It also highlights that due to COVID-19, traditional media could face some challenges in the near to medium term.
Consultancy firm KPMG has released a thought leadership report titled ‘COVID-19: The many shades of a crisis - A media and entertainment sector perspective’. It discusses the impact of COVID-19 on the media and entertainment industry. The report highlights that media consumption, over time, has tended to be income inelastic. However, the current environment could result in a dip in media consumption in the near term. The report also foresees key trends across television, print media, films, and OTT platforms during the COVID-19 crisis, along with the recovery time (for the same).
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 daily lives, with media and entertainment being an immediate beneficiary.
Speaking on the ongoing situation, Satya Easwaran, partner and leader - markets enablement, technology, media and telecom (TMT), KPMG in India, says, “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.”
Girish Menon, partner and leader - media and entertainment, KPMG in India, added “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.”
Here is the full report: