Lockdowns and voluntary social distancing dropped the bottom out of many industries such as restaurants, movie theaters, and live concerts. This was a stark (and blindingly fast) illustration of a phenomenon found in all dynamic economies; as technology and consumer tastes evolve, those left behind face lagging sales and unemployment. Just browse through your favorite movies on VHS, on DVD, at Blockbuster, on Netflix to ponder this phenomenon termed creative destruction. How can an industry combat this? Innovation as defense.
Virtual concerts are a fascinating example of pandemic-fueled innovation which changed the nature of an industry to fit evolving demand. Live, in-person concerts and festivals were among the first casualties of the pandemic, postponing big events like Coachella, Lollapalooza, and SXSW. Each of these typically attracted in the range of 250,000 concert goers. As 2020 wore on, platforms opened for live, virtual, and interactive concert experiences with popular artists who previously had only performed in-person. One of first indications that this was a new kind of entertainment was when the online gaming platform Fortnite partnered with rapper Travis Scott to perform for 12 million live viewers. The viewers could interact as avatars in a virtual metaverse manipulated by the performer. Fortnite recently launched its own concert series with global performers from Egypt, Australia, Brazil, and Japan.1 For artists, virtual platforms offer an opportunity to reach a global audience, unfettered by geographic constraints.