According to a new report by professional services firm EY titled Building a resilient enterprise-Now, Next and Beyond, advertising on digital is expected to grow between 5-15% over the next year
Digital segments within the media and entertainment sector such as audio and video streaming, online gaming and subscriptions, eSports and visual effects are all set to benefit majorly from the covid-19 pandemic in India with rapid changes in user behaviour and consumption. According to a new report by professional services firm EY titled Building a resilient enterprise-Now, Next and Beyond, advertising on digital is expected to grow between 5-15% over the next year.
Further, specific segments such as online education, broadband and Internet, hygiene, home entertainment and over-the-top streaming, e-commerce, health and wellness and online banking will see a 68%, 66%, 62%, 61%, 50%, 47% and 46% rise in consumption respectively, according to an online survey of more than 1,300 respondents in May 2020 conducted as part of the report.
Online gaming fares the best of these, with low impact expected on its advertising and subscription revenue, supply chain continuity, job security, long-term demand, cash flow and brand loyalty.
While a lot of production companies are currently unable to produce content in actual physical spaces and are bogged down by high dependence on advertising for revenues, the strengths and opportunities for the M&E sector lie in working from home, manpower optimization, digital community creation and the fact that people turn to entertainment out of a sense of escapism while the demand for news and knowledge increases in times of trouble.
The immediate need for content producers, the report says, is to build a secure back-to-shoot program to enable resumption of content production, refresh global content library with international releases, continue to invest in OTT platforms to take advantage of changing media consumption patterns and implement AI (artificial intelligence) targeted subscriber acquisition plans across media.
“The pay economy for online content will be successful if we work with quality content, and price it in the right manner," Vishnu Mohta, co-founder of Bengali video streaming platform Hoichoi said in an earlier interview to Mint. “It would happen because the covid pandemic has catapulted OTT growth by some five years. Things that people would have expected to see in 2025, might happen now."
While temporary impact within the sector is expected on segments such as radio and traditional television because of lack of fresh content, film, live events, sports and print are likely to take a hit for a longer period.
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