Entertainment industry set to suffer $160 billion growth loss over next 5 years
There’s no denying that the entertainment industry has been impacted significantly by COVID-19, with events cancelled, cinemas closed, and millions of people living paycheck to paycheck, it will be a long time before the industry returns to what it was. According to research released by Ampere Analysis, the entertainment industry will suffer $160 billion in lost growth over the next five years, with theatrical exhibition and advertising set to be hit the hardest.
The firm revealed:
“While the biggest impact will be felt in 2020 and throughout 2021, growth will be reduced each year for the duration of the five-year forecast period,”
The advertising industry is set to lose $40 billion of revenue growth in 2020 followed by $43 billion in 2021 but is set to recover in 2022, albeit below previously forecasted levels. The statistics are equally as grim for the smaller theatrical exhibition industry, which is set to lose $24.4 billion over the next five years, experiencing revenue growth 11% below Ampere’s previous forecasts.
Unsurprisingly, due to the extended periods of time spent in lockdown, streaming services are set to be the main beneficiary of the crisis, expected to see a 12% rise in revenue over the five year period. Ampere Analysis attribute this to:
“A huge surge in streaming consumption and new subscriptions, benefiting subscription video-on-demand, broadcaster video-on-demand and other catch-up services,”
But it’s not all bad news for the music industry; in the long term, the industry is set to double in value, according to Goldman Sachs. Due to the continued growth of paid streaming services, new licensing opportunities, positive regulatory developments, and of course an insatiable hunger for live events to return, the investment banking firm projects that global music revenues will reach $142 billion by the end of the decade, up 84% when compared to 2019’s revenue of $77 billion.
Whilst the forecasts are grim for now, there is a light at the end of the tunnel, especially for the music industry. With some festivals already expected to go ahead as early as August, recovery might be quicker than anticipated.
Image Credit: Kappa Futur Festival / Provided by Measure PR