Shortly after short-lived optimism and the re-opening of bars and restaurants globally, many are reversing their course of action. Will this have another positive impact on the on the online entertainment industry?
Online researchers began to study the impact of quarantine on entertainment and human behavior and it seems as if they are about to be awarded with plenty more time to continue observing this phenomenon. This comes as the governors of Florida and Texas both announced over the weekend of 27th June 2020 that restrictions on the entertainment industry will be re-enforced with some admitting that re-opening may have been too quick. These states were not the only ones to reverse their decisions: As far abroad as Lisbon, Portugal, measures were re-imposed as coronavirus cases spiked again. The same was the case for Panama.
Entertainment ultimately requires an underlying economy to support it and if the global economy continues to deteriorate, eventually macroeconomic indicators will weight down also on online entertainment. However in the short run, the following industries have been reported to make substantial gains whenever the public was unable to enjoy entertainment at traditional venues:
Companies like Nintendo, Sony, UbiSoft, Betsson in Europe, and Unicash, known as ?????? by their subsidiaries in Asia, have all been outperforming during the pandemic. As much as interactive games were popular during lockdown, so has betting games been rising day by day. Adding to that the addictive nature an lax regulation in places like Malta, it is arguable how healthy this might be for a society on the brink of a major recession.
This, coupled with the rise of video dating apps, have seen a strong spike as people were unable to meet others socially in the usual context – and even those who tend to socialize at work, had to reinvent their game. Blending dating with video, brought along some entertainment factor. Indeed there has been niche providers such as Tinder, adultfriendfinder and Match who has benefited a lot from the situation.
Amazon, iTunes (Apple) and Google Play were all major benefactors of online entertainment, since the users around the web typically use these channels to tap into entertainment options. Effectively, these giants have an arrangement akin to an agency or “franchise” opportunity, where they are guaranteed to receive a certain percentage from the innovators who produced the games and entertainment.
The movie and music industry:
The Webby awards this year has shown just how strong online entertainment was. Post Malone and various mainstream artists were also leading in web channels such as Youtube, which were underpinning factors in nominations for the Webby awards. Reid Hastings and Jeff Bezos were the front-runners in benefiting from this as Netflix and Amazon, respectively, have key positions in the movie supply chain. On the music front, Spotify and iTunes saw formidable growth too.
Adapting like never before?
So many artists are suddenly jumping at the opportunity to get Instagram Verification. A spokesperson at Sitetrail said that “Roughly 120 new artists sought Instagram verification from us during the pandemic as they seek to restart their online channels swiftly to divert client revenue to the online world. We saw a high success rate among artists who were deemed suitably popular and noteworthy by Instagram verifiers”. The industry is rife with competition for eyeballs on the web: ranging from online streaming, to sports and theatre, live events and trade shows – all competing for a space online. Suddenly, acquisition cost per user and online metrics are now the new buzzwords.
Expect another bumper season for anything to do with online entertainment. The previous recession showed that people still spent more on entertainment than on education. If history repeats itself, this will again be the case and investors will no doubt line themselves up for a win with the top supply chains or entertainment providers themselves.