Implications of COVID-19 on Gaming, Leisure and Entertainment Industry

Abstract

The global entertainment sector is a multibillion-dollar economy whose size surpasses several countries’ annual domestic gross product. Regardless of the significance of this sector, it is often an under-researched branch of the tourism industry. For example, there is barely a study on how the previous epidemics and pandemics affected this critical sector. This study, therefore, investigates the impact of the coronavirus (COVID-19) on entertainment (music, television and special events). Using archival and secondary data from authoritative sources, the study showed that the impact of the pandemic was devastating on the sector, leading to multibillion-dollar losses for global entertainment companies. Global entertainment companies such as Walt Disney World and Box Office suffered massive losses, which forced several companies to furlough employees and executives in the battle for survival and to protect capital. The study also showed that the pandemic disrupted both the demand side and the supply side of business in the entertainment sector, which resulted in cancellations of festivals and film production at a time of surging demand for entertainment. Given the nature of the pandemic, 2020 proved to be a challenging year for many entertainment companies – a situation likely to play out for the next 2–3 years as companies battle to recover. The study recommends a post-pandemic assessment of each segment of the sector to allow it to build a disaster preparedness and management system, which does not seem to be in place at the moment.