Category: RESEARCH

  • India’s online gaming market to reach INR16,428 cr in FY23: EY

    By Our Staff

     

    Over the past three years, the online gaming industry has grown at a CAGR of 28%, reaching INR16,428 crore in FY23 and is likely to reach INR33,243 crore by FY28, as per the latest EY report, titled ‘New frontiers – Navigating the evolving landscape for online gaming in India.’  This boost is largely attributed to factors like widespread smartphone penetration, improved internet connectivity, a growing youth population, and the development of local gaming content.

     

    Additionally, the pandemic played a significant role in driving up mobile game downloads as people sought digital entertainment. India continues to be a ‘mobile first’ market, with 94% of its gamer base engaging in mobile gaming. Despite the rapid increase in game consumption, India’s online gaming revenue is still merely 1.1% of global online gaming revenue.

     

    As per the EY report, attracting significant investments, the sector is expected to draw INR22,931 crore between FY20 and FY24 YTD from both domestic and foreign sources. Currently employing around one lakh people, the sector shows potential to expand job opportunities to 2,50,000 by 2025.

     

    Said Raghav Anand, Partner, EY Parthenon: “India’s online gaming segment is experiencing remarkable growth, indicating substantial economic potential. With a robust gaming community consisting of 42.5 crore gamers—second globally after China—the sector has potential to accelerate Foreign Direct Investment inflows, job creation, and investments across various sectors. For the segment to truly thrive, a stable regulatory and legal framework is imperative. Uncertainties can impede the realization of its full potential and hinder rapid scalability.”

     

  • The Reliance-Disney deal in 10 points

    The Reliance-Disney deal in 10 points

    1. Reliance Industries Limited (RIL), Viacom 18 Media Private Limited (Viacom18) and The Walt Disney Company (Disney) announced on Wednesday the signing of binding definitive agreements to form a joint venture that will combine the businesses of Viacom18 and Star India. As part of the transaction, the media undertaking of Viacom18 will be merged into Star India Private Limited (SIPL) through a court-approved scheme of arrangement.

    2. The Board of Directors of the Company, at its meeting held on Wednesday, approved primary investment of Rs 11,500 crore (~US$ 4 billion) in Star India Private Limited (SIPL) to acquire 16.34% of the paid up equity share capital of SIPL in terms of the subscription agreement between the Company and SIPL. SIPL was incorporated on February 8, 1994. The turnover of SIPL, as per its audited standalone financial statement, for financial years 2022-23, 2021-22 and 2020-21 was Rs 17,332.78 crore, Rs 15,500.77 crore and Rs 11,761.90 crore, respectively.

    3. The transaction values the JV at ₹70,352 crore (~US$ 8.5 billion) on a post-money basis, excluding Post completion of the above steps, the JV will be controlled by Reliance Industries (RIL) and owned 16.34% by RIL, 46.82% by Viacom18 and 36.84% by Disney. Disney may also contribute certain additional media assets to the JV, subject to regulatory and third-party approvals. Currently, Paramount also has 13% stake in Viacom18, but there are rumours that it may exit the venture in some time.

    4. Uday Shankar and James Murdoch (Lupa Systems) own Bodhi Tree Systems which owns 13% of Viacom18.

    5. Nita M Ambani will be the Chairperson of the JV, with Uday Shankar as Vice Chairperson providing strategic guidance to the JV.

    6. Disney to provide content licence to the joint The JV see the coming together of the linear TV and digital streaming properties from both stables. That is: Star Plus, Colors, Star Sports and Sports18. All the regional channels.

    7. Jio Cinema and Hotstar are likely to be merged.

    8. The JV will have over 750 million viewers across India and will also cater to the Indian diaspora across the world. So basically it will be the combination of the media expertise, cutting-edge technology and diverse content libraries of Viacom18 and Star Plus the domestic and global entertainment content and sports livestreaming services. Also. Disney’s films and shows to Viacom18’s renowned productions and sports offerings. The JV will also be granted exclusive rights to distribute Disney films and productions in India, with a licence to more than 30,000 Disney content assets, providing a full suite of entertainment options for the Indian consumer.

    9. The transaction is subject to regulatory, shareholder and other customary approvals and is expected to be completed in the last quarter of Calendar Year 2024 or first quarter of Calendar Year 2025. This includes the all-important clearances from the Competition Commission of India (CCI).

    10. The news operations of Reliance Industries (under Network18 Media & Investments Limited) are not part of this deal.

  • Are ‘Trust in News’ & ‘Happiness’ interconnected?

