As per the FICCI-EY’s Media & Entertainment report, In-Cinema advertising will touch the magical figure of 8 bn this year. The estimated figure shows a gradual increase of 0.3 bn from the last year’s figure despite the slow down in business. The COVID-19 pandemic has hit the media and the film industry hard with the shooting and the release of the films being postponed indefinitely. The theatres and the multiplexes have also been shut down. So, while there has been a considerable decline in the physical revenues, In-Cinema advertising has managed to keep its steady climb.
The FICCI-EY report appropriately states the reasons for the profit in revenues to be long-term advertising deals. Instead of weekly or bi-weekly deals, the multiplexes and the media operators have taken on the exercise to sign 12-week deals. This is leading to greater and uninterrupted branding as opposed to the earlier deals that depended on the success of the films. Along with long-term advertising goals, the multiplexes are also actively engaging in devising customized solutions and on-ground campaigns. As a result, the deals now produce higher revenue for both the parties irrespective of the fate of the movies.
Furthermore, the media aggregators now have a higher chance of getting more screens for In-Cinema advertising. As the on-screen broadcasting of advertising in theatres has increased by 17 to 20 minutes per show, media operators are now booking almost 70% of the movie screens for advertising. Therefore, the partnership between the media aggregators and the multiplexes has helped the In-Cinema advertising industry to steer through these uncertain times.
However, since the impact of COVID-19 on the Media & Entertainment industry could not be accurately calculated by the body, the estimated figure is prone to vary.