Covid-19 impact: Media market to contract in FY21, but digital holds up

After growing at a rate of 10 per cent over the last five years, India's media and entertainment market will decline 20 per cent in FY21, audit and consultancy firm KPMG said in its latest report on Wednesday. 

The reason is the coronavirus (Covid-19) pandemic and the lockdown imposed to curb the spread of the disease, which has hit significant parts of the business including print, television and cinema, with the latter shut for six months over social distancing concerns. 

While consumers are adjusting to the new normal and cinema halls may eventually open as part of Unlock 5.0, the only bright spot this year will be the spurt in digital consumption and online gaming, says KPMG. Digital  advertising, says KPMG, will overtake TV advertising for the first time this fiscal, pointing to the priorities of advertisers. Growth in digital consumption as well as online gaming is expected to continue into FY22, which will be a bounce-back year for the overall market, the consultancy says.