Media & Entertainment industry could have knock-on effect: says KPMG report
By M4G Bureau - April 14, 2020
Outdoor entertainment particularly in COVID-19 hotspots, will notice a lingering risk aversion even in the medium term.
KPMG releases a report analysing the implications of COVID-19 pandemic on the Media & 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; and also foresees key trends across Television, Print media, Films, OTT platforms during COVID along with the recovery time for the same.
Furthermore, 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.
According to the report, ad-spend pressures will linger on the back of weak economy as well as lower domestic consumption. Meanwhile, digital consumption will witness a rapid incremental growth with India's digital billion trajectory likely to accelerate materially. Similarly, at-home entertainment options such as digital, TV, online gaming will see an upswing as 'lockdown behaviour' results in habit formation. Outdoor entertainment, on the other hand, particularly in COVID-19 hotspots, will notice a lingering risk aversion even in the medium term.
According to Satya Easwaran, partner and leader – markets enablement, technology, media and telecom (TMT), KPMG India, 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," he 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," Girish Menon, partner and leader – media and entertainment, KPMG, India, said.