Global entertainment industry put on pause in response to COVID-19
From China to Hollywood, corporations try to keep business afloat despite the abrupt cancellation of this season’s upcoming calendar of festivals, movie releases and concert tours.
By Julianna Coyle
The COVID-19 pandemic has forced global leaders to shut down entire countries in an attempt to “flatten the curve” of the virus’ spread. This wide scale response was not immediate, but the entertainment industry felt its impact instantly.
The global entertainment industry has been severely affected by closures and sanctions placed throughout Europe, America and Asia. Following the lockdown in Wuhan, China, major corporations in the industry began to postpone or cancel large events and gatherings set to occur in the spring and summer. The effects of this industry-wide pause has been felt both socially and economically.
An extensive list of cancelled film premieres, postponed music festivals and interrupted production schedules compiled by Vox details the essential shut down of all business for the foreseeable future. Broadway has shut its doors, Coachella was pushed to October and Disney has postponed its movie releases alongside the closing of its international parks. While ticket holders are disappointed in these decisions, it will be the corporations that take the hardest hit.
The ripple effect of the uncertain economic state following COVID-19 has industry officials worried. The decision to shut down production and cancel events will have a tremendous impact on budgeting and planning following the entertainment industry’s resurgence after quarantine. According to Variety Magazine, the annual timetables of the industry’s key players will be difficult to redraw. Smaller corporations could lose support, large companies may scale back on employment and the demand for venue availability as events scramble to find new dates will become a game of Monopoly.
With “Hollywood on hold,” the lack of revenue during the industry’s peak season has left many workers living paycheck-to-paycheck in the dark. Film crews, personal assistants and venue staff are seeking help from a number of nonprofits to help offset the immediate need to pay expenses with a lack of income.
Many celebrities are using their platform to speak out about the impact of COVID-19 and the importance of social distancing. Actor Tom Hanks, news anchor Chris Cuomo and reality star Colton Underwood have all publicly announced positive tests for the coronavirus. These messages have given viewers and fans insight on the reality of the disease and its widespread impact, a wake up call for many citizens and leaders who downplayed the severity of its threat to the American public.
On a smaller scale, internet influencers are navigating a new way of doing business using content creation and distribution through social media platforms like Instagram and YouTube. However, brand deals and company sponsorships have seen a sharp decline. As Business Insider reports, influencers benefitting the most from the impact of COVID-19 include direct-to-consumer creators, namely at-home fitness instructors.
The entertainment industry is an inherently global business, making its sudden halt felt throughout the world. Moving forward, the industry can expect to see a surge as people return to “normal life,” but there will be many challenges.
