The Entertainment Industry in a Pandemic: Thrive or Throwaway?

The coronavirus is a discussion topic that is as widespread as the virus itself. It came in unexpectedly and is sweeping the world right off its feet. Unfortunately, just as businesses, entrepreneurs, schools, and families have begun adjusting to the pandemic and getting back onto their feet, the second wave is rolling over and knocking some economies again. 

The virus is no stranger; everyone knows about COVID-19. Social distancing is a new world order, and as people are prompted to keep their distance from one another, social events and gatherings continue to be an area of contention. Jobs are threatened now more than ever before, and the global entertainment industry is taking one of the hardest hits. 

The movie industry

Films are a tremendous value creator with global box office revenues totaling over $42 billion in 2019. According to the World Economic Forum, this figure contributed to roughly one-third of the estimated $136 billion for worldwide movie distribution and production. Mass movie production comes with mass job creation. Hollywood alone carries more than 2 million jobs and over 400,000 American businesses. The sudden halt to film production means that thousands could lose their jobs, if they haven't already. 

The Numbers, UK Cinema Association, Statista, World Economic Forum

Will the movie industry thrive after COVID-19? 

The pandemic may have upended the pipeline of film production, but some countries have started production again, adopting new remote-work protocols. The Marvel Studios movies are being filmed in Georgia. This production has become the ultimate test for how the film industry will continue on after the pandemic. 

Cinemas are endangered due to the pandemic and social distancing. A considerable short-term risk is consumer uncertainty towards trusting physical venues again. And while cinemas may be close to closing their doors, video-streaming companies such as Amazon and Netflix are taking advantage of the opportunity. But this cannot be blamed entirely on COVID-19. The movie industry was already seeing a shift before the virus had its effect. Many people were turning away from the movie-going experience to stay at home and stream videos. However, COVID-19 has encouraged more people to stay home.

The music industry

Music artists have been negatively affected by the coronavirus. While many have fallen victim to losing their music careers, some musicians are barely remaining afloat. In contrast, others have cleverly identified workable avenues to engage with their fans and to continue performing. One example is Major Lazer who revived their world tour with a virtual performance.

The music industry is challenging to break into and earning a decent income does not come easily for everyone. Many artists rely solely on live performances. They are not all fortunate enough to afford studio time to produce albums. Even then, the distribution may also be a challenge during a pandemic. Many artists had booked shows, festivals, and other events, and when COVID-19 hit, all the money and time spent on these plans were lost.  

Some artists have been unable to recover and are finding it difficult to earn an income during the lockdown period. Unfortunately, the music industry has started to lose some talented musicians. Even when social gatherings are allowed again in public spaces, the numbers will be capped for a long time. Also, many fans are uncertain of public events. Live musical performances may not be a throwaway all together. However, they will be limited, and perseverance will be critical. 

Will the music industry thrive after COVID-19?

Technology makes streaming possible, and many artists have adopted a virtual presence. Online engagement and performances have become the new reality for many artists, and perhaps a survival of the most technologically fit will become the competitive approach. With virtual performances and online engagements steadily reaching right into fans' homes, the music industry will still grow; however, the income bracket may become lower for the artists themselves. 

Other entertainment venues and events

Theatrical productions, sporting events, casinos, and trade shows all form part of the entertainment industry, and they have all been adversely affected. While social distancing has increased physical space between attendees, it also has limited numbers of people attending public areas and events.

Sporting events continue, and while there may be no fans or only a few, sports have not come to a grinding halt. It is the same for casinos and trade shows. They will continue; however, all these events and gatherings will also incur a severe revenue knock compared to pre-COVID-19. 

Theatrical productions could possibly come to a curtain close since these productions are generally on a small scale. Limited attendees could end theatre all together. Without the right funding for stage production, marketing, props, and costumes could be the end of theatre as we know it.  

The takeaway

At the end of the day, mindset is a huge determining factor. If entertainers are looking at the pandemic negatively, they will not be able to find intuitive ways of continuing with their careers and their passion. If they can find a positive outlook and make the most of a truly challenging situation, then they may discover a new avenue to perform "safely."  

Most of the global entertainment industry will thrive after this pandemic. Christian Simonds (a partner at Reed Smith’s Entertainment and Media) told Fox News that even after all the restrictions are lifted that it is highly likely that the same number of jobs will not return. However, those production companies that have secured the right insurance for their movies and TV shows, are starting to gain some momentum, even with the limited staff. 

Sets may not normalize until 2021 and even so, the theater distribution model for films is a threatened industry with the AMC theater chain already stating that they will no longer carry movies produced by Universal. 

Amidst the uncertainty, at least we can enjoy virtual shows from musicians. The Chuck Brown Foundation is also helping struggling Go-Go bands to get back on their feet.