And the overall loss for the industry is Rs 25,000 says the report on the media and entertainment sector during COVID-19.
The PHD Chamber of Commerce and Industry has released a report on the “Outlook of Media & Entertainment Industry in the COVID Scenario”.
The Chamber acts as a catalyst in the promotion of industry, trade and entrepreneurship. PHD Chamber, through its research-based policy advocacy role.
Here are the key takeaways.
1. New research shows between 80% and 90% of people consume news and entertainment for an average of almost 24 hours during a typical week. On average, under half of the consumers pay for media – 44% for entertainment and only 16% for news.
2. ... The media and entertainment sector is expected to witness a 16% decline in revenue for FY21, due to falling in advertisement and subscription income. The industry would take a hit of around 18% in revenue from advertisements that account for nearly 45% of total income, while the subscription earning that contributes 55% will be relatively resilient with a likely decline of 14%.
3. The overall revenue loss of Rs 25,000 crore for the industry will translate to significantly lower profits for companies despite cost-cutting measures.
4. Overall ad revenue will plummet 18% this fiscal, with the impact varying across segments. In digital, it will continue to grow but at a slower pace.
5. For TV, the impact on ad revenue will also be because of the lack of new content on popular channels and postponement of major sporting events such as the Indian Premier League.
6. The reduction of customs duty on newsprint from 10% to 5%, has provided some relief to magazine and newspaper publishing organizations.
7. The allowance of 100% FDI in the Media and Entertainment industry and an effective hand-holding from the government will definitely keep the show of the Indian Media and Entertainment industry going on.
You can read the entire report here: