Media and Entertainment
The creative, arts and entertainment sector has witnessed solid growth over the past decade, with the rate of expansion accelerating considerably in the past two years. A sizeable boost has come from the programming and broadcasting subsector, with such success being driven by both domestic and international demand for UK productions.
There remains a divide between different forms of media in terms of their near-term prospects, however. Print media outlets continue to struggle amidst shifting consumer preferences towards digital alternatives, for instance. Turnover in the publishing industry has been largely stagnant or declining over the past 10 years.
With the arts and entertainment industry facing a largely similar situation to that of hospitality, considerable risk of long-term damage from the coronavirus crisis lingers. Given that many venues are already facing severe financial difficulty after months without revenue, new restrictions on businesses in the sector may result in closures of a more permanent nature. Meanwhile, the sector may suffer even further if consumers’ discretionary spending falls amidst wider economic uncertainty. Together, these factors bring the risk of widespread structural unemployment for those dependent on the sector unless further state aid is announced.