Like the rest of the economy and society, the UK Entertainment & Media industry is facing significant disruption from the COVID-19 outbreak. The impacts vary widely between different sub sectors – albeit there are also some benefits/opportunities among the challenges.
Some effects from COVID-19 are being felt by all E&M companies. Measures such as government directives to work from home and the restrictions on travel and public gatherings, are causing workforce and supply chain challenges, while impacting consumer demand and behaviours around media consumption.
But drill down to a sub sector level, and variations in COVID-19’s impacts start to emerge. At the time of writing in early April, the hardest-hit segments are those that monetise social/physical interaction – such as cinema, live music, B2B events and OOH advertising. Demand from advertisers has also waned, impacting sectors more dependent on advertising revenue streams. Meanwhile, elsewhere in the industry, self-isolation has boosted demand for services like OTT streaming and video games, along with internet access and data connectivity.
Although the full effect of the COVID-19 pandemic remains unclear, media fundamentals remain strong, so we expect the UK media industry to return to growth quickly once movement restrictions lift and the economy returns to full capacity.
For our analysis on a potential mid to long term view on the likely impact of COVID-19 on the E&M sub sectors click here.
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