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The sector should recover by FY22 to its current levels, an implied loss of two years...
Media and Entertainment sector: Projected performance
The M&E sector in India is projected to see a significant decline of 20 per cent in total revenues in FY21, with deep cuts in Print and Films, followed by Television, on account of the COVID-19 disruption
Digital consumption segments i.e. Digital (including OTT video) and Online gaming are expected to be potential silver linings, showing a positive, albeit slower growth in FY20. With a majority of the population working from home, digital consumption across the board has seen a significant upswing, and while advertising revenues on digital have been impacted compared to last year’s hyper charged growth, subscription revenues have seen an upswing and could end up at an accelerated new normal once the pandemic subsides
Digital advertising revenues are projected to overtake TV advertising revenues for the first time in FY21 and will establish new leaderboard rankings
Assuming the pandemic is under some form of control by the end of FY21 and businesses learn to operate in the new normal, FY22 will likely be a bounce-back year for the sector, with a 33 per cent growth projected over FY21
Digital and gaming are projected to continue their strong growth in FY22 as well, with the habit formation around consumption translating into greater monetisation once the economic activity recovers
Underlying core themes will continue to play their part with Television subscription revenues being constrained due to implementation of NTO 2.0, while Print (particularly English) facing readership and advertisement spend pressures.