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Tag: CII National Committee on Media & Entertainment

  • Projects digital video and gaming to be biggest growth drivers

    CII-BCG Big Picture 2021 Report: ‘Way Forward for Indian Media and Entertainment Industry’

    By Our Staff

     

    The Confederation of Indian Industry (CII) and Boston Consulting Group (BCG) unveiled a report of the media and entertainment sector titled, ‘Blockbuster Script for the New Decade: Way Forward for Indian Media and Entertainment Industry’. The report explores the industry’s status after the impact of the Covid-19 pandemic and highlights key imperatives for achieving its potential over the next decade.

     

    Said K Madhavan, Chairman, CII National Committee on Media & Entertainment and President, The Walt Disney Company India and Star India: “It is delightful to see that the hard work put in by all stakeholders in the face of great challenges, both professional and personal, has paid off and now our industry is back on track. Media and entertainment played a crucial role in helping the country navigate and overcome this crisis and reinforced its role in people’s lives”. The report projects that the industry is set to grow to $55-70B by 2030 at a CAGR of 9-11%, with digital video and gaming being the biggest growth drivers.

     

    Commenting on the report, Chandrajit Banerjee, Director General, CII, added: “CII has maintained its thought-leadership in Media and Entertainment sector over the years through various measures. Industry as well as Government and policy makers value the inputs which CII initiatives add to the knowledge pool of the sector. The Big Picture report, released on the occasion of the CII Big Picture Summit every year, holds a special place in this resource ecosystem. This year’s report, once again put together by BCG with the help of CII Media and Entertainment Committee, looks at the decade ahead, will help businesses chart their growth path and aide the government in framing enabling measures to facilitate further expansion of the sector.”

     

    Said Siddharth Roy Kapur, Co-Chairman, CII National Committee on Media & Entertainment and Founder & Managing Director, Roy Kapur Films: “Film production and film exhibition were amongst the worst affected sectors in the M&E business due to the pandemic. After a long period of shutdown, cinema halls are now back in business with a bang. A record number of big-ticket movies are lined up for release well into 2022. That augurs well for the sector but caps on occupancies, closures of cinemas and modified audience behaviour might impact the speed of recovery. On the other hand, streaming has provided new avenues for screening and broad-based the options available for producers, artistes and technicians. Along with the rise of regional cinema, this marks the start of a truly fantastic decade ahead for the Indian content business. Kudos to team CII and BCG for another enriching edition of the Big Picture report.”

     

    Added Biren Ghose, Vice Chairman, CII National Committee on Media and Entertainment and Country Head, Technicolor India: “This year’s CII – BCG Big Picture report appropriately features the games sector in India captioned the “Future is play”. Despite sporadic regulatory hiccups, in some states, this segment is growing at around 30 per cent per annum which is the highest among the animation and visual effects (AVGC) sector. CII is confident that this report articulates the critical inputs to guide future policy thereby creating an enabling environment for industry to grow. The success of India’s media and entertainment will ultimately depend on the ability to scale world-class creative talent in order to capitalize on the global opportunity in this sector.”

     

    The report highlights the Media and Entertainment industry’s multimodal growth story. The Indian OTT sector is currently in the scaling stage with strong subscription growth and high investment in premium & original content. The sector is one of the most competitive amongst emerging markets with 40+ players representing all types of content providers. “Cord cutting” (cancelling TV subscription and moving to OTT) is in nascent stages and is expected to be limited in the medium term. Said Mandeep Kohli, Managing Director and Partner, Boston Consulting Group India:  “The share of traditional media is slowly declining with increased digital adoption but there is still high headroom for penetration with only 54% of Indian households having a pay TV connection compared to more than 70% in China. For many households, TV continues to be the center of the home and a significant part of family time.”

     

    As was the case with other industries, the past year has been a challenging one for the media and entertainment industry. However, the industry has shown remarkable recovery with TV ad volumes bouncing back to pre-COVID levels and expected to continue growing in the future, driven by increased advertising on regional channels & entry of new advertisers. AVOD is now one of the fastest growing ad segments in India driven by interactive ad formats, blending of content and ads and the rise of short form AVOD platforms.

     

    One of the major themes in this year’s report is the industry’s anticipated transformation over the next decade. The Media and Entertainment industry is at a critical juncture of transformation, offering rapid growth in some areas. “To realise this growth, companies must tweak their strategies to take advantage of the current market situation. In addition to investing in content and technology to improve user experience, companies should also leverage suitable distribution models to enhance reach, focus on providing integrated ad solutions and offer innovative marketing formats to enhance the value proposition to advertisers,” explained Kanchan Samtani, Managing Director & Senior Partner, Boston Consulting Group India.

     

    Setting the tone for the coming years, Madhavan added: “Our industry has always been at the forefront of disruption and we will continue to innovate over the next decade. We will now need new answers and will need them fast, even on the most fundamental things like talent pool to run our companies and methodology for measuring the impact we are delivering to advertisers on our platforms. We will need to continue to embrace change going forward to create the most value for consumers as well as our partners.”

