Recovery Economics Post-Lockdown Innovation
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The 20,000 Foot View: social distancing measures caused unprecedented dislocation to the entertainment economy. With a recession now a question of ‘how bad’ rather than ‘if’, entertainment companies have to adapt their businesses and identify new partners to maximise opportunities in the post-lockdown era. This requires a detailed understanding of how the underlying user-need states of their customers changed during lockdown, how these changes will in turn evolve, and how they can meet this new demand. This report is the first of MIDiA’s Recovery Economics research in which we explain how entertainment businesses can navigate the choppy waters ahead.
Key insights:
- There are key post-lockdown scenarios: Bounce back; back; short-term recession; long-term recession all will be defined by emergence of a new normal
- Lockdown created need states, voided some new and reduced others
- Lockdown revealed vulnerability of entertainment’s boredom dependency audiences consuming ‘good enough’ convenient, back content
- Home-based working mean less commuting, less boredom, lean-back consumption – engagement will passive consumption of consumers are nervous about reengaging in leisure activities, more than are interested in restarting any individual entertainment activity
- MIDiA’s ' coefficient' rates the post-lockdown outlook entertainment across need state, supply consumer confidence and monetisation
- Wellness / live streamed events, audio books kids content score highest, physical sales, live music and live the lowest
- The four of Recovery Economics are: meet need states, adapt to lifestyle maximise consumer confidence, adjust for
- Entertainment companies thus aim to bounce forward back, building new propositions and models for the new normal