Debate has raged as to whether or not we are in a recession, but there is no denying that overall economic conditions have worsened around the world in recent months. The economic slowdown is squeezing corporations and the pressure is being felt in their businesses. Supply chain constraints, price and labor inflation, a higher interest rate environment and general uncertainty about the future are causing industries to pull back on spending.
Amidst the chaos, the focus remains on the consumer – and consumer-facing industries, including media. Consumer spending accounts for 70% of US GDP, and so changes in consumption habits and trends are being closely monitored.
Variety Intelligence Platform’s special report “Media Business in a Bear Market” delves deep into the various ways an economic downturn affects countless aspects of the media and entertainment space, including findings from an exclusive consumer sentiment survey conducted by VIP+ in partnership with the decision intelligence company. Consult in the morning.
Not all recessions are the same, but if history is any indication, entertainment usually holds up well compared to other sectors. However, cracks are forming in parts of the entertainment business. And as is typical in a downturn, advertising has been the first to feel the pain.
With corporate earnings season underway, the tone of media executives has changed dramatically in the second quarter from just a quarter ago. Visibility remains unclear and providing a reliable opinion on the coming quarters has become more difficult than usual.
As the country waits and watches, audience habits are being modified right under our feet. VIP+’s exclusive data throughout this report shows how this is hitting consumers and corporations dealing with economic anxiety amid a media landscape intent on moving forward.