LONDON-Streaming services are the only entertainment sector likely to emerge from the coronavirus pandemic unscathed and bigger than before, according to a new report from Ampere Analysis. With a projection of a net loss of $160 billion over the next five years for the entertainment industry, streaming is the only area forecasted to see notable growth.
Ampere notes that the biggest hits will be experienced in 2020 and 2021, with growth slow in the remaining part of its five-year projection period, noting that the majority of sectors in entertainment will suffer a negative impact.
Then there is streaming, which Ampere projects to grow by about 12% in revenue over the next five years, as lockdown/self-isolation practices have accelerated the move toward such services.
PLUS: OTT Market to Reach $167B by 2025
Streaming services are likely to come out on top here as viewers are leaning on streaming content providers heavily, just as a slew of new platforms enter the market, said Guy Bisson, research director at Ampere Analysis. Yes, there will likely be a temporary post-lockdown backlash. But key to the longer-term prospects is the acceleration of consumer behavioral change, which will benefit streamers.
Ampere only has two other sectors avoiding the red in its projection: transactional video, with an estimated 1% growth, and public TV, which it estimates will see no growth.
With COVID-19 adding to what was already a struggling market, pay-TV is projected to see a 4% loss from its previous estimate over the next five years. Ampere says the loss of sports has had a significant impact on pay-TV.
In the advertising sector, Ampere estimates significant losses in 2020 and 2021 before bouncing back in 2022, but at a rate lower than previous forecast levels.
For more information, visit www.ampereanalysis.com.
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LONDON-Streaming services are the only entertainment sector likely to emerge from the coronavirus pandemic unscathed and bigger than before, according to a new report from Ampere Analysis. With a projection of a net loss of $160 billion over the next five years for the entertainment industry, streaming is the only area forecasted to see notable growth.
