Post-Pandemic Programming Surviving and Thriving in the Recession

The 20,000 Foot View:             caused dislocation and disruption to the global entertainment business. Now, the recession and the prospect of further pandemic peaks have created an unprecedented outlook for entertainment companies. Many of the shifts that occurred during lockdown will define the new market dynamics. The old rulebooks are being rewritten, and new approaches to entertainment business models and experiences will be crucial to move from the holding pattern of ‘survive’ to the growth mode of ‘thrive’. Approaches that worked for decades will no longer work, while new innovations will gain traction in a mid-term market that will necessitate an entirely new approach across all entertainment industries. We term this Post-Pandemic Programming.

Key Insights

• Companies with            to physical interactions were those            likely to have experienced revenue           
• In-home, digital            and services prospered during lockdown
• One of            areas to see strong lockdown            was home improvements: Home Depot            its            2020 revenues increase by            nearly three quarters of the            Disney and Live Nation lost
• Even with            measures in place, many companies            to overspend and/or heavily discount            grow revenue during lockdown
• Music and            streaming subscriptions both proved resilient            lockdown but will be vulnerable            a recession, principally because both            – most of the time            contract free
• Leisure and            companies are banking on consumers            to return to pre-lockdown behaviours            the worst of            is over,            this pent-up demand may take            to manifest as returned consumer           
• With the            outlook shaped by both pandemic            recession cycles, now is the            for entertainment businesses and their            to assess which formats and            models should be prioritised during            coming period and which should            given reduced focus
• Being online            virtual has much less impact            consumer spending than whether the            is contract-free (e.g. streaming) or            whether the consumer is locked            a long-term contract for which            off the balance would be            expense 
• Availability of            free alternatives to paid formats            a key recessionary risk factor
• Business models            formats that have both pandemic            recession risks will be particularly            in the coming period, such            live entertainment, brand activations and            radio
• As margins            consumers will begin to re-manage            allocation of time, money and            to that which matters most            this new normal moving forward

Companies and brands mentioned in this report: AEG, AMC Cinemas, Alphabet, Amazon, Amazon Music, Amazon Prime, America’s Got Talent, Animal Crossing, Apple, Apple Arcade, BTS, Bang Bang Con, Blu-ray, Comcast, Deezer free, Dice.fm, Disney, Disney Land, Disney+, Driift, Eleven Sports, Erykah Badu, Facebook, Home Depot, Live Nation, LiveScore, Maestro, Melody VR, Mulan, NBA, Napster, National Hockey League, Netflix, Nintendo, Pandora, Peacock, Playstation, Playstation Now, Playstation Plus, Pluto TV, Side Door, Sky, Snap Inc., Soundcloud, Spotify free, Stadia, Stagelt, The New York Times, Trolls            Trolls            Tubi, Twitch, Verizon Fios, Xbox, Xbox Game Pass, Xbox Live, YouTube, Zoom