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Tuesday, March 9, 2021

Budget 2021: Loss of crores suffered due to Corona, now entertainment world has expectations from the budget

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After the dent in the entertainment world due to the shutdown of theaters due to the Coronavirus Pandemic, now the experts related to the entertainment world have high expectations from the budget 2021. The traditional entertainment industry has suffered a lot in the year 2020 due to the epidemic. Last year, theaters were closed for most of the month and only those with OTT platforms were seen. In such a situation, many production houses had to switch to OTT platforms and release their films on OTT platforms like Netflix, Amazon Prime and Disney Plus Hotstar.

Due to this, the manufacturers who used to make profit every year, did not get that much from the OTT release. The deal proved to be a loss for them. Not only this, the cinema owners have suffered loss of thousands of crores due to closed theaters. A PwC report states that the media and entertainment world is expected to reach $ 55 million by 2024.

According to the report, if the total revenue percentage of the industry is seen in terms of individual segment market, then OTT is expected to benefit the most. On the other hand, there will be a decrease of 2.6 percent Compound Annual Growth Rate (CAGR) in cinema revenue.

Finance Minister had assured

A delegation from the film industry also met Finance Minister Nirmala Sitharaman some time ago. In this meeting, he had raised the concerns of entertainment world, facing financial problems due to Corona’s attack, to Nirmala Sitharaman. The Finance Minister assured this delegation that his concern would be considered. In such a situation, the entertainment world has high expectations from this budget. The delegation I met with Nirmala Sitharaman was led by Sunny Deol, who is a film actor as well as an MP.

Expectations from budget

Entertainment industry has been demanding to reduce entertainment tax in GST and budget for a long time. Due to Corona, the effect of higher entertainment tax is directly affecting the common man’s pocket. When movie tickets are expensive, the audience does not turn to theaters, which directly affects the bank balance of filmmakers and distributors.

Apart from this, filmmakers also suffer a lot due to excise duty during the production of films. Excise duty many times film makers have to pay from their pocket. In such a situation when everyone’s pockets have been affected due to the corona epidemic, the entertainment industry is also bound by the expected budget to reduce GST, excise duty and entertainment tax.

According to a report, former CEO of Eros Group Niranjan has shared his idea to overcome the crisis of epidemic. He says that in 2021, the leaders of the government, telecommunications, media and entertainment world should consider important strategic opportunities to boldly position themselves to overcome the Kovid-19 crisis and thrive in the future. Niranjan says that at the moment there is a need to focus on customer needs and better customer engagement. He says that the entertainment world should work on some new ideas, which are interesting and viewers can connect with them.

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