MAM

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

https://www.indiantelevision.com/sites/default/files/styles/smartcrop_800x800/public/images/tv-images/2017/09/07/Indian_TV.jpg?itok=6YBn61R-

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

https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/01/18/zee-learn.jpg?itok=iBCbfm6f
Zee Learn appoints Anish Shah as chief financial officer

Zee Learn on Tuesday announced the appointment of Anish Shah as chief financial officer (CFO).

MAM Media and Advertising People
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/01/18/img_18012022_184503_800_x_800_pixel.jpg?itok=Jy1k5YMH
Zepto unveils new campaign for its fruits & vegetables offering

Mumbai: Grocery delivery app Zepto has launched a new DVC to drive its biggest offering yet - fruits and vegetables.  Coming just a few months since its launch campaign, this latest campaign developed by L&K Saatchi & Saatchi consists of three digital films that build on the brand’s promise...

MAM Marketing MAM
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/01/18/img_18012022_184150_800_x_800_pixel.jpg?itok=pggxs4UK
Crypto exchange OKEx rebrands as OKX

Mumbai: Cryptocurrency exchange OKX  on Tuesday announced a company-wide rebrand that reflects the dynamism and accelerating adoption of cryptocurrency. This shift, as highlighted by the company’s name change from OKEx to OKX, reflects the platform’s growing number of wealth creation opportunities...

MAM Marketing MAM
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/01/18/img_18012022_172946_800_x_800_pixel.jpg?itok=QPn1JHGR
Kantar Annual Trends 2022 report unveils 10 themes for recovery & innovation

Mumbai: 2021 has been a year of discovery for consumers. As we learn to adjust in a world that changes often and unpredictably, brands would need to listen more intently to consumers than ever before, be transparent in their promises and provide solutions for their evolving needs. Keeping this in...

MAM Marketing MAM
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/01/18/img_18012022_171740_800_x_800_pixel.jpg?itok=j866mkvo
FoxyMoron bags digital mandate for Organic Tattva

Mumbai: FoxyMoron, the full-service creative and performance agency under the Zoo Media Network has bagged full-funnel digital and performance marketing mandate for Organic Tattva, following a multi-agency pitch. The business will be handled by the agency’s Gurgaon office.  FoxyMoron will be...

MAM Media and Advertising Account
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/01/18/img_18012022_124747_800_x_800_pixel.jpg?itok=Ik8glywc
upGrad taps Sanjay Kumar to build corporate affairs & public policy vertical

Mumbai: Ed-tech major upGrad on Tuesday announced the appointment of Sanjay Kumar who will spearhead the company’s new vertical of corporate affairs and public policy for India. He will be based out of the company's Noida office and also lead the scholarship efforts. As part of his new role, Kumar...

MAM Media and Advertising People
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/01/18/img_18012022_122554_800_x_800_pixel.jpg?itok=K7k06irV
Shashi Sinha, Vikram Sakhuja join Axis My India advisory board

Mumbai: Consumer data intelligence company Axis My India on Tuesday announced the constitution of a pioneering advisory board with IPG Mediabrands CEO Shashi Sinha and Madison Media Group CEO Vikram Sakhuja joining the board. Sakhuja is nominated as chairman of the board. "The company has embarked...

MAM Marketing MAM
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/01/18/alia_bhatt22.jpg?itok=NQdsH09e
Alia Bhatt performs magic tricks in Lay’s new ad for ‘thinnest chips’

MUMBAI: Lay’s has launched a new digital campaign for its recently introduced “thinnest range of chips” - Lay’s Wafer Style.  Titled ‘#TheThinPossibleChip’, the campaign encourages fans to try fun and quirky magic tricks using the flavourful and light, “Lay’s Wafer Style – a chip so thin and paper-...

MAM Media and Advertising Ad Campaigns
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/01/17/img_17012022_181443_800_x_800_pixel.jpg?itok=u99W6Miq
Eggoz Nutrition unveils its 'Extra In The Ordinary' campaign

Mumbai: Eggoz Nutrition, a Gurgaon-based consumer-oriented and integrated farmer egg brand has launched a new campaign called 'Extra In The Ordinary.' Produced by Some Place Nice, the campaign was launched online, utilising a combination of static and video assets to reach the target demographic...

MAM Marketing MAM

Sign up for our Newsletter

subscribe for latest stories

* indicates required