ITV

Tag: Cord-cutting

  • PWC India & Indian entertainment & media growth projections for 2024-28

    PWC India & Indian entertainment & media growth projections for 2024-28

    MUMBAI: In July this year, PWC Global released its Global Entertainment & Media Outlook 2024-2028 which focused on global trends and growth. With the year coming to an end, PWC India decided to revisit Global Entertainment & Media Outlook 2024-2028  but from an India perspective. And here are  some of the data  points as sent out in a press release by PWC India. 

    PWC India believes that the Indian E&M industry is projected  to grow at a CAGR of 8.3 per cent to hit Rs 3,65,000 crore ($ 19.2 Billion) outpacing the 4.6 per cent global rate..

    Despite economic challenges and geopolitical tensions, global E&M revenues grew 5.5 per cent year-on-year, from Rs 13,891,000 crore in 2022 to Rs 17,359,000 crore in 2023. Currently, the US leads the global E&M market by revenue, with China in the second place and India at the ninth spot.

    PwC India chief digital officer & TMT leader Manpreet Singh Ahuja commented, “India’s entertainment & media sector is on the cusp of a major transformation. According to our report,  key growth drivers such as digital advertising, OTT platforms, online gaming, and generative AI are shaping the industry’s future. These rapidly expanding segments are positioning India as a global leader in innovation and growth. Businesses that adapt and innovate in these areas are poised to seize unparalleled opportunities in this dynamic landscape.”

    With India’s improved connectivity, rising ad revenues and favourable government policies around foreign direct investment (FDI), the country is predicted to see one of the highest growth rates in the next five years.

    The country’s large millennial and gen-Z population base of over 910 million has access to the world’s cheapest data costs. At present, India has 800 million broadband subscriptions, 550 million smartphone users and 780 million internet users. In fact, Indians are spending 78 per cent of their time on mobile phone apps related to E&M. Leveraging India’s strong growth trajectory in the E&M sector, the Indian government is set to host the inaugural Waves – a summit,  in the hope of boosting its E&M sector globally through stakeholder collaboration and innovation.

    With growing consumption and gross domestic product (GDP) growth in India, the ad market is projected to grow at a 9.4 per cent CAGR from Rs 1,01,000 crore in 2023 to Rs 1,58,000 crore in 2028, which is 1.4x the global average. Most of this growth will come from the digital front (internet advertising), which is expected to grow at a 15.6 per cent CAGR, rising from Rs 41,000 crore in 2023 to Rs 85,000 crore in 2028.

    Internet advertising’s year-on-year growth, which was 26 per cent in 2023, will remain in double digits throughout the forecast period (2024–28), and is expected to be 12.2 per cent in 2028.

    The shift towards cord-cutting is expected to accelerate. Traditional TV advertising will grow at a 4.2 per cent CAGR between 2023 to 2028, while global revenues are set to drop by -1.6 per cent. India is poised to become the fourth-largest TV advertising market by 2026.

    As per the 2024 outlook, other subsectors will also witness growth that surpasses global averages:

    * The total online gaming and esports revenue in India stood at Rs 16,480 crore in 2023 and is expected to reach Rs 39,583 crore by 2028, growing at a CAGR of 19.2 per cent. With the inclusion of real money gaming (as per PwC’s India Gaming Report ‘24) the total gaming and esports revenue would amount to Rs 33,000 crore ($ 4 billion) in 2023 and is expected to reach Rs 66,000 crore ($8 billion) by 2028 at a CAGR of 14.5 per cent. Globally, video games and esports revenue will increase at a CAGR of 8 per cent.

    * Over-the-top (OTT) will be the third-fastest growing segment with a CAGR of 14.9 per cent, putting the country in lead by 2028.

    * Infrastructure enhancements have supported massive growth in India’s out-of-home (OOH) advertising market which grew by 12.9 per cent in 2023. It is expected to continue to grow at a 7.6 per cent CAGR.

    * When it comes to print advertising revenues, despite a global decline at a CAGR of -2.6 per cent, India’s market is expected to grow at a rate of 3 per cent, making it the third  largest print market in the world by 2028

    * India’s cinema market continues to expand, growing at a 14.1 per cent CAGR.

    * The total music (live, recorded and digital) revenue grew from Rs 2,416 crore ($293 million) in 2019 to Rs 6,686 crore ($811 million) in 2023. It is expected to cross Rs 10,899 crore ($1.3 billion) by 2028, growing at a CAGR of 10.3 per cent.

    * At a 5.6 per cent CAGR, India will stand out as having the highest B2B revenue growth rate in the world over the next five years. In contrast, global B2B revenue growth is forecasted at a 1.9 per cent CAGR.
    The report highlights four key opportunities in the E&M sector.

