How Widespread Vaccinations Will Affect the Entertainment Sector
The entertainment industry consists of film, print, radio, and television. Like every other industry, the entertainment sector faced a heavy blow in March 2020 when the U.S. declared Covid-19 a pandemic. Many networks had to halt the production of films and tv shows as the actors’ health was a top priority. Despite reasonable concerns regarding health, people in the entertainment sector were stressed about finding ways to pay their bills. Organizations such as PURE Sets were formed soon after the pandemic declaration to get film sets Covid-19 complaint as quickly as possible to resume filming (De Wames). With vaccines becoming widespread, this should further assist the expected resumption of filming, right?
From the supply perspective, mandating vaccines would be the best way for the entertainment sector to resume regular filming to avoid potential lawsuits if actors catch Covid-19 on set (De Wames). Despite this, Hollywood is not pushing for priority access even though specific wealthy individuals are attempting to skip lines (Kiefer). This is because the industry believes that Covid-19 protocols will remain in place for the remainder of 2021 regardless of vaccine rollout. Additionally, it is no secret that the entertainment sector soared at the beginning of the pandemic despite the economy going into recession. With everyone being trapped indoors due to lockdown protocols, people cannot help but spend more time on their devices. Viewership on Netflix soared in March, with an addition of a reported 15.77 million new subscribers, pushing the stock up by 65%. Even Disney+ gained 54.5 million new subscribers in the six months following the pandemic’s announcement (Owens).
However, this type of growth is not sustainable. As vaccine administration becomes widespread and all the lockdown restrictions are lifted, different companies’ stock price in the entertainment sector will fall to pre-covid rates at best (Shead). With more people returning to work, consumers will have less time to stay in and go on streaming websites. Even if they aren’t busy with their jobs, it is safe to assume that people would prioritise their time going out and socialising instead of staying in and watching movies. As a young adult, I can say that my generation will prefer to go out and catch up on all the college experiences that we’ve missed out on during this past year; socially distanced or virtual hanging out is not the same as seeing your close ones in person. Since we have been deprived of social interactions for a year, we will go over and beyond to take advantage of the missed time after everyone is vaccinated. If not for regular socialising, people will also try to use their free time to travel and go on vacations. Due to these factors, the entertainment sector will possibly take a dip in May, especially because Biden is pushing for everyone to be vaccinated by then.
Written by Aneri Patel.
Edited by Shail Saraiya.
Sources:
Condurat, Alina. “The EU's Initiative to Redress the Effect of COVID-19 on the Entertainment Industry.” The National Law Review, 2021, www.natlawreview.com/article/eu-s-initiative-to-redress-effect-covid-19-entertainment-industry.
De Wames, Eric. “Trailblazing The COVID-19 Vaccine Mandate: Will The Entertainment Industry Take Up The Gauntlet?” Forbes, Forbes Magazine, 2 Mar. 2021, www.forbes.com/sites/legalentertainment/2021/03/02/trailblazing-the-covid-19-vaccine-mandate-will-the-entertainment-industry-take-up-the-gauntlet/?sh=512668f46d48.
EntertainmentStrategyGuy. “The Impacts of Pfizer's Vaccine on the Entertainment Industry: Most Important Story of the Week – 13 Nov 20.” Entertainment Strategy Guy, 19 Nov. 2020, entertainmentstrategyguy.com/2020/11/14/the-impacts-of-pfizers-vaccine-on-the-entertainment-industry-most-important-story-of-the-week-13-nov-20/.
Healy, Will. “The Coronavirus Vaccine Is a Negative for Netflix Stock for This Reason.” The Motley Fool, The Motley Fool, 11 Nov. 2020, www.fool.com/investing/2020/11/11/the-coronavirus-vaccine-is-a-negative-for-netflix/.
Kiefer, Peter. “Why Hollywood Isn't Lobbying Hard for COVID-19 Vaccines.” The Hollywood Reporter, 8 Jan. 2021, www.hollywoodreporter.com/news/why-hollywood-isnt-lobbying-hard-for-covid-19-vaccines.
Shead, Sam. “Netflix Stock Should Be Avoided If Lockdowns Lift or a Vaccine Arrives, Analyst Says.” CNBC, CNBC, 20 Oct. 2020, www.cnbc.com/2020/10/20/netflix-stock-should-be-avoided-if-lockdowns-lift-or-a-vaccine-arrives.html.
