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Tag: Media Partners Asia

  • Kelly Day shares her views on Prime Video’s customer-first strategy globally

    Kelly Day shares her views on Prime Video’s customer-first strategy globally

    Mumbai: In a fireside conversation at APOS Bali (Indonesia) 2023, created and curated by Media Partners Asia (MPA), Prime Video VP international prime video Kelly Day shared her views on Prime Video’s customer-first strategy globally. “As a customer-first organization, delivering great content selection, convenience of accessing the expansive content offerings and customer value, act as the major differentiators for Prime Video globally. Our mission is to become the one-stop entertainment destination, a place where customers can find all of their video entertainment under one roof, be it content produced by us or by other studios, content from our partners such as Paramount+, HBO Max, Starz, BritBox, accessible through Prime Video Channels, or titles to rent or buy via our TVOD Store; or fast channels, linear channels, AVOD channels that we have in many locales. So, we’re really trying to deliver the maximum selection possible.”

    Underscoring the investments Prime Video has made on behalf of customers worldwide, Kelly went on to share that since early 2022, Prime Video has been delivering even more variety and value through Original content, having launched 280 local Original titles across 25 countries. The service is further complementing this by bringing an incredible selection of content to the service through TVOD and Channels, with over 500 channels partners around the world, delivering incredible value to customers.

    On the importance of building local content offerings, Day shared, “We do not want our customers to see Prime Video as one homogenized, global service. For each of our geos, we want customers to consider it as a local experience, but with all the benefits of getting a credible technology platform, with great global Originals and other acquired content. Japan and India are two great examples where we have deeply invested in building an extensive array of local, authentic content that resonates with the customers.”

    Talking about the role of international content as a growth engine, Day elaborated, “Original content is a key pillar of growth. Over the last few years, we have invested in a lot in our big/key tentpoles, The Lord of the Rings: The Rings of Power, The Wheel of Time, Reacher, Citadel, and Jack Ryan, and these titles really resonate with our Prime customers globally and we see these working in almost every country around the world. That’s really what brings people into Prime Video, and once we have them engage with the service, then there is so much more that they can explore, whether it is licensed content such as Yellowstone or The Last of Us or Barbie or Super Mario Bros. Movie. And that is what we are really focused on trying to provide at Prime Video – a very personalized and engaging experience so that whenever customers come to the service, they are always going to find something that works for them, that they want to watch.”

    “We see the APAC region offering an incredible subscriber growth opportunity with the high-quality content engine we are developing across Asia. Be it Japanese Originals, Indian movies and series, Korean dramas, and much more, all this is resonating with customers not only in the local markets but across the world. Not just Asia, international content from Spain and Argentina is increasingly becoming popular with customers, including English-speaking markets such as the US, Canada, the UK, and Australia, to name a few. Customers from these locales are truly embracing the authentic, engaging, quality storytelling coming from all over the world.”

    Identifying Japan and India as the key growth drivers in the region and the potential in the Asia Pacific region, Kelly said, “We are relatively new in Southeast Asia and are in different phases of maturity in different countries. Japan is one of our most mature locales, India has been a huge growth driver over the last couple of years, in other markets we are just getting started, but we are incredibly excited by the opportunity here.”

    Day signed off by saying, “We really want to be a singular entertainment destination where customers can find amazing content at an incredible value, great price, in the convenience of really having one place to go. We want to deliver a very personalized experience with an easy to use, single billing application that just makes it easy for customers to navigate everything that’s out there and find something worth watching.”

  • APOS: The future of streaming

    APOS: The future of streaming

    Mumbai: APOS, the defining voice and global platform for the Asia Pacific media and telecoms industry, took place from 26-28 September 2023, at the Ayana Estate in Bali, Indonesia.

    Created & curated by Media Partners Asia, APOS is the ultimate destination for deals, partnerships and thought leadership with a focus on content, connectivity and commerce sectors.

    APOS was established in 2010 and is attended by global, local, and regional industry leaders.

    On the first day of the conference, on the topic ‘Perspectives on ‘The future of streaming’, Udhay Shankar, co-founder of Bodhi Tree Systems and director of Viacom18, advocated for JioCinema as the future alternative to television. In a discussion with MPA executive director Vivek Couto, Shankar emphasised the need for a comprehensive, centralized service to cater to India’s vast social and linguistic diversity. He suggested that JioCinema could offer a wide range of content and create an alternative to traditional television.

    Shankar also expressed his optimism about advertising-supported video on demand (AVOD) and stressed the importance of reaching non-paying AVOD viewers, considering India’s diverse audience.