     

     

  • Text of the welcome address by Sudhanshu Vats, Viacom18 Group CEO and Chairman, CII National Committee on Media & Entertainment

    Thinking beyond 2020: Viacom18 Group CEO Sudhanshu Vats at CII’s Big Picture Summit

     

     

    Sudhanshu Vats

    Text of the welcome address by Sudhanshu Vats, Viacom18 Group CEO and Chairman, CII National Committee on Media & Entertainment

     

    Honourable Minister of State for Information & Broadcasting, Shri Rajyavardhan Rathoreji, respected panellists on the dais and valued members of the audience. It is my pleasure to welcome you all to this year’s edition of the Big Picture Summit.

     

    To start with, I have a disclosure to make. Disclosures are important, no? Particularly for media organisations. I have been in an extremely introspective mood and therefore what you’re about to hear might sound like a discourse on philosophy. The good news, however, is that I’m going to be extremely candid. It’s always a challenge to address a gathering of this nature. A gathering where leading minds from the private, public and academic sectors converge to paint the ‘Big Picture’.

     

    This event is one of the first events that I attended after entering our sector and it’s particularly close to my heart. If I can make an honest confession, I’d say that I spend much more time thinking about my speech for the Big Picture Summit that I do for other conferences. This time however, I took the exercise one step further. I went back and looked at almost all the speeches I’ve delivered since the turn of this millennium, first as an FMCG veteran and then as a media professional. You’ll be surprised to know what I found! One of the very first speeches I can recall was at HUL in 2000, my former organisation. I was addressing a bunch of analysts and spoke with great gusto about the organisation’s vision for 2020. There were a few more that I made around 2003-2005 – including some at my alma mater – IIM Ahmedabad and I referred to 2020 again as a benchmark year. Finally, since 2012, whichever industry event I’ve been a part of- Big Picture, FICCI, CASBAA, IDOS- you know the grind- 2020 has been the year at which most predictions stop.

     

    This got me thinking. Thinking hard. I wondered: Have my colleagues and I run out of imagination? Have we become too old to see beyond 2020? Has the internet made us all ‘intellectually lazy’?

     

    Trust me, my mind looked in several directions. Finally, the answer struck me. As ironical as it sounds, the future has become shorter. For the sake of clarity, look at it this way: 20 years ago, it took maybe 15 years for ‘x’ number of disruptions, 10 years ago it only took, maybe 10 years for the same number i.e. ‘x’ number of disruptions. Today, it only takes 5 years for the same number of disruptions. So, in a manner of speaking, our definition of the future has become more ‘condensed’.

     

    This very reality has enormous implications for all of us. 

     

    For private sector organizations, we need to improve our time-to –market for new products and services, we need to be able to quickly take aim, fire and reload, before repeating the process.

     

    For the world of academia, the sheer amount of throughput needs to increase. R&D cycles need to have shorter durations and allow for mid-way course correction. Inter-disciplinary learning is another area of focus. Several worlds are converging and academic disciplines should be no exception.

     

    For the government, and Rathoreji can shed more light on this, the public want the entire government machinery to be able to deliver on its expectations, sooner than they did before. This also means that policy roadmaps have to get shorter. Given the complexity of the Indian market, if we can’t crunch these roadmaps we need to at least ensure that we stick to them. The duration of political lifecycles generally hover around five years, now you see news channels looking at one year, 100 days and even one-month report cards! Sometimes I feel that the government faces more pressure from the electorate than public companies face from their investors for quarterly targets!

     

    It’s very important to understand these implications because when the public, private and academic worlds align, magic is created. We talk of USD ABCD billion as a target and so on and so forth. It’s simply a fictional goal post if we can’t get different stakeholders to work together. I understand the theme of this conference is aiming for a 100 billion USD target for our industry, but I’d like to challenge the status quo by asking a fundamental question that I hope you can ponder over these two days: what defines our industry? If our audience is empowered to buy the dupatta worn by Ragini while watching Swaragini on Colors on their mobile phones, how will it impact our target?

     

    I’d like to leave you with a way of thinking that I believe can be applied to any M&E organisation, irrespective of the sub-sector i.e radio, TV, digital etc.. It’s arguably a much simpler definition of our value chain. There are only three participants in this value chain: creators of content, content platforms and communities. Advertisers don’t need to be called out separately as they too are a community. All of these sit on the foundation of a regulatory framework created by the government. What’s even more interesting is that this value chain is no longer, necessarily linear. All three participants can interact with each other in different ways. An organisation’s understanding of where it fits in this value chain has a lot of bearing on the capabilities it needs to build and invest in.

     

    Content creators have to look at nurturing a dispersed universe of storytellers that is talented, loyal and always engaged. Platforms have to make investments in technology that allow them to reach out to communities. Communities are almost the reason as to why most of us exist, whether it’s our audiences or our advertisers. We have to figure out way of getting them closer to one another and developing a constant feedback loop mechanism to make our engagement more fruitful. Most importantly, we have to look at a voluntary, self-regulation framework in terms of what should be allowed and what shouldn’t – for advertisements and content.

     

    Thank you all for making it here today and for your undivided attention. You have invested valuable resources to be present for Big Picture 2015. The team from CII has curated an extremely insightful set of sessions for you. Ladies and gentlemen, I urge you, do take this unique lens as you participate in these sessions. The world of ‘realisable possibilities’ has just exploded. The Future has become shorter and our canvas has gotten bigger. Welcome to Big Picture 2015!