Well, this is what entertainment industry looks like. From Hollywood to Bollywood & from Multiplexes to Single Screen everything is severely impacted because of the novel Coronavirus. Millions of the workers are jobless & the entire industry is economically hit like never before.
The Primary factors for the growth of the entertainment industry before the COVID-19 pandemic includes the increased adoption of online video streaming especially Netflix, Amazon Prime, among others. Netflix also launched a Google Chrome browser extension named Netflix Party which allows the users to access the video in groups and watch them together.
Global Aspect
It has impacted the entertainment industry in most of the regions including North America, Europe, Asia-Pacific and the rest of the world. Several Hollywood productions are affected due to the outbreak and productions shootings in any of the critical zones including China, US, Italy and South Korea have been restricted to alter schedule, shift locations or shut down entirely. Also, Walt Disney cancelled its European press launch in London. Closed Cinemas around the world can lead a drastic fall in revenue by $17 billion by May'20. Extreme precautions like social distancing & hygiene measures will required once everything is back to normal.Australia
Work on more than 100 TV shows & films has been grounded to halt. The cost of industry-wide shutdown in Australia is estimated to exceed $325 million. However, recently Australian soap Neighbours restarted production with social distancing to protect cast and crew.
Canada
An estimated CAD $2.5 billion (USD $1.8 billion) could be lost from shutdown that lasts until the end of Jun'20 & maybe even beyond that. It is expected to have severe impact on more than 172,000 jobs.
UK
British Film Institute (BFI) has launched targeted relief programmes worth £4.6 million (USD $5.7 million); including £2 million to help independent productions resume filming when measures are lifted, and a £500,000 contribution to a £2.5 million fund to help the industry's self employed and freelancers.
France
Cannes Film Festival, due to take place in May'20; was originally postponed until Jun'20, but now organisers have abandoned the whole idea now. However, they're vowing to explore all contingencies to enable the festival and the lucrative Cannes Film Market to go in some form.
The Bollywood
Bollywood is world's largest film industry by number of feature films produced. Over 500,000 hours of TV content and over 1600 films are produced every year. Interesting thing is that over 90% of this output is conceptualised, shaped and produced in India only. India is expected to be a $100 billion media industry by 2030, with forward looking initiatives like simplification of taxation framework and support to accelerate export of films and games.
The economic slowdown, exacerbated by the COVID-19 pandemic, is set to cull the Indian media and entertainment industry's revenue from ₹1.8 trillion to ₹1.3 trillion. 20% of the workforce will lose their jobs leaving millions unemployed.
Worst Hit Segments in Indian M&E
Above chart indicating that Films, OOH, Radio & Animation are worst hit among all the segments. However; a little jump of 17% in digital & OTT can be seen for FY21 because of digitalisation becoming the new normal. It is expected that Film industry will bounce back with a bang in FY22 recovering the entire loss occurred in FY21 while the digital & OTT will continue to grow more in future.
TV has been the top most source of advertisement income in past followed by Print Media. However; in new normal, Digital & OTT is winning the game by grabbing significant market share out of TV & Print media. Film industry is expected to face more than 60% revenue loss in FY21 in advertisement income too but the same will be recovered in FY22.
Future - The New Normal
Launch of "Google Chrome Extension" i.e. "Netflix Party" by Netflix and now YouTube has unveiled new originals designed for the staying-at-home audience, including Celebrity Substitute where stars and teachers collaborate to engage children in homeschooling. Apple acquired a virtual reality startup "NextVR" that specialises in recording live events like concerts and sports matches to be experienced in VR. Byju is in discussion in acquisition of a virtual simulations startup "LabInApp", that offers lab-like simulations for science students on a mobile app. IBM buys cloud security startup "Spanugo" to boosts its compliance. Cisco is in discussions with Campbell based "BabbleLabs" to improve its Webex audio. Reliance is in discussion to acquire majority stake in "NetMeds"; a hyperlocal drugs delivery startup based in India.
It certainly indicates a whole new digital era that one could have never imagined.
Launch of "Google Chrome Extension" i.e. "Netflix Party" by Netflix and now YouTube has unveiled new originals designed for the staying-at-home audience, including Celebrity Substitute where stars and teachers collaborate to engage children in homeschooling. Apple acquired a virtual reality startup "NextVR" that specialises in recording live events like concerts and sports matches to be experienced in VR. Byju is in discussion in acquisition of a virtual simulations startup "LabInApp", that offers lab-like simulations for science students on a mobile app. IBM buys cloud security startup "Spanugo" to boosts its compliance. Cisco is in discussions with Campbell based "BabbleLabs" to improve its Webex audio. Reliance is in discussion to acquire majority stake in "NetMeds"; a hyperlocal drugs delivery startup based in India.
