Tech trends during the coronavirus pandemic: How companies have profited from the crisis
Tech trends during the coronavirus pandemic: How companies have profited from the crisis
Times are changing. We examine the profiteers of the coronavirus crisis from a technological perspective.
A post by Arnoldus Evan & Hendrik Reitz
Monday, 27 July 2020
If we look at the current situation during the pandemic, with people having to stay at home due to lockdown, we can see that this is having a negative impact on many industrial sectors. In the travel sector, many airlines are suffering because people are cancelling and avoiding flights. In the food sector, we see many restaurants and bakeries being forced to close their premises. Due to restrictions on public gatherings, many shops, gyms, schools and entertainment venues have suddenly had to close, and this is affecting the entire global economy.
However, there are companies that are still making money from this situation and have even profited from it. The first industry to experience a positive impact as a result of people staying at home is the gaming sector.
Gaming Industry
According to Media and Games Invest plc (MGI), there is a rapidly growing number of new online gamers in Europe. In March alone, the data shows a 43 per cent increase in new player registrations compared to January and February.
The type of game people are most often playing during lockdown is the multiplayer game. This is quite understandable, as people are more likely to seek a sense of togetherness, and multiplayer online games can be used effectively to connect with a large number of people.
A gaming company such as Razer recognises that it could benefit from the lockdown situation. Through the “Stay Home and Game On” campaign, Razer aims to demonstrate its support for government guidelines whilst also encouraging its customers to play games. This campaign has been well received and has gained widespread traction within the gaming community, with many people showing their support by purchasing the “Stay Home and Game On” poster and sharing it on social media.
Meanwhile, many gaming fans are also spending more time on video platforms such as Twitch and YouTube to watch live streams of their favourite e-sports competitions for games such as ‘League of Legends’ or ‘Counter-Strike: Global Offensive’. This is because live events have been cancelled, prompting millions of people to turn to virtual events.
Digital Entertainment
Speaking of video platforms, the trend is moving towards digital entertainment as people are advised to stay at home. A study by Global Web Index shows that, compared to March 2020, people are spending even more time in April on digital entertainment such as instant messaging, social media and video streaming. The use of video streaming platforms has grown significantly.
Companies such as Netflix, Hulu, Amazon Prime, Apple TV and Disney Plus have managed to attract a large number of subscribers. Netflix, as the largest streaming provider, had actually anticipated growth of around seven million new subscribers in the first quarter of 2020. However, the new quarterly figures, which the provider has now released, are far more surprising: Netflix gained almost 16 million new subscribers in the first quarter of 2020 alone.
Home Workouts
In the fitness industry, unfortunately, many gyms have had to close due to the pandemic. However, this does not mean that interest in keeping fit is waning. On the contrary, people have been taking greater care of their health and fitness, which could strengthen their immune systems. As a result, many people are working out at home and are even taking up exercise for the first time due to these public health concerns.
A relatively new fitness company founded in 2012 in Silicon Valley, called Peloton, sells exercise bikes fitted with a large screen display. With this equipment, customers can take part in workout classes for a monthly subscription fee. Since the outbreak of the coronavirus, the company has managed to increase its sales by two-thirds to US$524.6 million in the first three months of this year. The number of subscribers has also more than doubled to 886,000. With these positive figures, workout activities are gradually shifting towards digital and more personalised formats.
Video Conferencing
One of the trends helping to sustain the economy is the fact that, despite the lockdown, people are able to work from home. This is largely made possible by video conferencing technology. Whilst many people had already adopted the work-from-home model before the pandemic, almost everyone is now obliged to adapt to this new way of working. The traditional model of working in an office and attending school no longer applies to the current situation. Video conferencing providers such as Zoom and Microsoft are benefiting from this shift in lifestyle, and in the future, there is a very high likelihood that more companies will adopt remote working practices.
Stock Trading
The fintech industry is also experiencing a positive impact as a result of the lockdown. As many people are spending more time on their smartphones, there has been a 55% increase in usage time on finance apps, according to CNBC. CNBC also reports a significant 82 per cent increase in the use of trading apps compared to January. This trend is partly driven by falling share prices worldwide. These low prices are encouraging people to invest in public companies that may still survive this crisis. One possible reason for this trend is the cancellation of many sports leagues, such as the NBA, NFL and many others. People who normally bet on sport currently have no other option but to switch to a different platform, and share trading could be their new pastime.
An online brokerage called eToro, for example, is benefiting from the surge in stock market activity. According to their data, they have observed increasing activity on the app since February this year.
Further reading and recommendations:
Anleihen Finder (2020): Media and Games Invest plc: Number of online gamers rises by 43% during the coronavirus crisis. In: Anleihen Finder. Available at:
Finanzen Net (2020): Business is booming at this gaming company despite the coronavirus pandemic. In: Finanzen.Net. Available at:
Holzki, L.; Kerkmann, C.; Möthe, A. (2020): Computer games are booming during the crisis – but there may be a shortage of new releases. In: Handelsblatt. Available at: https://www.handelsblatt.com/technik/it-internet/corona-epidemie-computerspiele-boomen-in-der-krise-doch-der-nachschub-koennte-ausbleiben/25742030.html
Schuler, M. (2020): Netflix is booming. In: Tagesschau. Available at: https://www.tagesschau.de/wirtschaft/netflix-quartalszahlen-coronavirus-103.html
Hanbury, M. (2020): Peloton reports a 66% increase in sales as the coronavirus keeps consumers working out at home. In: BusinessInsider. Available at: https://www.businessinsider.com/peloton-sales-surge-coronavirus-keeps-consumers-working-out-at-home-2020-5?r=DE&IR=T