Trending Now: Traditional media to remain under pressure if economy doesn’t recover

Shailesh Kapoor, CEO, Ormax Media, sounds a cautious note for traditional media in the year ahead, given the downturn in the economy. He, however, sees digital continuing to grow, irrespective of what happens otherwise. 

What were the few big changes that you think were of importance in 2019 for our industry?
Three major changes in 2019 were the start of the NTO regime in the broadcast space, the explosion of the OTT space, and the slowdown of the economy, impacting traditional media in particular. 

What are the big changes that you are expecting in 2020?
In 2020, a lot will depend on how the economy recovers. Currently, the market sentiment is extremely cautious and skeptical. If there is recovery during the year, we could see the usual 10%+ growth in AdEx and in the M&E sector. However, if the economy does not come back to better health, traditional media like TV, print and radio, may continue to be under pressure this year too. TV, in particular, is facing additional challenges via NTO 2.0, and has the economy and the NTO issue to tackle. But digital will continue to grow, irrespective of what happens otherwise. 

How has consumer behaviour changed with the introduction of tech-based marketing?
Consumer behaviour has evolved significantly because of the arrival of the smartphone and digital marketing. Social media and digital content are now mainstream options, especially with falling data costs. Traditional advertising is slowly making way for co-creation of content and in-content marketing for advertisers. Each category has responded differently, for example, film audiences are flocking to the theatres to watch a film like ‘Uri’ or ‘Tanhaji’ or ‘Kabir Singh’, but would rather watch the smaller films on OTT. 

Are we expected to see some big shifts around data regulation in India? How will it affect business?
One can never really predict what the Government comes up with. A lot depends on how Jio’s plans unfold this year, so we have to wait and watch. 

How do you anticipate the AdEx growth across platforms in 2020?
Digital should comfortably be the highest-growing media. Traditional media will depend on how the economy recovers. Cinema should grow at a decent 10-12%, like it did in 2019.