Extended coronavirus impact on entertainment industry estimated at $160 billion
The impact of COVID-19 on the global entertainment industry will cost $160 billion over the next five years, reports research firm Ampere Analysis. Although segments of the industry have innovated in bringing content to digital formats, the widespread consequences of the novel coronavirus continue to affect key areas crucially. Delivered Thursday May 21, the report projects that the advertising sector will suffer the greatest gross loss while theatrical areas will be hit hardest in terms of revenue. Conversely and unsurprisingly, streaming will be “the big winner” at an estimated 12 percent of additional growth over the five-year period.
“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,” stated the report.
The advertising market, including TV and online, will be impacted the most in the near term and as a whole, estimated to lose a whooping $40 billion of revenue growth in 2021. However, the theatrical sector is set to lose $22.4 billion, down more than 11 percent from previous forecasts—the hardest hit sector relative to its size.
“The interconnected nature of the entertainment value chain means that will have a number of effects in other areas of the value chain…some of which will not be fully felt for several years to come.