It’s become clear that the COVID-19 pandemic has had far-reaching implications for many facets of society. Along with bringing anguish and pain to many families, the novel virus also had a massive impact on businesses. Whilst some were pushed to the brink of bankruptcy, others were able to capitalize upon the strange times and register record profits.
In a matter of days, people were forced to change their routines and habits. Whilst the entertainment industry mostly suffered, some services such as $1 minimum deposit casino canada platforms gained thousands of new customers.
In this article, we’re going to detail the variety of ways in which the US Entertainment Industry has been affected by the emergence and spread of COVID-19.
Forced closures had a massive impact upon theaters
In a bid to quickly curb the spread of this potentially deadly virus, governments around the world quickly implemented a whole host of containment measures. Whilst the US was a little slower in implementing these restrictions, businesses that were deemed to be non-essential were hastily shut down. Unfortunately for theaters, they fell into this category and were forced to close their doors on moviegoers.
Unsurprisingly, this had a major impact on theatrical revenues. The total 2020 US theater industry revenue was 11% down on the figure registered in 2019. When you are obligated to shut your doors by the national government, then there is very little that you can do to generate revenue.
Reduction in the amount of TV Shows and Movies being produced
It wasn’t just the theaters themselves that were forced to close due to the pandemic, as production studios themselves also had to temporarily halt proceedings. This resulted in a ‘first of its kind’ phenomenon occurring – fewer TV shows were produced than in the year that preceded it.
It wasn’t TV shows where production ground to a halt. In many cases, major movies had their release dates postponed into 2021, meaning that production companies were left waiting for an extended period of time before they could recoup their investments.
Streaming goes from strength to strength
In many ways, the pandemic served to showcase just how advanced technology has become. Even though physical entertainment premises were closed, people were able to enjoy top-notch entertainment, on-demand, from the comfort of their own homes.
The demand for Netflix absolutely skyrocketed, with the pandemic closures allowing them to cross the 200 million subscriber mark for the very first time. Other streaming services such as Amazon Prime and Disney+ were also boosted by an unprecedented surge in demand for their services.
However, the easing of COVID restrictions has seen the demand for these services taper off, with Netflix’s stock price recently taking a hit.
The ‘Experience Economy’ takes a battering
When the US population is partitioned by demographic, it can be seen that more than 50% of the population either belongs to ‘Millennials’ or ‘Generation Z’. Prior to the emergence of COVID-19, these people were causing a boom in what’s known as the ‘experience economy’. In essence, these people would rather spend their money on going to Coachella than on purchasing designer clothes.
Experiences such as music festivals and the arts were the first to close and the last to reopen during the pandemic. Most of these businesses took a financial pummeling, with those without sufficient cash reserves being forced to close down permanently.
Mercifully, there appears to be light at the end of the tunnel for these activities. Michael Seman, Assistant Professor at Colorado State University, anticipates that there will be a massive post-COVID resurgence in demand for the experience economy. After being locked up for so long, young Americans will have an insatiable appetite to start exploring and living life to the full once more.
Casinos lose big during 2020
COVID mandated closures meant that the US casino industry was dealt a hammer blow in 2020. From Match to May 2020, every single casino in the country was closed, preventing 616,000 permanent employees from attending their jobs. Such is the contribution of the US gambling industry to the economy that the government lost $105 billion in revenue due to closures.
However, trends for the industry have been nothing but positive since the end of 2020. Alongside the reopening of physical casinos, the legalization of online gambling in many US states has led to a booming gambling sector that is going from strength to strength.
The Arts were hit hard
It would not be hyperbolic to state that COVID-19 absolutely decimated the US Arts Sector. More than half of performing artists and musicians lost their jobs, with the average income of American creatives dropping to a measly $14,000.
Many Americans are afraid that the permanent closures of art institutions such as museums and galleries will have far-reaching cultural implications. It was hoped that the victory of Biden/Harris would help renew the efforts to save the sector, but progress has been a lot slower than expected.