No matter what industry it is big or small, local or global, there is some amount of impact that is bound to happen due to this ongoing situation. The exact nature of the impact is still speculative at this stage as foreseeing the impact the industry will try to change strategy (unless the vaccine comes up) and adapt but that does not stop us from calling our shots. Here is my take on the impacts on AV industry and open to suggestions from others
- There will be restrictions on Made in China imports and this may slow down advent of newer AV models in the market. Secondary import sources like Japan and Korea may get popularity but they will end up hiking average prices unless some other measure are adopted. But lower sales may impact RnD budget of some companies resulting in slower releases of newer products.
- A lot of people may be on the move even within the country be it changing jobs or finding a new one and this may increase demand for streaming media services and portable audio devices like headphones, mini amps, etc
- Online AV streaming has already gained popularity and this will foster the spread of higher bandwidth data infrastructure in the form of 5G or fibre optic based cable lines.
- Even if lockdown is lifted, people will prefer going less to public gatherings for a considerable amount of time until vaccine is released or a stronger government assurance takes its place clubbed with social distancing and other safety precautions. This may result in lesser crowds in cinema halls with the possibility of them going into reduced revenue earning and margins with production houses considering online release options.
- Even those families whose job stability or income have not been impacted by the crisis might consider keeping expenses checked for newer AV investments as its not under the items of basic necessity and in most of the cases craved by a single individual of the family and not the entire family
. Quoting Spock (Star Trek), "The needs of many outweigh the needs of the few". I do consider a contradicting theory that people may also consider setting up better home entertainment means (like increase in home fitness products seems inevitable) but whether they will spend the budget is worth watching. - Used AV equipment market may boom, relating this to the slowdown of 2007-08 where used AV market in EU was flooded with excellent gears at very competitive prices due to people selling them off to achieve liquidity in times of distress.
- The exorbitant prices in used media market of older CDs and LPs may finally come down.
- Sale of laptops, tablets, phones with bigger screens, etc that can double up as personal mobile entertainment hub can probably go up
- Concerts and Live Shows are likely to be tele-casted live over youtube or similar streaming channels with sponsor backing but finding sponsors may be challenge in the first place. Related to this, event management companies may consider adding live telecasting offering to their services.
- Sale of moderately priced portable musical instruments which can be learnt / practiced remotely can actually improve with people preferring to adopt stay-at-home hobbies.
