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Revival in the New Normal: How Entertainment Sector Ensures This Happens?
Revival in the New Normal: How Entertainment Sector Ensures This Happens?

March 19, 2021

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- By Mr. Vikram Kumar, Co-Founder and Managing Director, SRV Media Pvt. Ltd

 

COVID-19 outbreak caused turbulence in all industries and the entertainment sector is no exception either. 

CRISIL estimated a decline of 16% (Rs 25000 crore) for the Indian entertainment industry in the fiscal year 2020-21. Due to shut down of cinema halls for six months, the film industry was the worst hit – it witnessed a loss of Rs 3000 crores across six languages according to trade experts. Fortunately, the TV industry and OTT platform kept the boat afloat to some extent. 

As per the BARC report, TV viewership jumped 9% in 2020. The TV advertisement volumes also increased by 34% in the second half of 2020 as compared to the first half. However, the TV industry still couldn’t avoid losses stemming from the non-production of new episodes of ongoing shows and cancellation/postponement of live telecasts of events. Moreover, the TV industry also couldn’t stand competition to OTT platform which has registered a 60% uptick in subscriptions during the pandemic as per a BCG report.

Though the dynamic nature of pandemic and economic slowdown continues to grapple with the entertainment industry, things are gradually getting on track again. The shoots have commenced, theatres have re-opened and advertising volumes and spend is showing an upswing trend. A KPMG report projects that the entertainment sector will rebound in FY22 with a 33.1% growth rate to reach a Rs 1.86 trillion market size.

The entertainment industry can achieve this growth trajectory by embracing the new normal and innovative operating models for revival. Here are some strategies to look forward to:

  • Ensure Zero Compromise on COVID-19 Precautions 

The industry will need to follow a detailed safety and hygiene protocol for cast and crew to return to production shoots. COVID tests on the sets, camera tricks, special effects, changes in scripts to accommodate social distancing norms, etc will be a few ways to ensure continuity of shoots.

The multiplexes will also have to adhere to COVID-19 precautions, offer an online ticket booking facility and manage staggered show timings to get the audience to return to the theatres in a safe environment. 

  • Shift to Low Budget

While the Indian entertainment industry is known for its larger-than-life productions, the current times call for strict cost reduction measures. The actors and technicians should accept pay cuts graciously. Shoots should happen locally in India. Producers should tap social media and influencers or host virtual meet and greet events and run contests instead of multi-city tours, billboard adverts or TV show appearances to promote the new releases. The industry should consider integration with digital technology on a mass scale for content production to distribution.

  • Rethink Advertising Strategy

Advertisements form a major chunk of revenues for TV, theatres and OTT. But brands are also braving the impact of the pandemic and have lowered their ad budget. So, it has become crucial to lower rates for commercial spots, both prime and non-prime time, despite lower profit margins.

  • Telecast of Live Events

The sports matches, music concerts and open-air festivals have begun across the country. Some artists are even performing live from their studios to connect with their audience. TV channels and streaming platforms can now increase their revenues through telecast of these events.

  • Adopt a Hybrid Model for Releases

Without a doubt, the pandemic has led to a seismic change in audience behaviour in terms of content consumption. They are now switching to different formats to watch content on their terms. So, it will make more sense to release movies in theatres as well on TV and OTT platforms across different screens and devices simultaneously. It would also be a good idea to explore the option of movie releases in drive-in theatres to let the audience watch from the safety of their cars and with social distancing rules. However, the players will need to work out a licensing, royalty and revenue-sharing structure.

  • More Content in Shorter Churn Out Time

With the speed at which the audience is consuming on-demand content, OTT platforms will have to ensure that they produce new and original content constantly and quickly to keep their viewers hooked.

The entertainment industry may take 2-3 years to recover from the severe blow of COVID-19. But the foreseeable future looks promising. 


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Dr. Vikram Kumar

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