Media and Communication
Overview of the Sector
The Indian media and communication sector is one of the most vibrant and rapidly evolving industries, spanning television, print, radio, digital media, advertising, OTT platforms, and public relations. With a vast consumer base and a diverse linguistic and cultural landscape, India is the second-largest media market in the world.
Driven by increasing internet penetration, smartphone usage, and demand for on-demand content, digital media and OTT platforms have seen exponential growth. Traditional media continues to remain relevant, especially in regional markets, while advertising and content creation are becoming more data-driven and personalized.
While the sector offers significant growth opportunities, media companies often face challenges in tracking complex revenue streams and maintaining transparency in contracts, rights, and royalties. Effective financial reporting and regulatory compliance are critical for sustaining investor confidence and operational integrity.
With continued digitization, regulatory evolution, and audience engagement across multiple channels, the sector is poised for dynamic and sustained growth.
The media and communication industry operates in a dynamic, high-volume, and rapidly evolving landscape, encompassing print and digital publishing, television and radio broadcasting, OTT platforms, advertising agencies, production houses, and public relations firms. Given the diversity of revenue models and the heavy reliance on intellectual property, a robust audit framework is essential for financial transparency, regulatory compliance, and strategic decision-making.
Financial complexities in the sector arise from multifaceted revenue streams, including advertising sales (direct and programmatic), subscription income, content licensing, brand integrations, syndication, and royalty arrangements. The recognition of revenue is often contingent on delivery metrics (impressions, airings, clicks) and contractual milestones, requiring careful evaluation of performance obligations under Ind AS 115. In addition, content production and acquisition costs—often capitalized and amortized over uncertain usage periods—demand robust asset tracking and impairment testing.
Audit procedures are further complicated by fragmented operational systems, varied monetization channels, and interlinked contracts with advertisers, media buyers, digital platforms, and talent agencies. Validation of royalty calculations, advertising agency commissions, and barter transactions introduces additional complexity. Media companies operating in multiple jurisdictions must also address foreign currency transactions, transfer pricing, and compliance with FEMA regulations.
Internal audits play a critical role in monitoring ad inventory utilization, content rights management, digital revenue reconciliation (especially from platforms like YouTube, Meta, OTT apps), and intellectual property safeguards. Statutory audits must assess compliance with the Companies Act, Income Tax Act, GST (including place-of-supply issues), and TDS on talent contracts and digital services.
In an industry where reputation, content ownership, and monetization are intricately linked, audits serve as a vital tool to mitigate financial misstatements, enforce internal controls, and uphold stakeholder confidence in a highly competitive and regulated environment.
The media and communications industry operates in a fast-paced and highly diversified environment, encompassing broadcasting, digital media, print, advertising, content production, and OTT platforms. At P. Srinivasan & Co., we offer specialized audit services tailored to address the sector’s unique financial and regulatory challenges. Our audit process covers complex revenue models including advertising income, subscription fees, syndication, royalty arrangements, and brand partnerships — ensuring accurate recognition of income in line with Ind AS 115 and contractual obligations.
We verify the valuation and accounting of intellectual property rights, licensing agreements, and content acquisition costs. Capital expenditure on production assets, studio infrastructure, and digital platforms is reviewed for proper capitalization and depreciation treatment. We also assess internal controls over ad inventory management, billing systems, third-party contracts, and platform-based monetization.
Entities in this space must navigate regulatory compliance under the Companies Act, Income Tax Act, GST laws (especially for bundled or cross-border services), and TDS on talent and vendor payments. We ensure statutory compliance, proper deduction and remittance of taxes, and clear disclosures in financial reporting. Our team is also experienced in reviewing royalty payments, influencer agreements, and barter transactions, which are common in this industry but prone to audit risks.
With a sector-specific audit approach, P. Srinivasan & Co. supports media and communication businesses in maintaining financial clarity, enhancing internal governance, and staying compliant with evolving legal and commercial frameworks — ensuring long-term sustainability and stakeholder confidence.
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Systems & process setup & implementation
We design and create audit plan and execute audit procedures which enables our clients to have the audited reports at their fingertips -
Tax advisory
Designed to help clients understand and minimise the tax challenges that Educational Institutes face -
Authenticating Records
We look into the accounting records and provide valuable feedback and help the organisations win against any hurdles that come their way -
Strategize Growth
We help with people management, business planning and brainstorming ideas effective for the growth and development of the business/ organisations. -
Mergers & Acquisitions
As a Chartered Accountant, we play a crucial role in guiding businesses through the complexities of mergers and demergers.