The entertainment industry strives to captivate and amuse audiences. Risk-taking is certainly called for in this line of work but it could be difficult to manage. Here are some common risks currently facing the entertainment sector to keep an eye out for. One incident could jeopardize your business’s success, which is why entertainment insurance services and a proper risk management program are essential.
Cyber risk takes on multiple forms in the entertainment industry. Streaming services like Netflix, Hulu and Spotify are reliant on uninterrupted service. A cyber attack that renders those platforms inaccessible could anger advertisers seeking a certain amount of visibility and will certainly frustrate viewers paying a monthly membership.
Theft and leaking of intellectual property are other significant concerns. Hacks and leaking of TV show plots are out there. Cyber thieves have even once stolen large stores of data, which included a full feature film that had yet to be released, private emails between executives that derided colleagues and clients, and financial data including salaries and severance costs. Instances like these may result in a market share loss.
Acts of Violence
Entertainment industry events are vulnerable to violent acts due to the large amount of people gathered in a confined space. Failure to take extra precautions could lead to victims holding event organizers liable for injuries or deaths caused by an attack.
Safety must be top-of-mind for event organizers, but they have had to take greater precautions in recent years as the frequency of attacks seems to escalate. This includes banning large bags, conducting random searches, increasing security presence, and implementing detailed emergency responses. Failure to take these steps could lead to victims holding event organizers liable for injuries or deaths caused by an attack.
New Business Models
Technology advancements have assisted content creators in providing their work directly to consumers across a variety of platforms. User-friendly production software enables high-quality content to be delivered to consumers via social media. Entertainment companies now have to determine how to diversify and compete on smaller scales.
Those with basic technical skills and self-starting ambition can get their creative work in front of an internet audience. You must find new ways to connect with audiences, distribute content, and market talent. Interface directly with consumers via social media posts and push new content directly to streaming services rather than first focusing on physical albums or DVDs.
The success of most entertainment companies is dependent on their stars. If for any reason a star can’t fulfill their duties, production companies have to scramble for a Plan B. Those reasons can encompass everything from sickness, injury or death to pregnancy to arrest to something as simple as getting stuck at the airport.
It’s crucial for entertainment companies to carry entertainment insurance services cover extra expenses associated with executing Plan B, as last-minute plans can introduce other existing risks.
Talent image is just as important as genuine talent (if not more so). A talent’s poor behavior is punished with negative press, which will also reflect on the business.
Entertainment companies regularly contract with third parties and bear responsibility for providing safe work environments and for protecting contractors’ and vendors’ private data. Organizers can also be held liable for any property damage caused by spectators.
About Arroyo Insurance Services
Arroyo Insurance Services was officially established in 1986, but we have roots dating back to before 1950. One of California’s leading client-oriented and independently owned agencies, we have over 140 employees with a combined experience of over 450 years, spread across 11 locations. We are committed to providing the best insurance and risk management services at the most competitive premiums, and backing it with hands-on service tailored to our customers’ needs. For more information on how we can mitigate your risks, contact us today at (877) 220-4769.