    Are ‘Trust in News’ & ‘Happiness’ interconnected?

    Avik ChattopadhyayTwo very interesting global reports have been published over the last one week. The first is the Reuters Institute Digital News Report 2023 and the second is the 2023 edition of the World Happiness Report. As a marketer and ‘brand-o-phile’, I see a subliminal connect between the two.

     

    The Reuters Institute Digital News Report is an outcome of more than 90,000 responses across 46 countries on how much one trusts news, through conventional as well as digital media. While the overall global trust score has dropped a few percentage points, the report states that “it is not surprising that news consumers are increasingly feeling overwhelmed and confused, and many are turning away temporarily or permanently. Selective news avoidance and news fatigue have been exacerbated by the challenging times we live in.”

     

     

    India is somewhere middling with 38% of news consumers trusting what they read and see. It has dropped 3 % points since the 2022 report. Now with the election season looming upon us, one can expect a sudden drop in the score with every political party resorting to downright unethical and fake communication without batting an eyelid on the impact on an already tense social fabric.

    The special note on India in the report is quite telling.

     

     

    Credibility is a huge factor. With the latest Press Freedom Index ranking of 161 out of 180, however much one may want to downplay the Reporters Without Borders study as being driven by agenda and deliberately disparaging towards the world’s biggest democracy, one cannot cross one’s heart and denounce it.

     

    The note states that “our Digital News Report survey finds steep falls in both the consumption and sharing of news. There was a sharp decrease in access to online news (12 percentage points lower than last year), particularly through social media (-11pp), the main sources of news for a predominantly younger audience. Television, popular among a large section of the population, also saw a 10pp decline as a news source with our younger and more urban-based sample.”

     

    While the government has brought checks and measures for media platforms, especially digital, on the authenticity of the news and its possible impact on factors like social harmony and national security, there are none for the social media teams of all political parties who deliberately churn out one-sided or fake posts, with the clear objective of misleading the populace and even instigating it into unrest. When the digital platforms dig up and expose these untruths, there is no legal recourse to punishing these people. All the Johnnies are consuming too much sugar without remorse.

     

    As the judiciary at the highest level seems to be the only panacea for most ills in the country, some sane citizens should file a PIL against such lie-spinners and let the court pull them to task.

     

    The second report is the much debated and hated World Happiness Index by Gallup wherein certain sections of our thought leaders and citizenry cannot understand how can people in Pakistan, Bangladesh and Sri Lanka be happier than us, especially when we are going through our “Amritkaal” towards becoming the undisputed “Vishwaguru”. They need to understand that once again, this global report is not being undertaken with the sole purpose of showing India in bad light, but to help us introspect.

     

    If we study our score across the seven parameters in the second chart below, we will observe that we score badly on factors like life expectancy, corruption and generosity. These factors may not be as easily measurable like per capita income and are largely perceptual, but strong enough to take our score down. Also, the dystopia score is significant enough implying an undercurrent of social stress, possibly amongst certain communities.

     

     

    How are these two reports interdependent? Happiness is an active ingredient for trust. The lack of the first leads to increased scepticism and therefore the tendency to discount what you consume as news. You may put up a brave face in one report but the mask comes off in the other one.

     

    You posture to amplify the news that you opt to believe in as it shows you in better light. That is a fundamental defence mechanism, borne out of deep down insecurity and an inferiority complex. It is not that you openly consume and debate all sorts of news and digital content to logically establish that you are in the right. Similarly, you pose as happy, taking selfies next to objects, visiting places or doing things that take you away from your uncomfortable harsh reality. When it comes to responding to a survey, your disappointments with aspects of life around you get exposed. It is not the proverbial bed of roses.

     

    No external intervention can work in this case. Only a slow and gradual improvement in collective consciousness can shake the citizenry out of this sucrose-induced slumber.

     

    As a common citizen, you too are consuming enough sugar without even admitting to yourself. That is far worse than the media magnate spinning fake stories to drive you into a frenzy.

     

    The festival of democracy is less than a month away. Look before you leap.

    Jai Hind!

     

    Avik Chattopadhyay is a Gurugram-based brand and business strategist and commentator. He is currently also working along with XLRI to set up the Indian School for Design of Automobiles. He writes on MxMIndia every other Thursday. His views here are personal.

  • Canva releases its second annual Visual Economy Report

    Canva, the popular online design and visual communication platform, released its second annual Visual Economy Report featuring insights from more than 3,700 global business leaders on the drivers and impact of visual communication.

