The process of the gradual reopening of the Indian economy has begun, but the shock of COVID-19 on businesses has been severe. All sectors have been affected by the coronavirus outbreak and its associated lockdowns to varying degrees.
The M&E sector faced significant disruptions with the lockdown forcing all forms of outdoor entertainment, particularly cinemas and events to shut down and content supply chains to dry up.
With lockdown now easing, content supply appears to be restarting, albeit with baby steps. Cinemas and events, however, continue to be shut and face significant uncertainty regarding return to normalcy in the near-term. Advertisement spends appear to be recovering and with a strong festive quarter expected in Q3FY21, there is likely to be a quicker recovery in marketing budgets. The overall reduction in advertising expenditure therefore may turn out to be lower than the contraction in economic activity.