As a member of the press and contributing editor for EventDV Magazine, I have been following the effects of the US recession and the subsequent fall-out on print media. Newspapers appear to be taking the largest hit, with many outlets closing or switching to online only. Magazines have not escaped unscathed and Time Magazine Canada recently ceased operations while EventDV Magazine has wisely switched from a free qualified subscription, to a paid subscription, to combat the effects of lower ad sales.
In my own video production company I have noticed the effects of the economy as two of my most exciting technology clients, video game studio Nexon Publishing and online auction company Ebay Canada, have and are closing their Canadian operations. For me this will result in the loss of annual corporate communication and semi-annual general meeting contracts; and more importantly for the employees, the loss of 800 jobs in an already tough job market.
So overall has this been a tough year for my business and am I experiencing a drop in current and projected sales? Not in the least bit.
There are several of my video production markets that are bucking the trend and are holding their own or even experiencing growth. Amongst those are the performance event markets(dance recitals, cheer, figure skating); conferences and conventions; webcasting; and video transfer services. Some of them are due to innovative pricing structures and a reinvention of the business model to everyone’s benefit; while others are simply experiencing a growth due to environmental and accessibility factors.
I am concerned for those video production companies who are firmly entrenched in fewer and harder hit markets, such as social event videographers (bar mitzvah and wedding videographers), as those markets are experiencing a drops in both demand and price. Their owners’ willingness and abilities to find replacement sources of business is what is going to determine if they can survive this recession intact.
In the mean time I’m making plans to expand my performance event and corporate event video production business into TV show production. The entire TV business model has changed due to a drop in advertising and several Canadian television stations are closing or even being sold for $1 to companies like Shaw Cable. All this creates opportunity, especially for local TV stations who are looking for lost cost content. Keep posted for news on this and other developments.