    The company commissioned business intelligence firm Morning Consult to understand how they’re approaching the use of visual communications tools in the workplace and the role AI is playing in their ability to increase productivity, elevate creativity, and streamline workflows. The survey was conducted in 12 markets, including India, the US, UK, France, Germany, Spain, Brazil, Mexico, Indonesia, Japan, South Korea, and Australia.

    The top findings from Indian respondents include:

    Unlocking business benefits: Nearly three-quarters (73%) say visual communication tools have increased business performance. From accelerating content creation and team collaboration to stronger audience engagement, visual-first communication is supercharging how organizations save time and money. As a result, 70% of leaders are investing more in visual communication tools than the previous year.

    AI fast tracks productivity: Tighter budgets and increased content demands have led 89% of leaders to explore AI-powered tools as options to accelerate their content production needs. The vast majority (92%) agree the quality of visual content has improved because of AI, yet concerns about plagiarism (80), bias (84%), and job loss (81%) linger.

    Design democratized: The ability to communicate visually is now table stakes in the workplace, regardless of role. The majority of leaders (97%) expect employees in non-design roles to possess some design acumen in order to be effective communicators in their organizations. Consequently, more than two-thirds (67%) are now providing training to those not in design roles to meet a certain threshold of design competency.

    Accelerating scaling through collaboration: More than one-third (41%) of leaders believe the inability to collaborate across teams and complex workflows (38%) is a challenge when creating and scaling content. As a result, when investing in visual communication platforms, business leaders are emphasizing real-time collaboration (96%), more streamlined workflows (95%), and all-in-one functionality (95%).

    Creativity needs the right tools to flourish: 85% believe senior stakeholder resistance to new technology is hindering creativity in the workplace. 82% attribute siloed teams and poor cross-functional collaboration as deterrents to imaginative thinking and fresh outputs.

    From compelling presentations to engaging videos and interactive data visualizations, visuals have become the currency of communication, enabling organizations to cut through the noise.

    Said Rebecca Janes, Creative Designer and Environmental Branding Strategist, FedEx Global Brand: “We use Canva for just about anything that is templatized, from presentations to digital signage, internal websites, invitations, playbooks – the possibilities are endless. The ability to easily collaborate and share designs across so many teams has been a huge timesaver. What would normally take days can take only minutes.”

    The Visual Economy Report surveys 3,707 business leaders in marketing, sales, human resources, and operations who have knowledge of company revenue goals. This group also influences their organisations’ audience engagement strategy and how internal teams communicate with each other, other teams, and the company at large.

  • Google, Tata Motors, Amazon, Jio & Apple Most Inclusive Brands in India

    Google, Tata Motors, Amazon, Jio & Apple Most Inclusive Brands in India

    Leading marketing data and analytics firm Kantar has launched its Brand Inclusion Index (BII), a global study which reveals that 75% of consumers say that a brand’s diversity and inclusion reputation influences their purchase decisions.

     

    A staggering 68% Indians claim to have been discriminated against, and in majority of cases in commercial places and brand touchpoints, which is substantially higher than the global figure which stands at 46%. The study also showcases that DEI is important for an overwhelming majority of Indians, both in life and while making brand choices, with 86% of respondents.

     

    The first edition of India Brand Inclusion Index study explores skincare, banking, automotive and Technology categories. In its Index of the world’s most inclusive brands, Kantar ranked Google, Amazon, Nike, Dove and McDonald’s in its global top five while in India, it is Google, Tata Motors, Amazon, Jio and Apple. The brands were recognised by consumers for setting a positive example by demonstrating a genuine commitment to diversity, equity, and inclusion (DE&I).

     

    The study identifies that inclusive marketing is a significant opportunity to drive brand growth. It is clear that brands who fail to address discrimination, risk alienating a significant portion of their customer base. Despite progress made by some brands, the Brand Inclusion Index 2024 reveals a significant inclusion gap that businesses must address. This gap is the difference between the proportion of people in a market who have experienced discrimination and the percentage who believe in the importance and influence of diversity and inclusion.

     

    Kantar’s Brand Inclusion Index 2024 is a survey of more than 23,000 people in 18 countries, the India leg comprises 1000-plus respondents with an inclusive demographic which is gender expansive, disability, socio-economic class, religion etc.

