Covid-19's impact on print media will be low: KPMG report

NEW DELHI: While advertising spending pressures will persist in India's media and entertainment (M&e)industryinthewakeofaweakeconomyandlowerdomesticconsumptionevenafternormalcyreturns,thecovid-19impactoncertainsectorslikeprintmedia,onlinegamesandoverblownplatformswillbelow,akpmgreportsaidmonday.

infact,printmediacangetanewleaseonlifeafternormalcyreturns.

whatwillworkinfavorofthe333billionrupeeprintmediaisincreasedcredibilityinthefaceoftheproliferationoffakenewsonsocialmedia,thereportsaid,addingthatcirculationwillincreaseintheshorttermoncetherestrictions,whichwillalsoresultinimprovedadmonetization.

forprintmedia,thedigitalpresenceisnowmorecriticalandcouldtranslateintogreatermonetizationopportunities,addedthereportcovid-19:themanyshadowsofacrisis:aperspectivefromthemediaandentertainmentsector.

themediaandentertainmentsectorinindiawasestimatedat1,631croreinfy19andgrewatacompoundannualgrowthrateof11.5percentduringthefy15-fy19five-yearperiod.

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thiswasagainstageneralgdpgrowthrateofthecountryof7.2%duringthesametime.

thecovid-19pandemichasresultedinadrasticcutinadvertisingexpenditureacrossallmedia.however,withpeoplebeinghomebound,consumptionofmediaandentertainment-anddigitalmediainparticular-hasseenconsiderablegrowth,satyaeaswaran,partnerandleader-marketsenablement,technology,mediaandtelecom(tmt),kpmginindia,saidinastatement.

afterthecrisis,weanticipateanevengreaterintegrationoftechnologyinourdailyliveswithamarkeddigitalprogressionofindiansinallsocioeconomicclasses.however,monetizationcouldremainachallengeintheshortterm.

thereportnotedthatmediaconsumptionhasgenerallytendedtobeincomeinelastic,butthecurrentenvironmentisunprecedentedandcouldleadtoadropinmediaconsumptionintheshorttermand,whatmoreimportantly,arealignmentinconsumermodels.

however,duringtheshutdownthatstartedfrommidnightonmarch24inindia,certainm&esegmentsareexperiencinggrowthinconsumption,particularlyintv,games,digitalandott.

ontheotherhand,outdoorconsumptionmodels(movies,events,themeparks,etc.)arewitnessingadramaticdropduetotherulesofsocialdistancing.

also,mostsegments(exceptnewsrelatedcompanies)cannotoffernewcontentwithstagnantproductioninallformats.

manysegmentsofm&ealsodependoncontractemployees/freelanceagentsandhencetheimpactofthecrisisonlivelihoodsinthissectorisalsoconsiderable,kpmgsaidinthereport.

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