The Media & Entertainment sector is facing unprecedented challenges from the spread of COVID-19. Rapid changes in consumer behavior and consumption, stoppages in content production, cancellation of live events and sports, and cuts in advertising spend, are impacting companies across the ecosystem.
Media agencies, many of which were grappling with operational volatility, are struggling to maintain media spend as marketers manage risks and reduce spend rapidly.
Publishers and media companies are benefitting from some marketers seeing the opportunity but face advertising revenue losses. Film and TV producers are under pressure to mitigate impact from delayed release schedules, theatre closures, and production stoppages.
Companies are currently focused on enterprise resiliency and triaging revenue, but will likely need to turn to rapid cost reduction as business models settle into new norms as business models are not on solid foundation. Bright spots across the industry include digital pure-plays (such as video gaming) and other virtualized production capabilities.
