Lower growth within the global entertainment sector is expected to be felt until 2025, according to Ampere Analysis.
The company has revised downwards its forecasts to the sector by $160 million, stating that although the most significant impact will be felt in 2020, growth will be reduced over the next five years.
“There are two ways to look at the loss of value: gross revenue and relative change,” said Guy Bisson, Research Director, Ampere Analysis. “Advertising is hit hardest both near term and overall, but drilling down into entertainment sectors shows that areas like theatrical are hit proportionally harder. The interconnected nature of the entertainment value chain means that will have a number of effects in other areas of the value chain…some of which will not be fully felt for several years to come.”
Pay TV, which has suffered from the loss of sports coverage this season, is forecast to lose significant value in what Ampere describes as a challenging market structurally, representing around 4% of its previously forecast value.
The advertising market across online and TV is the hardest hit sector near term and overall, with almost equal impact in both 2020 and 2021.