One of big four accounting organizations in the world, KPMG recently released its report titled “COVID-19: The many shades of a crisis- A media and entertainment sector perspective”. The report discusses the impact of COVID-19 in the Media and Entertainment industry.
As per report, Media consumption over time could dip in the near term due to current environment. The report highlights that due to COVID-19, traditional media could face some challenges in the near to medium term, and there is likely to be a long-term upward shift in the integration of digital technologies into our everyday lives with media and entertainment being an immediate beneficiary.
Mediums like TV, gaming, digital and OTT platforms are seeing seeing consumption growth during lockdown. On the other hand, outdoor consumption models such as films, events, theme parks, are witnessing a dramatic fall with social distancing norms in place.
Speaking on the report, Satya Easwaran, partner and leader – markets enablement, technology, media and telecom (TMT), KPMG in India, said, “The COVID-19 pandemic has resulted in a drastic cut in advertising expenditure across all media. However, with people being homebound, consumption of media and entertainment – and digital media in particular – has seen considerable growth. Post crisis, we anticipate an even greater integration of technology into our everyday lives with a marked digital progression of Indians across socio-economic classes. Monetisation however might remain a challenge in the near term.”
While Girish Menon, partner and leader – media and entertainment, KPMG in India, said, “The COVID-19 experience is likely to result in a long-term upward shift in the integration of digital technologies into our everyday lives, with India’s ‘digital billion’ trajectory likely to accelerate materially. We expect greater affinity to be seen for at-home entertainment with subscription models, cord-shaving and streaming to larger screens seeing exponential pick-up in the near to medium term. Outdoor entertainment options including – films, events, theme parks – particularly in COVID-19 hotspots could see lingering risk aversion even in the medium term. With monetisation, particularly ad-spend, under pressure, the focus for M&E companies in the near to medium term would be on cash management and profit protection with greater technology integration. Organisations might need to be risk focused and innovate existing business models and processes to survive and emerge stronger.”
Download full report here: –