Winners and Losers of the "Attention Recession." NewsWire

NewsWire: 7/16/21

• As people venture outside again, media firms are bracing for an “attention recession.” Americans are expected to cut their screen time back to pre-pandemic levels—with the exception of gaming. (The Economist)
• NH: According to MIDIA Research, workers gained 15% more free time during the first year of the pandemic. And that was good news for the home entertainment industry. Comparing Q2 to Q4 2020, average weekly consumption soared for video games (+30%), podcasts/audiobooks (+24%), social media (+15%), videos (+7%), and music (+5%). 

• But as the world begins to reopen, many people are cutting down their screen time. According to Omdia, a global research firm, the average number of streaming services used by Americans dropped from 7.23 in November to 7.06 in April. That’s the first-ever decline. Another research firm, MoffettNathanson, found that while cable viewership rose last year, views in Q2 2021 are down -23% YoY.
• Clearly, this is a result of vaccinations and the summer sun. We are no longer compelled to spend our time indoors and in solitude. And there are better things to do than watch the 40th season of Survivor. 
• But there's one big exception to this decline: video games. Even as people cut their time on YouTube and Facebook, the amount of time they spend gaming is expected to remain the same. Sensor Tower, a provider of app-market insights, reported that in Q1 of this year, there were more gaming app downloads than in any quarter in 2020. Roblox, a platform that allows players to create and share their own games, reported that users logged 10bn hours in Q1 2021. That’s two times more than a year earlier. 
• I have been long on the esports industry for some time. (See “It’s Game On for Esports.”) And I’m not surprised that it's the one form of entertainment that people aren’t cutting back on. Young adults don’t see gaming as just another entertainment option but rather as a lifestyle. (See “Homelanders Favor Esports.”) In contrast, they consume television and podcasts if they have time to spare. 
• Nintendo (NTDOY) is certainly betting on the continued popularity of gaming. The company recently announced it will release a new Switch console, with better graphics and storage. It will cost $350, $50 more than the earlier console. Some analysts believe the improvements aren't worth the higher price. Their opinion has been dinging Nintendo's ticker over the past week. But Nintendo management remains gung-ho, confident that gamers aren't going to dial back their enthusiasm.