The debate is raging about whether or not we are in a recession, but there is no denying that overall economic conditions have been deteriorating worldwide in recent months. The economic slowdown is squeezing corporations, and the pressure is being felt across their businesses. Supply-chain constraints, price and labor inflation, a higher interest rate environment and overall uncertainty about the future are causing industries to pull back on spending.
Amid the chaos, the focus remains on the consumer — and consumer-facing industries including media. Consumer spending accounts for 70% of US GDP, and thus changes to consumption habits and trends are being closely monitored.
Variety Intelligence Platform’s special report “The Media Business in a Bear Market” digs deep into the various ways an economic contraction impacts countless of the media and entertainment space, including findings from an exclusive consumer sentiment survey conducted by VIP+ in partnership with decision intelligence company Morning Consult.
Not all recessions are the same, but if history is any indication, entertainment usually holds up well compared with other sectors. However, in parts of the entertainment biz, cracks are forming. And as is typical in a downturn, advertising has been first to feel the pain.
With corporate earnings season underway, the tone of media executives has shifted in Q2 versus just a quarter before. Visibility remains blurry, and providing a reliable outlook for future quarters has become more difficult than usual.
As the country waits and watches, audience habits are adjusting right under our feet. VIP+’s exclusive data throughout this report shows how that is hitting consumers and corporations dealing with economic anxiety amid a media landscape intent on hurtling forward.