Entertainment and media to lose 20% in income: KPMG report

Mumbai: The pandemic will wipe out 20% in general revenues for the Indian media and leisure (M&E) sector, a report on the sector by KPMG estimated.

As per the estimates within the twelfth version of the annual report, the M&E business will finish FY21 with whole revenues of Rs 1.40 lakh crore in comparison with Rs 1.75 lakh crore within the earlier fiscal.

The report titled ‘A Year Off Script: Time for Resilience’ stated that verticals which will see the most important decline embody movies (-67%), animation, VFX and publish manufacturing (-51%), radio (-50%), out-of-home (-49%) and print (-38%). The solely sectors, which will handle to buck the development embody digital and OTT (+17%) and gaming (+10%) on account of greater consumption throughout lockdown.

“This is the first study on overall impact of Covid-19 on the M&E sector and we have only taken a two-year horizon, rather than usual five years, due to so much uncertainty in the market,” Girish Menon, associate and head, M&E, KPMG, informed ET.

Menon stated even earlier than the outbreak of the pandemic, India was experiencing a slowdown in financial exercise and onset of Covid-19 accentuated the severity of the blow to the Indian economic system.

However, all is just not misplaced because the business is predicted to bounce again to pre-Covid ranges by FY22 with 33% development over FY21.

One of the main predictions within the report is that the pandemic will speed up the unfold of digital promoting taking on other sectors in FY21 itself, as towards the sooner forecast of 2024.

“Globally, digital advertising has already surpassed other media, but in India, TV was the largest advertising media. It will change this fiscal,” stated Menon.

As per the report, the movie sector might take the longest time to recuperate as there’s certain to be a provide subject when they open.

“We will see a lot of tech integration happening in the media and entertainment. It will be traditional-cum-digital as you cannot think of digital as a separate business anymore,” Menon stated.

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