MAM

Guest Column: Four market forces lending the power to risk in Indian TV industry

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/smartcrop_800x800/public/images/tv-images/2017/09/07/Indian_TV.jpg?itok=m70IF_G9

Overall, the outlook for the M&E industry is very positive and robust. This is spearheaded by continuing top performance by Television and projected unprecedented performance by digital.

Strong long term economic fundamentals driven by domestic consumption – as high as 70% of GDP- constitutes the core reason for the outlook to be rosy. This combined with delayed yet inevitable completion of digitisation with its resultant benefits.  In the long run, government policies of demonetisation and GST also lending further boost to GDP would further help.

Rising share of FTA channels, even as it may pull down long term subscription revenue forecast, is expected to only contribute to the overall health of the industry.

The future very clearly revolves around digital.  With the government’s unabashed push for digital consumption and digital payments, mass adoption of technology is a foregone conclusion. Digital media is no longer being viewed as an additional distribution platform but as a core revenue engine.

Investment Outlook

public://F1_19.jpg

Driven by growth, the investment outlook through an analysis of the past as also last year 2016 is very rosy.

public://F2_10.jpg

Key Market Force for Investments

Four key market drivers favouring India and Indian M&E industry in general and Television industry in particular, are:

  1. Favourable demographics
  2. Tremendous Market Potential
  3. Immense Talent Availability
  4. Increasing Digital consumption

Favourable demographics

Per capital income growth rate is projected to double from 2016 to 2020. India has the largest youth population in the world (350 million).  Spend on leisure activities in India is projected to grow at a CAGR of 8.4% up to 2025.

Tremendous Market Potential

Traditionally urban India has been a major source of revenue.  TV reach in rural markets has expanded rapidly from 78 million hhs in 2015 to 99 million in 2016 (up 27% yoy). Many TV broadcaster have therefore launched rural-specific ‘Free-to-air’ to tap the growing potential.

Immense Talent Availability

The M&E industry employs 0.6 million people as of 2016 which is likely to increase to 1.3 million by 2022. The government has set up M&E Skills Council (MESC) with a   mandate to develop 1.2 million skilled workforce by 2020.

Increasing Digital consumption

Penetration of high-speed broadband and wireless internet and proliferation of low-cost smartphone devices have led to an increase in consumption of digital media content such as online media, music streaming and on-demand video streaming. Plummeting data cost will continue to support high growth in the segment, particularly in video streaming.  Attracted but high growth, there has been an unprecedented increase in OTT service providers including world leaders in OTT like Netflix and Amazon.

Conclusion

Impending challenges galore. For every sub-segment of Media and entertainment industry. These relate to requirements to innovate, to evolve with this change and to evolve for building sustainable business models.

Media and entertainment companies will need to be flexible and nimble to be able to make the most of this unfolding opportunity. The long-term future for the television industry is very robust with CAGR projections above 14% for both segments of ad revenues and subscription revenues. The Indian Media & Entertainment industry is expected to leap forward after a slow 2016.

public://Untitled-3_17.jpg

(Piyush Sharma, a global tech, media and entrepreneurial leader, created the successful foray of Zee Entertainment in India and globally under the ‘Living’ brand. The views expressed here are of the writer’s and Indiantelevision.com may not subscribe to them.)

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/04/20/KKR.jpg?itok=VGh5T3w-
DDB Mudra Group creates a new rally cry for team KKR

MUMBAI: The Kolkata Knight Riders (KKR) is a franchise cricket team representing the city of Kolkata (West Bengal) in the Indian Premier League (IPL). The team, defined by its ‘Korbo, lorbo, jeetbo’ (Play, Fight, Win) spirit has won the championship trophy twice. At the IPL 2018, the team has...

MAM Marketing Brands
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/04/20/TVC.jpg?itok=ZAoero-6
Black & White launches first India TVC

MUMBAI: Black & White Gettogethers from Diageo India has launched its first-ever India-specific TVC conceptualised by J Walter Thompson Bangalore and inspired by the brand message, “Made of Sharing”. It is a commercial that exhorts us to go out there and share moments and experiences with...

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/04/20/swiggy.jpg?itok=8uUGzjSI
Swiggy smashes creative sixer this IPL season

MUMBAI: Food ordering and delivery platform Swiggy has launched six relatable and witty television commercials this IPL season to celebrate two of India’s biggest passions — cricket and food. The multi-lingual campaign is conceptualised by Lowe Lintas, Bengaluru. Swiggy roped in seasoned cricket...

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/04/20/Activa_5G.jpg?itok=AVFD1XCm
Honda launches new campaign for Activa 5G

MUMBAI: Honda Motorcycle and Scooter has introduced a 360 degree ad campaign for the iconic Activa 5G. Developed by Dentsu One, a Dentsu Aegis Network Company, the TVC is now on air across all popular channels.

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/04/20/Bisleri-Fonzo.jpg?itok=UUzSs6YS
Bisleri launches new ad for Bisleri Fonzo

MUMBAI: Bisleri International recently announced the launch of its new brand Bisleri Fonzo, a mango aerated drink. The launch is supported by an integrated marketing campaign #MMMbhiAAHbhi which conveys the sensorial experience of the product – the delectable taste of the juice and the refreshment...

MAM Marketing Brands
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/04/20/Sania_Mirza-800_0.jpg?itok=clgZmkgG
Centuary Mattresses gets Sania Mirza as brand ambassador

MUMBAI: Centuary Mattresses has appointed Indian tennis player Sania Mirza as its brand ambassador. This move also makes the company an early mover amongst the Indian mattress companies to have an association with a celebrity brand ambassador.

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/04/20/IAA_1.jpg?itok=QnNuHZt7
IAA unveils new identity on 80th anniversary

MUMBAI: The International Advertising Association (IAA) has unveiled its new identity and mission, symbolised by the introduction of a new logo that signifies its transformation and culture of thought leadership built over the association’s 80-year history.

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/04/18/Windus-air-cooler.jpg?itok=CTFS2AdS
BlueStar promotes new cooler range

Air conditioner manufacturer, Blue Star, recently entered the air cooler market with its own brand: Windus.

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/04/18/tiger.jpg?itok=Z_UnZnPC
Forca launches new campaign with Tiger Shroff

MUMBAI: Lifestyle has launched a powerful digital first campaign for its denim-wear brand Forca starring Tiger Shroff. Capturing Shroff in action, performing stellar stunts, the film dramatically frames his high-action acrobatic jumps, backflips, kicks and many such moves that highlight the...

MAM Marketing Brands

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories