MxMIndia

Tag: fragmentation

  • With consumers of all ages embracing digital, the threat to traditional media is real, says Raman Kalra

    The Anchor: Raman Kalra on 5 reasons how tech is going to drive media and entertainment

    By Raman Kalra

     

    1. Always Connected

    The shift to connected devices disrupts established ecosystems and present opportunities to engage and monetize the content in very different manners. It is beyond than just being digital. Multitudes of technology platforms is fast becoming a reality providing seamless experience to the consumers.

     

    2. Target consumers based on their “digital personalities”

    Personalization of content is an ‘essential’ now to be able to garner the time and wallet share of the consumers, and thereby monetize the content. While most of the ecosystem players are yet to gear up for age based segmentation, it’s already becoming increasingly important to segment the consumers based on the individual behaviours. Social media adoption and influence is further making this element lot more critical. Media companies will have to invest lot more heavy for the Customer Relationship Management solutions.

     

    3. Substitution is real

    Fragmentation continues as consumers of all ages embrace these new experiences, substituting time spent with traditional media. With consumers of all ages embracing digital, the threat to traditional media is real and which brings with it the larger impact of the multi-billion dollar ad industry. As cannibalization percentage grows, more revenue will be at risk for broadcasting and print industries. Changing media consumption habits with time-shifting and place-shifting will further add to this challenge. Technology will bring a paradigm shift in the way audience measurements and readership surveys are carried out. This will eventually work towards a 360 degree view of the consumer behaviour.

     

    4. Cable Industry will see a big shift from B2B to B2C

    With ongoing digitization of cable industry, technology – both information technology and operational technology – will become critical to succeed in the changing B2C environment. Globally, cable & satellite companies have made their profits from VAS add-on offerings. It is vital for cable companies to start understanding this important aspect and invest in technology for organizational readiness from back end standpoint as well as in revenue generating technologies to lead the ARPU growth. Consumers are more than willing to pay more, if provided content of their interest and relevance.

     

    5. Its ‘Data’ flowing everywhere

    The media industry is increasingly driven by data, shaped in different forms including news, education, sports, entertainment, and so on, flowing in structured as well as unstructured form. Media companies would need technological solutions to be able to make the data useable to inspire customer actions such as: buy, subscribe, share, recommend, like, etc.

     

    Raman Kalra is Director & Partner, Communications Sector-Media & Entertainment, Industry Leader, IBM Global Business Services, India/South Asia

  • infrastructure, piracy, and a fragmented industry are some of the challenges facing content owners in the digital space, says Jai Maroo

    The Anchor: 5 Challenges for film & entertainment industry in the digital space

    1. Lack of Infrastructure:

    One of the major challenges in digital space is lack of infrastructure and poor internet connectivity. The problem of bandwidth has been there for some time now. We need better streaming solutions and internet penetration inIndia. With 3G, and now 4G, coming on the scene, though the initial rollout has been slow, all plans are geared for boosting rollout and hence consumption of entertainment on digital platforms is expected to get a boost.

     

    2. Fragmentation in the Industry:

    We have a fragmented industry in terms of sheer number of platforms and business models. In present scenario, there is no clear leader except a handful of them who are making profit. But with more investors in the space, we are seeing both, better quality platforms and more sustainable rollouts, which are further fuelling the consumers’ digital consumption habit.

     

    3. Menace of Piracy:

    Piracy is another menace that the industry has been fighting against. Some of the players in digital space, like YouTube for example, have been taking some strong measures to ensure that the legitimate owner of the content gets fair share of the revenue. Additionally, content owners are increasingly partnering with platforms and finding win-win partnership models and working together to build the consumers’ habit of legal content consumption.

     

    4. Technological Challenge:

    Content owner face a lot of challenges to digitize and re-purpose the content. Technologies are getting redundant at a faster pace. It is a challenge for the content owners to cope up with the fast-growing technology and avail their content in compatible format for a particular platform. However, players are emerging with the scale to be able to handle this fragmented consumption and build better and more sustainable revenue streams, and bring all the efficiencies of scale. This also gives opportunities to bring in innovation in the presentation of the product.

     

    5. Need for better equipments

    Another hindrance is slow adoption of newer and better equipment/ end user device to access video content. But, the variety of gadgets available in the market at reasonable price points and loaded features are expected to address the problem.

     

    Jai Maroo is Director, Shemaroo Entertainment