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 and going out less are far the most widely-cited ways which consumers would reduce spend of consumers would eat out less and would go out less, while of regular gig goers would go to fewer concerts
- Should coronavirus a recession, safety concerns would increase the skew towards cutting spend rather than entertainment spend of consumers would downgrade from a music subscription to free, while the same share would cancel one or more video subscriptions
- The prevalence multiple video subscriptions of video have more than one video means the overall subscriber base reduce less than music
- Apple and will be well placed to subscriber market share in a 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.