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Nielson ratings indicate that there has been a 60% increase in TV consumption over the course of this pandemic. Naturally, with most people working from home, practicing social distancing, and avoiding venturing outside of the safety of their homes, TV and digital media have become the main source of entertainment and comfort for all. Interestingly, it’s not just consumers who have access to OTT subscriptions or smart TVs who have increased their consumption of television. Deloitte’s research indicates that 38% of consumers in America have tried a new subscription service over the last nine months.
It’s important to note that this increase in television consumption comes at the cost of a decrease in other entertainment options, such as going to movie theatres and video game arcades. With the internet bridging the gap between what consumers have access to and what is available to them, people have changed the way they look at entertainment now. Even online gaming, and multiplayer gaming, have seen a surge in popularity.
How has COVID-19 changed the world of entertainment?
Although most businesses have suffered negative impacts during the pandemic, entertainment businesses are seeing a rise in subscriptions and revenue. Some of these business verticals that are thriving during the COVID-19 pandemic include:
Streaming services
One can say, without a doubt, that most consumers turned to streaming services the minute stay-at-home orders were announced in the United States. This is certainly reflected in the revenue and growth of these platforms. When the pandemic was still in its infancy, Wall Street estimated that streaming giant Netflix would gain 7.6 million subscribers. Netflix surpassed their expectations by garnering 15.8 million subscribers, which boosted their net income to $709 million. This is double what they made in 2019.
Similarly, Disney+ has also gained 22 million new subscribers in the last few months, while Amazon Prime is also slated to see a boost in revenue.
As stated earlier, consumers have changed their consumption patterns as far as gaming is concerned, with many people enjoying the social aspect of gaming online and interacting with others. Twitch, a leading platform for gamers to live-stream their journeys, has gained 10% more subscribers during the pandemic. Unlike OTT platforms like Amazon Prime, Netflix, Hulu and Disney, Twitch relies on ad placement for revenue. The increase in subscribers as well as the time they spend on the app will certainly account for higher revenue for Twitch this year.
Cable TV
Oddly, while one may have expected OTT platform subscriptions to rise during the pandemic, we’re also seeing another surprising consequence of increased media consumption. There’s a rise in the number of people who now watch cable TV. Before the pandemic hit the US, cable TV was suffering a slow decline, with younger audiences believing it to be quite old-fashioned. However, most web-series, television series, and movies have been put on pause as far as production and filming is concerned. As a result, in order to satisfy the need for more content, users are turning to cable TV to find something exciting to watch.
This is fairly understandable, especially when you consider the sheer volume of television channels that some of Charter Communication’s packages offer. With the lowest Spectrum TV starting at $44.99 per month, viewers get access to more than 200 channels, free primetime on demand, and even free HD channels. Spectrum also offers curated packages based on the needs of the consumer. For instance, the Sports Package includes channels like ESPN, NBC Golf, NBA TV, MLB Network, and more, so that sports lovers can have their fill of exciting games to watch.
The increase in television consumption can also be attributed to higher levels of experimentation with content. For instance, consumers who only watch certain programs are now forced to take a look at all kinds of different content due to the halt in filming and development. A sports lover, who used to only watch cable TV to catch the latest matches, may now find himself/herself watching more movies and television shows. As a result, consumers have had to update their subscriptions by getting more inclusive packages that give them access to a wider range of content.
High-Speed Internet
High-speed internet services have become the need of the hour, whether it’s working professionals at home who need to be able to access data-heavy files, or gamers who want to connect with their friends online. Most homes have varying needs, which makes having high-bandwidth internet, like Charter Spectrum provides, an absolute must-have. With some members of the family streaming OTT content, and others doing their homework online, many consumers have now upgraded their internet packages to ensure that they have high-speed internet.
Another factor that contributed to the rise in high-speed internet subscriptions is the fact that video calling software and apps are on the rise too. Such apps, like Zoom and Google Meet, require a higher bandwidth to project crystal clear images and good sound quality. Without it, one cannot participate in online meetings, or classroom scenarios. In order to prevent low internet speed from ruining their career or schooling prospects, people have started upgrading their packages.
Gaming
Finally, another entertainment mode that’s seen a lot of popularity during the pandemic is gaming. The gaming industry has seen a 35% increase in new customers, which represents a $1.6 billion increase in terms of revenue. Both software and hardware sales have contributed to this increase, with people now looking for good consoles, gaming laptops, and software that enhances audio and video quality.
As mentioned previously, the appeal of gaming comes from the ability to connect with more people – something that’s been sorely missed during the pandemic.
While it’s difficult to ascertain whether the entertainment industry has been permanently impacted, it’s fair to say that it has flourished in the midst of a pandemic. It is now, more than ever, people need to consume content, play games, and use digital software for work and communication. These behavioral trends probably won’t disappear too easily.
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This content is brought to you by Avani Mehta.
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