Our Senior Director of Innovation, Michael Kammes, recently sat down with our VP of Strategy, Eric Wynalek, our CFO, Gabe Camera and President at First Option Capital, Brandon Ebrahim, to discuss how companies are working to maximize efficiency while decreasing costs in the face of economic uncertainty.
The industry started seeing some pressure in Q2 and Q3 last year, and we began seeing cutbacks in production in Q4.
TV saw a stark drop last year, but a positive 5-year average demonstrates that a lot of content is still being produced.
This category includes stills, student films, documentary short films and music videos.
While we don't want to gloss over these sobering facts, it's important to note that they're not a death knell for the industry but rather another pressure point when considering how you're deploying budget.
The gaming industry saw a similar contraction last year. Looking at each section, you can see that downloaded and boxed PC games grew by 1.8%, but the broader industry dropped.
While this information does not illustrate a rosy picture, it's important to note that 2021 was an anomaly. We see 2022 as a corrective year following the market's two years of lockdown-fueled growth, and while the numbers aren't great, the projections and views in the industry are not as dire as we may think. Some recent wins illustrate this fact.
The main takeaway is that the changes we're seeing are a regression to the mean. The industry is being reconfigured in a way that actually matches spend and consumption. But commerce is still happening, and global content expenditure is projected to increase by 2% over the next year.
In our next installment, we'll discuss how companies are getting more out of less. Don't want to wait? Watch the entire webinar now.
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