“According to a survey, the media and entertainment industry, which was badly affected by the disruptions caused by the COVID-19 pandemic, is expected to recover to reach a revenue of Rs 1,86,600 crore (US$ 25.32 billion) in 2021-22, owing to the acceleration of digital adoption among users across geographies.
KPMG in India Partner and Head (Media and Entertainment), Mr Girish Menon stated that the sector should recover and post a 33 per cent growth in 2021-22, following a contraction of 20 per cent in 2020-21, which still implies a loss of around two years of growth, said
He quoted the ‘A year off script: Time for resilience’ KPMG Media and Entertainment (M&E) report, which explores the performance of the M&E sector during a particularly challenging period.
He stated that India’s continued economic growth and the uniform acceleration of digital adoption by users across geographies, are the two areas that offer encouragement.
He added, ‘As per our revised estimates, India could be home to a billion digital users by 2028 rather than the earlier projected 2030 timeline’.
Menon added that due to the experience of the lockout, there have been many systemic improvements to digital behaviour, resulting in a new homogeneity between users. It is our hope that many of these improvements will translate inside the country into a more democratic and sophisticated digital citizen.’ The overall revenue of the industry during 2019-20 was Rs 1,75,100 crore (US$ 23.76 billion), according to the report, which is expected to contract to Rs 1,40,200 crore (US$ 19.02 billion) during the current financial year and recover to Rs 1,86,600 crore (US$ 25.32 billion) in 2021-22.
Even before the outbreak of COVID-19 in March, India was already facing a slowdown in economic activity, and the onset of the global pandemic and subsequent lockdown dealt a serious blow to the Indian economy, the study said.
The M&E industry has been affected, albeit to varying degrees, such as outdoor entertainment formats (films and events) and conventional media (to some extent print and TV) have been badly affected as people stayed indoors and dried up advertising spending, it said.
Digital advertising spending is now expected to exceed TV spending by 2020-21, which is a major milestone and turning point in India ‘s growth of media and entertainment, the report said.
KPMG in India Partner and Head (Technology, Media and Telecom) Mr Satya Easwaran added, ‘The distinction among segments of M&E has become more pronounced with the lockdown. Marketing spend has moved perceptibly towards digital media and away from traditional segments like print, radio and to some extent TV’.
Mr Easwaran added that for these conventional media segments, a greater dependence on subscription and other paying alternatives, as well as the creation of a viable digital business model, would be unavoidable.”