“Didn’t COVID-19 decimate the industry?”

The basic answer is, no. It didn’t. While Australian Media revenue has been forecast to fall by 4.46% due to COVID-19, the Australian Entertainment & Media Outlook praised the Australian Media Industry for its resiliency and bounce back due to six drivers of industry change. [1]

1. Acceleration of digital consumption due to COVID-19.

When COVID-19 lockdowns began in Australia, there was an acceleration of digital consumption. Web conferencing technologies such as Zoom and FaceTime became the norm as we sought to connect, interact and escape the box we found ourselves in. With this came an influx of subscriptions and a huge increase in social media use, albeit at the cost of out-of-home media consumption (e.g. cinemas & live gigs).

In this time of restriction, TV, film, books and video games offer us a chance to be mobile. To move around freely in a fictional world in a way that is now impossible in reality. Art connects us to the foreign, the exotic and the impossible – but in our current context, it also connects us to a world where anything is possible. A world out of our grasp for now. – The Importance of Art in the Time of Coronavirus [2]

There are reasons to believe that this trend could remain post-COVID-19 lockdowns as habits and social media dependencies are formed. Whilst this is not a bright and chirpy ideal for the future, it’s not hard to imagine a world where these dependencies continue.

During current pandemic, like many other uncertainties, it is unclear whether this compulsive use of social media is just a ‘phase’ and a coping mechanism or an indication of addictive behavior having mental health implications. – Elsevier Public Health Emergency Collection [3]

2. Consumer revenue overtook advertising revenue during COVID-19 lockdowns.

During the COVID-19 lockdowns, Australia marked an increase in consumers purchasing and subscribing to news, as there was an accelerated desire to be informed from reputable & trusted sources. [4] Of course, this was alongside the absolute behemoth of other subscription packages: Netflix, Stan, Binge, Spotify, Apple TV+, Disney+, YouTube Premium, and Amazon Prime to name a few. As companies faced the physical barriers to shipping their products out to consumers, advertising took a back-seat as the consumer demand for content (en masse) became king and subscription-based models proliferated. During this time, Disney+ doubled its subscriptions [5], Stan’s share of subscribers rose by 2.1 million subscribers [6] and Netflix hit a staggering 182 million total subscribers and $5.76bn revenue. [7] Yeah, we pretty much all watched Tiger King.

These trends aren’t expected to shake. They’re actually anticipated to continue post-COVID-19, as consumers develop relationships with these services, continuing their desire to consume the latest season of their new favourite shows.

3. Increased competition to hold audience attention.

As audiences for online streaming platforms bloated during the lockdown season, it has become more important than ever for advertisers, streamers and content creators to capture and hold onto their newfound audiences. This isn’t possible without increasing production to ensure a robust platter of content is there waiting, ready to be consumed. Many businesses have also shifted, restructured or remodelled their entire business plans to take advantage of new online opportunities. 

Consumers will favour entertainment and media products whose scale affords them the ability to invest in and thus personalise content for its audience. Consumers are willing to pay, but only if the content resonates with them and they can consume as much as they want. [8]

Personally, several of my clients during the COVID lockdown had to reconsider their online services. One client went from hosting in-person Yoga classes to suddenly developing online courses and web-streamed live sessions. This was not unique to my experience. Several companies found themselves caught off-guard and suddenly investing in bulking up their library of content. Which leads nicely onto the next point…

4. Increased investment in content & standard practice.

Businesses are reliant on online connections with their audiences now more than ever. And even still, it may not be enough… But those that don’t at least try, are destined to close their doors.

The lockdowns have also created a reflection for what standard practice looks like. Can a pre-production meeting take place online instead of in-person? Does your set have a COVID Compliance Officer? [9] Can crew members (sometimes even directors and cinematographers…) operate remotely on a production? Can we use new technology like virtual studios to create content? [10] Similarly, arts and entertainment events are going through the same withdrawals… What does an online event look like? How does it function? How can we create a sense of connection with audiences? Events around the world were being cancelled, and rightly so. Now, as a result, there is an investment in deconstructing and rebuilding processes in arts and entertainment.

We need to look at what’s possible, and to reinvent what live events might look like. – Erin Gargan [11]

In the same way, we need to look at all aspects of media production, art and entertainment and reinvent how we operate, produce and present our work to the world. The video below demonstrates how it’s possible to still maintain safety on a film st during COVID-19, allowing advertisements and similar productions to continue.