    Internet advertising emerges as the fastest-growing market in Asia-Pacific and the second globally, with a projected 15.6 per cent CAGR (2023–2028). Companies can prioritise regulatory compliance and leverage data analytics to enhance trust and implement targeted advertising strategies.

    OTT platforms in India, the world’s fastest-growing, saw a 20.9 per cent rise in 2023, reaching Rs 17,496 crore ($2.1 billion), and are projected to double by 2028 (14.9 per cent CAGR). Focusing on advertising-supported tiers, market consolidation and regional narratives can boost engagement.

    Online gaming and esports are rapidly expanding, projected to represent nine per cent of the E&M sector by 2028. Promoting responsible gaming and investing in high-quality AAA games will position Indian studios on the global stage. Lastly, generative AI (GenAI) is set to transform content creation, personalisation and monetisation, with over 70 per cent of global companies expected to adopt it by 2025. Early adoption of GenAI in India can drive hyper-personalised content and dynamic advertising campaigns.

    The report also outlines strategic approaches for companies to enhance success. It recommends consolidation among regional or niche players through mergers and acquisitions to increase size and scale. It highlights the use of social media for marketing and distribution, as media companies leverage these platforms for content promotion.

    The report suggests innovation in content strategy, including esports, online gaming, and indigenous sports to meet changing consumer behaviours. It advises investment in cost optimisation through analytics, audits, and automation to lower operational and production costs. Finally, it points to the use of GenAI for creating hyper-personalised content discovery and improving user experiences, especially for regional players aiming to match the technological capabilities of global peers.
     

  • OACT2021: The evolution of Connected TV in India

    OACT2021: The evolution of Connected TV in India

    Mumbai: The addressable connected TV (CTV) advertising universe is estimated at six to eight million, according to mediasmart, an Affle company, India and SEA, senior director- brand and strategy Nikhil Kumar.  The CTV evolution has arrived in India. Today, you can easily join the CTV ecosystem via a smart TV, dongle, gaming console, or connected set-top-box (STB).

    Kumar was addressing the ‘OTT Advertising and Connected TV Summit 2021’ organised by Indiantelevision.com on 7 October. The two-day event is co-powered by mediasmart, an Affle company and summit partner – The Q. Stakeholders across the industry engaged in insightful discussions on the dynamics of OTT and CTV advertising.

    The growth of CTV in India is driven by several factors. Chinese manufacturers have played a pivotal role by introducing low-cost smart TVs for as much as Rs 15,000. Low-cost dongles like Amazon Firestick and Google Chromecast are popular ways to access web content. Jio has led the adoption of connected STBs. These technologies have driven the penetration of the CTV market to a point where you don’t necessarily have to be from a metro or Tier-1 city to be a part of the CTV ecosystem. According to a report by Counterpoint Research, India’s smart TV market saw 65 per cent year-on-year growth in Q2 2021 due to increasing demand.

    Some may conflate over-the-top platforms with CTV but they are completely different ecosystems. While OTT can be seen as a subset of the CTV ecosystem, its journey began almost two decades back with Netflix. Certainly, a majority of the usage on CTV is driven by OTT viewing. A report indicates that 91 per cent of users watch movies on CTV, there is also a small but growing audience that is listening to music, playing games, and catching up on the news.

    “CTV is reaching an incremental base of evolved users who have come into the ecosystem to enjoy everything that the internet has to offer,” said Kumar, adding that the pandemic has played the role of a catalyst for CTV.

    “People confined at homes realised that linear TV was mundane because of repeated content and were looking at new ways to entertain themselves,” he added. It helped that India has the cheapest data costs in the world at $ 0.09 per Gb. A survey showed that 78 per cent of smart TV users were accessing the internet via direct apps instead of search and discovery platforms.

    Even though the base of CTV was nascent compared to other media, mediasmart was excited to tap into the opportunity. “We’ve always been a platform that’s believed in strong digital ownership of the consumer journey,” said Kumar.

    The company did not look at CTV in isolation. When it targeted a CTV household, it assumed that there were three to four members in the household who owned a smartphone. They developed a technology system called ‘Household Sync’ that maps the user journey on CTV and mobile.

    Marketers have always bifurcated between brand and performance, opined Kumar. “Here’s a technology that puts your brand advertising on the largest screen possible but also delivers middle and bottom-funnel conversions, so it takes you across the entire funnel. At mediasmart, we’ve always valued metrics such as cost per conversion and verticalisation approaches.”

    mediasmart’s solutions looked at delivering immediate action-oriented feedback to advertisers on the brand impact. Their platform allowed them to look at completion rates on TV followed by retargeting on mobile devices. It also let them measure click-through rates to analyse if the brand was reaching the last mile. “Ultimately, what every brand is concerned about is the bottom-funnel,” opined Kumar.

