Recession Proof
Okay, maybe not quite recession proof, but conventional wisdom holds that entertainment fares better than many industry sectors during a recession. And of course, that is good news for the many individual copyright holders out there plugging away at their craft. But don’t think the entertainment industry will be completely unaffected by the recession, because it definitely will feel the need to scale back and pinch pennies as consumers seek the best bang for their limited bucks. And that leaves certain segments of the industry in a great spot to increase their business, among them DIYers and small indie publishers and music labels.
Because consumers now have a vast array of choices when it comes to their entertainment, they will have the luxury of looking for less expensive options. While everyone likes to point to the rise in movie ticket sales during the depression as hard evidence that people will spend money to “escape” from their troubles, you have to remember that movies were only in movie theaters back then. If Depression-era consumers could have chosen between a 50 cent movie ticket and a nickel video rental, which do you think they would have chosen?
Small entertainment producers have an opportunity to soak up some business from economy minded consumers because their costs are typically lower, the profit margin higher and therefore more room to promote attractive discounts to savings hungry buyers, and adjustments to marketing and sales can be made much more quickly than larger companies can manage.
Indie musicians, self-published authors, small businesses - this is your time to find the silver lining and shine. You’re in this business because you’re a creative person, so let’s get creative!
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