming sites are certainly the big winners of the crisis (along with a few others such as gaming players). 

Conclusions

In times of crisis, entertainment plays a very important emotional and practical role in the lives of all humans: it creates a sense of community and allows us to maintain a connection with others because it offers us memories and experiences that we can share with others. Confinement and social distance are creating new habits of relationships between humans and we are facing its effects while using streaming, video games, or videoconferences, and documenting these experiences on social networks; the strangeness of our new lives is at unprecedented levels. The companies that better understand what happened and actively adapt to these changes will have an important window of opportunity to offer value to the community that contributes to consolidating their brand and reputation.