Challenges and Solutions of Entertainment Industry post COVID-19 Pandemic
COVID-19 pandemic has triggered mass layoffs in the media and entertainment (M&E) industry. Production of daily sops and movies have completely shot down. This has created an economic crisis in movie theatres, theme parks, plays, on-stage performance, museums, and other external consumption organizations, artists, and workers. Online streaming platforms, over-the-top (OTT), gaming, and other digital medium platforms have become the prime entertainment source for people staying in their homes. Will behavioral changes and locked down impact transform the M&E industry? The article provides insights intothe challenges and solutions of the M&E industry during the COVID-19 pandemic.
Coronavirus has significantly transformed the behavior of people where virtual meetings, online classes, Video callings, social distancing, and work from home have become the new norm of society. This has leveraged increased access to digital and OTT platforms in remote rural and wide urban demographics. Now, people can watch TV ona big screen by broadband internet services to their laptop/digital devices. Coronavirus has psychologically changed the mindset of people to watch virtual media. People may find uneasy to watch cinemas in movie theatres post COVID-19.
Revenue Loss and Mass Layoffs
According to EEMA (Entertainment Management Association), 90% of the entertainment business(1)has canceled by 52.91% of companies. According to Financial Express Report, the film industry has witnessed a great fall of 29.1% which adds up to 1062.4 crores (2) in the first quarter of 2020. Nearly 107 companies have suffered a huge loss of 1 crore. Most of the companies have put 50-80% of layoffs to their employees and daily wage workers. Wide cancellations of events across the world have dipped the businesses of event management companies. Daily wage workers across the media and entertainment industry have faced the brunt of coronavirus outbreak and their work has hampered. It augmented in rapid mode when Indian Film & Television Directors’ Association (IFTDA) has announced to shut down every kind of shooting activities to movies, TV shows, and web series. Daily wage workers need supports from the media industry and the government stimulus package.
Personalized User Experience
Personalized user experience had gained a robust momentum amidst a locked-down and coronavirus outbreak. People have multiple options to choose a variety of digital streaming platforms. Companies can target potential customers by AI’s enhanced accessibility in predicting users’ preferences and choices. Netflix has utilized its machine learning recommendations(3)that made it a top digital streaming platform with 100 million global members worldwide. It also helps the companies to identify which type of content can garner maximum revenues.
Real-Time Streaming& Chatbots
AI-driven solutions help companies to get enhanced insights of instant data. It analyzes the viewers’ experience by real-time customization, packaging, and transmission of content. AI facilitates the media & entertainment industry to garner augmented consumer experience (CX) by enriching ad sales through targeted ad insertions. Chatbots are an essential asset for the media and entertainment (M&E) industry. It enhances entertainment experiences, better customer interactions, providing hassle-free browsing.
The present COVID outbreak has diminished the revenue of the M&E industry. But, it has also opened new opportunities where companies make their plans on OTT platforms. Digital streaming is a core source of entertainment amidst locked down. AI will help you to narrow down consumers’ preferences and choices. AI will assist you to make an augmented plan for digital streaming platforms and garner revenues from ads and content sales.