New Delhi: The economic slowdown, exacerbated by the covid-19 pandemic, is set to cull the Indian media and entertainment industry’s revenue by 16% to ₹1.3 trillion this fiscal, according to domestic rating agency CRISIL.
Advertisement revenue, which accounts for 45% of the pie, will see a sharper cut of 18%, while subscription revenue, accounting for 55%, will be relatively resilient with a likely decline of 14%.
The sharp drop in revenues will impair the debt metrics of the industry, while balance sheet strength and time to recovery will determine the overall impact on credit profiles.
Ad revenue, which correlates strongly with economic growth, will take a hit as India's gross domestic product (GDP) growth hurtles towards a multi-decade