What permanent changes in video content distribution will we see in the next 12-24 months?

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COVID-19 has changed the media industry from start to finish, impacting rights owners, production, distribution, advertisers, and consumers. Vertical integration across this value chain, especially in rights, production, and distribution (e.g. Disney, Netflix), is changing the business landscape as these companies are creating competitive moats around their content. A breakdown of expected changes in the creation and distribution of video content include:Rights owners: As the intellectual property owners of video content, rights owners are the least likely to feel an impact from COVID-19. Because they typically earn revenue through license fees and royalties, it is expected that this group will be able to maintain their revenue streams, especially as individuals continue to consume higher levels of content during quarantine. However, this may change if COVID-19 continues to halt production and cancel live events. This has been seen in the sports industry, with many rights owners taking alternative approaches to share their content, such as airing classic games.Production: Because traditional production practices typically require large groups of people, non-traditional methods of production have emerged since the start of COVID-19. This includes an increase in at-home and user-generated content. While production is expected to return to normal as restrictions are lifted, production planning in the future will likely include crisis response measures that allow operations to continue even under restrictions, such as filming with limited crews and implementing social distancing.Distributors: Serving as the bridge between production, advertisers, and consumers, distributors control the channels through which content is delivered, including theatres, TV channels, video-on-demand, e-stores, etc. It is anticipated that there will be an asymmetric impact on this sector, as stay-at-home orders have altered consumer behaviors. Streaming services have witnessed unprecedented growth as more consumers turn to them for entertainment, and this trend is expected to continue. On the other hand, while demand for movie theaters and live experiences will return in a post-COVID-19 world, their share of the market may be changed permanently. This may result in more rights owners and production teams to opt for content to be shared directly to video-on-demand platforms, similar to what Netflix, Hulu, and Amazon have done with their original content.While COVID-19 will eventually end, impacts of the crisis will be felt long after, including in the media and entertainment industry. While only time will tell what the new normal entails, it is expected that each area of the video content value chain will be influenced, but especially regarding rights, production, and distribution.To learn more about Kearney's Communications, Media, and Technology practice, please visit our site here.