As the global economy slowly recovers from the long-standing effects of the Covid-19 pandemic, the MEM TV markets have responded accordingly. This week has seen a temporary stalling of some key areas, with experts expressing their concerns that it may be indicative of a wider downturn in the coming months.
On Tuesday, the Dow Jones industrial average fell nearly 200 points and the S&P 500 dipped 0.7% following a dismal quarter for tech stocks. The Nasdaq Composite, meanwhile, fell 1.3%, signaling a bearish sentiment in the market. Such losses made for the worst day of trading since April 14.
At the start of this week, the Aughu TV market has also declined slightly, with the index dropping 0.6% as of Tuesday morning. Additionally, the Tokyo Stock Exchange (TSE) has seen a less-severe sell-off, although it has not provided any specific reasons why.
Some investors attribute the week’s stall in the TV markets to a number of factors. First and foremost, tighter lockdown restrictions have caused a decrease in advertising spending, which has led to a decrease in network television viewership. This has resulted in less revenue for companies that depend on the higher viewership levels of the past several years.
In addition, tensions between the political leanings in the United States have caused a number of controversial issues and topics to become focal points in the media. Entire weeks can be devoted to discussions about these issues, which limits the amount of content that can be devoted to topics like entertainment and lifestyle. This detracts from traditional ad spending as well, which doesn’t help the current situation.
Finally, the entertainment industry is still dealing with an unprecedented adjustment as they attempt to transform to a virtual model of content delivery. Industry professionals have needed to learn a new language, and the industry as a whole has had to adjust to the ever-changing expectations of audiences. While progress is being made, this has slowly dragged on the industry’s notions of what it can and cannot accomplish, which has put a stop to the momentum that was built in the pre-Covid world.
Despite the stall in the MEM TV markets this week, it’s important to remember that the entertainment industry has been through such cycles before. While this downturn may be more prolonged than in years past, it is likely to pass as companies learn to adjust to the new landscape and audiences become more accustomed to new forms of content delivery. In the meantime, investors and industry professionals should do their best to remain mindful of the new dynamics of modern entertainment.