    The CTV market is growing in double-digits month-on-month that will lead to an increase in users, advertising penetration, and reach. In markets like the US, the share of video impressions on CTV is as high as the share of video impressions on mobile. While the US was never a major mobile market, unlike India, Kumar explains that the opportunity is still attractive because even though the base is small, the impact is large.

    He added, “There is a lot of headroom for CTV to grow in India. There is still a significant base of box TV users in India who may potentially migrate to low-cost smart TVs. Apart from cord-cutting, there is a whole new generation of ‘affluent cord nevers’ who are opting for CTV systems over DTH and cable connections.”

    (Source: India CTV Report 2021 by mediasmart, an Affle Company, VTION, and Interactive Avenues)

    For more information: https://indiantelevision.com/events/oact-summit-2021/

  • Changing consumer behaviour as viewership spikes on ZEE5

    Changing consumer behaviour as viewership spikes on ZEE5

    MUMBAI: The current Covid2019 pandemic and the nationwide lockdown has not just stalled industries and economic activity but has also contributed to the ongoing change in behavioural patterns in people, including that of digital consumption. The restrictions on social interaction imposed by the government in response to the pandemic had already led to an increase in video viewership on OTT platforms. The lockdown led to more people inadvertently realising the convenience of OTT, which has shifted the way content is consumed on a day-to-day basis.

    With Unlock 2.0, production studios are coming back to a new way of shooting; thus ensuring consumers get their daily dose of entertainment. With regional language channels launching new shows which are being shot in smaller towns to new episodes of old shows, viewership is growing week on week. ZEE5, India’s No.1 Contech platform, has observed a phenomenal spike in viewership as consumers consume more content on the platform, with the new Unlock!

    Viewers bounce back:

    As TV shows gear up to launch new episodes from 13 July, ZEE5 has observed a +52 per cent Week on-Week growth in video views across majority of languages. Shows such as, Rahichi Rahibi Tori Pain, Pavitra Rishta, Vedh Bhavishyaacha, Ninne Palladhata and many shows across Hindi, Oriya, Marathi, Kannada etc have observed a massive jump in video views. 

    With the increase in demand for digital content, more and more households have invested in Connected TV (CTV) devices like Apple TV, Amazon Firestick and Smart TVs. These devices provide regular televisions with internet access to stream video content on OTT platforms. 

    The Rise of Cord Cutting and Cord Shaving

    Cord cutters are viewers who have cancelled paid multichannel subscription services like cable or satellite television. Cord shavers are viewers who have downgraded their TV packages, replacing those reduced services with on-demand video streaming services.

    In a survey carried out by Eros Now and KPMG in September 2019, involved 1458 OTT users from 10 cities in India, revealed that 10 per cent of respondents prefer watching original content online. The report also revealed that OTT video could usher in cord cutting sooner than expected. While 38 percent of the respondents could consider cord cutting in the future, 14 percent of the respondents considered subscribing to OTT platforms as an alternative to TV subscriptions. 

    As more and more consumers decide to reduce or cancel their TV subscriptions to consume content on OTT, this has led to a rise in cord cutting and cord shaving. 

    The lockdown has driven this behavioural change into permanency and now manifests itself in viewers consuming old and new TV content again across all apps.

    With three out of ten respondents viewing online video on telco platforms, also proved the importance of Telco platforms for the distribution of online video content. A recent study by YouGov (Feb 2020) suggested, that 42 per cent people spend time watching catchup content on OTT platforms while only 18 per cent prefer watching TV. The same report also mentioned that 72 per cent urban Indians prefer video on demand as compared to cable TV.

    A large part of the TV viewing audience has migrated towards consuming content on digital-only platforms like OTT. The above table shows 10 shows which are produced for TV and are also available on ZEE5. Majority people have watched the episode on ZEE5 as compared to TV. This rise in viewing content online has opened new doors for advertisers. As more and more people move towards ZEE5, advertisers can use this opportunity to reach more people by leveraging ZEE5 content to increase their market presence. 

    Opportunity for Advertisers

    As consumers adapt to the new way of living, they will likely continue to stream OTT content for the majority of their at-home entertainment. Hence OTT is becoming mainstream for most advertisers as the platforms are brand safe, have higher ad completion rates and cost per effective reach for the brand. As viewership increases, ZEE5 is the destination for brands to advertise which provides incremental and targeted reach through transparency in measurability.  

    ZEE5, Contech leader in this space, provides unique targeting through one on one targeting, lifestyle-based cohort segmentation and a powerful suite of Ads format to engage audience depending on business objective across an entire device ecosystem.

    Learn more about OTT advertising and how this strategy could be implemented for your business by getting in touch with ZEE5 Ads.