The Allianz Risk Barometer 2018 reveals that cyber incidents are a top concern for the entertainment industry with 33% of 39 respondents pointing to the worrisome risk.
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Natural catastrophes with the same 33% of responses occupy the #2 spot since 2017. Political risks and political violence are at #3 with a 31% response. Business interruptions are a new risk in the sector at 28%. The report is published annually by Allianz Global Corporate & Specialty (AGCS).
South African entertainment producers are adjusting their models in line with the shifting consumer preferences. User experience has become a key competitive advantage as businesses in the sector seek to harness technology and data in order to engage and retain users. This reliance on technologically advanced platforms such as live streams, pay per view and on-demand services presents the sector with cyber risks. IT failure, data breaches are the biggest risk in the sector as participants in the sector are now relying on technology to deliver entertainment content.
Natural catastrophes also present the sector with risks similar to cyber incidents. Adverse weather conditions such as floods and heat waves often disrupt filming schedules, concerts and festivals. When filming equipment is hired and charged at an hourly rate, companies incur losses as hours of production are lost. The same losses are incurred in the form of low turnout as adverse weather conditions make it difficult to attend outdoor entertainment events.