The pandemic has changed the world in colossal ways. The virus has brought businesses and the world economy to an unforeseen and staggering halt. The entertainment sector although, is known for its ability to adapt and reflect quickly to the changing consumer dynamics. As new technologies and trends drive innovation and unravel new opportunities in the media and entertainment industry, the coming times look propitious.
Technology has been one of the most pioneering elements of the media and entertainment industry trends. This is the way forward for new media trends and creating new revenue models for businesses looking to thrive in this sector. With changes in the media consumption patterns of users across geographies, businesses are forced to adhere to the changes with respect to the evolving trends in this sector.
On one hand, we are witnessing the highest level of consumption of content on the demand side considering everybody was confined to their homes, on the other hand, the supply of content was hit with the stalling of film and TV productions, web-series and cancellation of live events due to the lockdown, in a lot of ways it was a year of dichotomy. The irony is that while there is an increase in demand, the entertainment industry itself has come to a standstill. And the bigger challenge is that nobody knows for sure, how long this will last.
Production houses are taking time to understand the situation and are putting together a drawing board for a way forward. Shoots re-started, but since covid took the centre stage, it was stopped again, indefinitely. Due to a decrease in demand for various goods and services, the advertising budgets of companies can be seen retracting, in turn reducing ad revenue for media companies. The CRISIL report estimated an 18% cut in ad revenue. It is important to note that consumer consumption has increased as people tune in to the news to follow the latest updates on the pandemic. The health and protection of artists and the staff are of the utmost importance right now.
Although the uncertainty remains with covid, it isn’t all negative after all. Consumers will now pick and choose the content they would want to invest their time and money on. “Content is king and will continue to be so”. Given a rise in demand for content and increasing viewership, and the halts in production of new content, existing content is likely to become more valuable, and in time may increase competition not only for existing film and television libraries but also for all new forms of content. OTT platforms are ramping up the content space and replacing the multiplex with home theatres. Movies will have to rely on an extraordinary experience rather than a tentpole film with a bigger canvas.
Digital is the way forward; the pandemic has shown us that. Media companies as well as large corporations in other sectors have realized the value of digital content with brands posting content on social media to drive consumer engagement. Curated creative content, capturing the attention of the audience is the way to go!
The article is authored by Abhayanand Singh, CEO, Golden Ratio Films & Chairperson, Sg. SAIFF.