SINGAPORE – Media OutReach – 9 March 2023 – With the Oscars taking place on March 12, all eyes are on the global entertainment industry. The glamour, revenues and audiences may all be returning post-pandemic, but the movie and live events business has yet to fully recover from the Covid crisis and is having to constantly evolve in a new environment driven by economic, technology and sustainability risk trends, according to insurer Allianz Global Corporate & Specialty (AGCS)’ new outlook for the sector. AGCS is a major player in the global entertainment insurance market and has insured five of the 10 movies nominated in the Oscars’ Best Picture category in 2023, continuing a long tradition of partnership with the film industry that goes back as far as the movies of Charlie Chaplin 100 years ago. “The entertainment industry had a very positive year in 2022 and a welcome recovery is definitely underway, but we are not out of the woods yet,” says Michael Furtschegger, Global Head of Entertainment at AGCS. “In the three years since the coronavirus first hit the headlines, the world has changed. The sector must continue to evolve in line with new technologies, proliferating platforms, and seismic shifts in patterns of consumption, as well as changes in the public mood, particularly among younger generations.” Despite the headwinds, consumers are heading back to their favorite entertainment venues or platforms in encouraging numbers. Global box office receipts hit $25.9bn in 2022, reports Gower Street Analytics, a 27% gain on 2021, but still 35% behind the average for the three years before the pandemic (2017 to 2019). Live music revenue is expected to exceed pre-pandemic levels in 2024, with digital music streaming subscriptions fueling growth in recorded music, where revenues are projected to reach $45.8bn in 2026, up from $36.1bn in 2021, according to PwC. Live theater is also staging a comeback with rising receipts and attendances, while the global sports industry is proving particularly resilient supported by media rights, sponsorship deals, and a calendar of fixed international events and tournaments. The big picture Quality not quantity “We see a move towards quality in film production, but this doesn’t come cheap,” says Wanda Phillips, Head of North America Entertainment Insurance at AGCS. “Businesses need to know they have sufficient insurance cover for sophisticated productions. Where costs increase, so, too do exposures because the costs are higher with each day of shooting, and this could be reflected in any insurance loss.” Getting vigilant about sustainability “Younger generations are particularly concerned about sustainability, and festival organizers are responding to this,” says Furtschegger. “More and more entertainment organizations are committing themselves to sustainability targets to reduce the emissions associated with live tours.” The virtual future Reality and live content are also continuing to grow, facilitated by on-demand services and social media platforms. Virtual reality (VR) is the fastest-growing entertainment and media segment, reports PwC, with global VR growth between 2021 and 2026 expected to bring the segment to $7.6bn. Gaming is forecast to be 85% of total VR revenue by 2026. “As the worlds of gaming, music and entertainment continue to converge, gaming platforms such as Fortnite and Roblox are increasingly serving as entertainment and social hubs, while gaming content is crossing over to social media and streaming platforms,” says Furtschegger. HBO debuted ‘The Last of Us’, a video-game adaptation set in a post-apocalyptic world, in January 2023 to critical acclaim. Meanwhile, video games continue to develop as a spectator sport, with the total number of esports viewers worldwide possibly exceeding 640 million by 2025 according to a recent report. Emerging risks on the scene “Crowds have always carried inherent risks,” adds Kurt Miner, Managing Director, Entertainment, at Allianz Risk Consulting, North America. “Event organizers are now better able to monitor large groups of people and keep them safe, as well as artists, with the use of real-time video monitoring. Safety experts can remotely monitor two or three events, which could each be taking place over 15 acres or more, spotting risks concerns such as blocked exits or damaged barriers. They can also monitor social media to pre-empt gate-rushing and prevent stampedes, sending a security contingent to the location before the situation gets out of hand.” Slips and falls are the most common cause of claims from live-event policies, so organizers should ensure medical staff and transport to local medical facilities are on site. About Allianz Global Corporate & Specialty Our customers are as diverse as business can be, ranging from Fortune Global 500 companies to small businesses. Among them are not only the world’s largest consumer brands, financial institutions, tech companies and the global aviation and shipping industry, but also floating wind farms or Hollywood film productions. They all look to AGCS for smart solutions to, and Worldwide, AGCS operates with its own teams in For more information please visit our website Hashtags: #AGCS #BusinessInsurance #Oscars2023 #Allianz
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Oscars 2023: raising the curtain on the recovery and risks in the entertainment industry
Allianz Global Corporate & Specialty (AGCS) 
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