The Media & Entertainment sector is facing unprecedented challenges from the spread of COVID-19. Rapid changes in consumer behaviour and consumption, stoppages in content production, cancellation of live events and sports, and cuts in advertising spend, are impacting companies across the ecosystem, states a recent EY Report.
Media agencies, many of which were grappling with operational volatility, are struggling to maintain media spend as marketers manage risks and reduce spend rapidly. Publishers and media companies are benefitting from some marketers seeing the opportunity but face advertising revenue losses. Film and TV producers are under pressure to mitigate the impact of delay in release schedules, theatre closures, and production stoppages. Bright spots across the industry include digital pure-plays (such as video gaming) and other virtualized production capabilities.
Companies are currently focused on enterprise resiliency and triaging revenue, but will likely need to turn to rapid cost reduction as business models settle into new norms as business models are not on a solid foundation. Bright spots across the industry include digital pure-plays (such as video gaming) and other virtualized production capabilities.
Also Read: Connected TV promises to command larger share of budget in coming years: GroupM Playbook
Key highlights from the EY Report on the Impact on COVID-19 on the M&E sector include:
- Demand for knowledge and entertainment has increased, but ad revenues and content production are impacted.
- Covid-19 could benefit some M&E segments like online news, online gaming and OTT permanently.
- Categories such as OTT, Gaming, eSports, Digital subscriptions and VFX have been affected positively whereas Film, Live Events, Sports, Out of Home, MICE Print have been affected negatively. A temporary impact has been seen on Traditional TV, Radio and Content production.
You can read the entire report here:
EY Report: Impact of Covid-19 on the M&E sector from Social Samosa
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