Digital to grow; Print to remain on ventilator after COVID-19 says KPMG Report

A KPMG report titled “COVID-19: The many shades of a crisis- A media and entertainment sector perspective” highlights how traditional media could face challenges in the near to medium term.

According to the report, ad-spend pressures will linger on the back of weak economy as well as lower domestic consumption.

Meanwhile, digital consumption will witness a rapid incremental growth with India’s digital billion trajectory likely to accelerate materially.

Similarly, at-home entertainment options such as digital, TV, online gaming will see an upswing as ‘lockdown behaviour’ results in habit formation.

As per the report, the economy is under stress and the adverse impact on the key ad-spend sectors such as consumer, auto, e-commerce etc is likely to impact monetisation significantly. As a result, though consumption may rebound earlier, monetisation recovery may take Longer time. 

Meanwhile, digital subscription revenues could see an upswing post COVID-19 as habit formation in terms of OTT video consumption sets in.

As for traditional media, print will get a new lease of life due to its credibility factor as fake news of digital medium runs rampant. “It is critical for print businesses to leverage this opportunity to evolve and build strong integrated digital cum print solutions to retain consumer loyalty,” the report stated.

According to the report, ad-spend pressures will linger on the back of weak economy as well as lower domestic consumption.

Meanwhile, digital consumption will witness a rapid incremental growth with India’s digital billion trajectory likely to accelerate materially. Similarly, at-home entertainment options such as digital, TV, online gaming will see an upswing as ‘lockdown behaviour’ results in habit formation.