COVID-19 spells disaster for film biz, OTT to surge: KPMG report

The COVID-19 pandemic will have after-effects on the media and entertainment industry, turning out to be disastrous for films, entertainment events and theme parks. It will, however, boost digital media consumption in India.

KPMG has released a report titled “COVID-19: The Many Shades Of A Crisis- A Media And Entertainment Sector Perspective”, which highlights the impact of COVID-19 in the media and entertainment industry. The report states that the current environment could result in a dip in media consumption in the near term.

During the lockdown period, TV, gaming, digital and OTT platforms are seeing consumption growth. On the other hand, outdoor consumption models such as films, events, theme parks, are witnessing a dramatic fall with social distancing norms in place.

The report states that “digital consumption will see rapid incremental growth with India’s ‘digital billion’ trajectory likely to accelerate materially.”

“Digital media consumption, particularly OTT, has seen a surge during the lockdown period in terms of both time spent and newer audiences. The resultant habit formation is likely to result in a new higher normal once the situation around COVID-19 comes under control,” it read.

It also stressed that the OTT consumption in India could start seeing a shift from the mobile screen to the large TV screen “owing to the lockdown effect with broadband internet.”

Gaming is another sector which can benefit in the overall digital ecosystem, saying that “media companies, including OTT platforms, could seriously look at gaming as an extension to their ecosystem offerings”.

The study stressed that while the TV viewing has increased, it lacks fresh content. As of now, news channels are popular as viewers follow COVID-19 updates in real time. 

Image courtesy of thesatimes |

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