     

    The findings of the Brand Inclusion Index sit in the context of preliminary research from the Unstereotype Alliance with Oxford University’s Saïd Business School, using data from Alliance members including Kantar. This study has found that progressive, inclusive advertising drives a significant sales uplift of over 16% when compared with less progressive ad content and has a significant impact on consumer loyalty, buying intentions and a brand’s pricing power. Respondents assess brands on different dimensions – brave brand DEI strategy, diversity, equity, and inclusion – from the absence of negative actions, to the presence of positive initiatives.

     

    Key findings:

    • There’s an urgent need for brands to address DE&I failures: A staggering, 68% Indians claim to have been discriminated against, and in majority of cases in commercial places and brand touchpoints, which is substantially higher than the global figure which stands at 46%. The study also showcases that DEI is important for an overwhelming majority of Indians, both in life and while making brand choices with 86% respondents
    • Consumer expectations are high, globally: 75% of consumers globally say that diversity and inclusion – or a lack thereof – influence their purchase decisions
    • DEI is yet to make its mark on Indian advertising:
      • More women are seen in Indian ads than global average but they remain bound by traditional roles of homemakers and mothers (7% women are featured in non-traditional roles)
      • Fairness of skin may have transitioned to glow but skin colourism continues to exist in creatives
      • Sizes remain slim and small. (7% diverse body shapes)
      • Ageism dominates with 40+ women represented in less than one out of five ads (15% in India vs 26% globally)
    • Underrepresented groups are most vulnerable: Ad protagonists and characters in India are painted in broad strokes of what they, their homes, beliefs and lifestyles look like, ignoring ethnic minorities, LGBTQ
    • Ads that successfully portray people positively provide greater predicted ROI for advertising investment. There has been growth in the industry in positive portrayal of Males over the last year, but a drop in Female portrayal since last 2 years
    • Globally, people with disabilities and LGBTQ+ individuals report the highest rates of discrimination (81% and 62% respectively), emphasising the need for targeted efforts to create more inclusive environments and content
    • Google, recognised as most inclusive brand in India as well as globally. It emerges as a beacon of hope, ranked by Kantar as the most inclusive brand globally. Consumers, particularly in marginalised communities, praised Google for its unwavering commitment to DE&I in its internal policies, products and marketing, its authentic representation of people from all walks of life and its leading-edge innovation for inclusion
    • Alongside Google, Tata Motors, Amazon, Jio and Apple emerged in the top five winners in India. Category wise, the India top Brand Inclusion Index scorers are – Google (Technology), Tata Motors (Automotive), SBI (Banking), Dove (Skincare).

     

    Said Valeria Piaggio, global head of diversity, equity and inclusion at Kantar: “It’s a myth that inclusion marketing is about marketing to minorities. Inclusion marketing is expansive marketing. One of the fundamental ways to grow your brand is to predispose more people to it. Yet when brands exclude consumers – whether that’s because people don’t feel welcomed when shopping in stores or their advertising doesn’t reflect diverse communities – it’s an easy miss.

     

    “Millennials and Gen Z prioritise diversity and inclusion even more than other groups, and as these populations grow in size and buying power these issues will carry more weight. Brands will be rewarded if they stand by their values – especially in the face of vocal communities which stoke the culture wars by pitting minority groups against one another.”

     

    Said Soumya Mohanty, Managing Director & Chief Client Officer- South Asia, Insights Division, Kantar: “In a country of India’s size, the term under-represented groups can be misleading for brands to use as a guiding light. Minorities can translate into millions of people who may choose or not choose to buy your brand, based on how well they feel seen, heard and voiced in your brands. It is a business imperative for brands to prove that they are serious and committed about DEI. The Brand Inclusion Index – our breakthrough study on brand inclusion – gives clear indications of how to achieve the inclusivity imperative. Our analysis of what’s behind the most inclusive brands is that they all have three things: a well-thought-out DEI strategy that stems from company actions and is committed long-term, impeccable creative execution, and bravery. The element of bravery will be increasingly important. As in other moments in history, when there’s significant social change, there are groups of society that seek to maintain the status quo, feel threatened, and as a result, react loudly,” adding: “To avoid backlash, brands today need to be extra careful. Full inclusion needs to work at both ends of the spectrum: reaching out to underrepresented populations and making them count, while avoiding negative reactions from people who are used to seeing themselves well-represented by brands and don’t want to be left behind. This study brings understanding of how people perceive brands based on their DEI efforts, focusing on populations that tend to be excluded, underserved, or misrepresented. The Brand Inclusion Index gives marketers clear benchmarks for brand inclusion and inspiration from brave brands that are seen as diverse, fair, and inclusive.”