  • APOS: Perspectives on the advertising economy & role of video

    APOS: Perspectives on the advertising economy & role of video

    Mumbai: APOS, the defining voice and global platform for the Asia Pacific media and telecoms industry, took place from 26-28 September 2023, at the Ayana Estate in Bali, Indonesia.

    Created & curated by Media Partners Asia, APOS is the ultimate destination for deals, partnerships and thought leadership with a focus on content, connectivity and commerce sectors.

    APOS was established in 2010 and is attended by global, local, and regional industry leaders.

    In a one-on-one conversation with Snap Inc president APAC Ajit Mohan on ‘Perspectives on The Advertising Economy & Role of Video’, here are his views on the same.

    On the topic of significant changes, Mohan said, “I believe that Snap represents a major shift in how people, especially younger generations, communicate. It’s evident in the creative world and the essence of authentic and private communication it offers, which is increasingly valuable in today’s world.

    Snap is currently at a pivotal stage in its journey as a 12-year-old company with a substantial and rapidly growing community of around 750 million users. This community predominantly consists of younger individuals who grasp the value proposition. However, we haven’t yet built a business that matches the scale of this community.”

    When asked about the exciting opportunities, Mohan replied, “I see an exciting opportunity in this part of the world, where I believe the next phase of innovation for the company can originate. Asia holds great potential, and I’m enthusiastic about what lies ahead for both Snap and our community.

    On APAC, Mohan said, “Our focus on APAC over the past four to five years has primarily centered on Australia, India, and Japan, with limited exposure to China. However, we are now gaining traction in countries like the Philippines, Indonesia, and Malaysia. As a relatively smaller company competing with tech giants and media conglomerates, my priority over the next 12 to 18 months is to ensure the sustained growth we’ve witnessed in these regions.

    For instance, in India, we’ve gone from zero to 200 million users in just two and a half years once the community grasped the visual, fun, and highly private nature of our platform. It’s clear that when our proposition resonates, and we achieve a certain scale, growth takes off.”

    On the other markets in the world, Mohan said, “My objective is to replicate this success in regions like Europe, the US, Southeast Asia, and North Asia. Much of our current efforts are focused on product localization and tailoring our approach for the specific needs of each community. Deeply localizing our proposition, while challenging, is a crucial step in our journey. This approach sets us apart from other tech companies and aligns with our commitment to delivering value to diverse audiences across the globe. Exciting developments are unfolding in Asia as we work towards these goals.”

    On revisiting the fundamental essence of why Snap makes sense, Mohan said, “It all begins with our unique concept—the app opening to the camera, enabling users to authentically express themselves within a close-knit circle of friends and family. This emphasis on privacy and authenticity sets us apart and was conceived as a counterbalance to traditional social media.”

    He went on to add, “This starting point has spurred much of our innovation around cameras and lenses. Younger generations use the camera as their primary mode of communication, creating lenses and augmenting their visuals to engage throughout the day.”

    Earlier this year, we introduced an AI Chatbot experiment, My AI, in the messaging context. Surprisingly, over 150 million users quickly embraced this service. It revealed that people not only desire interactions with friends and family but also value conversational AI that harnesses the potential of advanced language models.

    On venturing into the AR, Mohan stated, “We’ve also ventured into the realm of dreams, where Augmented Reality (AR) takes center stage. With approximately 250 million Snapchatters actively using AR, we possess one of the world’s largest AR communities. Recent developments in AI have presented exciting opportunities, such as creating stylized images of oneself and collaborating with friends in this creative process.”

    He further added, “In this context, it’s essential to understand that AI and machine learning have evolved beyond mere content matching. While technology and media companies have historically used tech for content recommendation, we’ve reached a stage where we’re redefining the conversation. Our innovation revolves around enhancing the user experience within our beloved community, leveraging advances like conversational chatbots and general AI capabilities to keep the conversation authentic and engaging.”

    Snapchat’s AR features have revealed an interesting trend, particularly among our younger user demographic. Many of them use AR to virtually try on clothing and shoes, suggesting a strong appetite for this kind of interactive experience. Consequently, numerous brands are engaging with our community to bring these try-on experiences to Snapchat.

    Our decision to explore taking these capabilities beyond the platform aligns with our ongoing investments in AR. We recognize that this opens up various possibilities for us to explore.

    We’ve reached a significant milestone in terms of the size and loyalty of our community. With a strong focus on privacy and authenticity, especially catering to the younger demographic prevalent in this region, we’ve established ourselves as an innovative platform. However, we acknowledge that we’ve been somewhat less successful in building a robust monetization engine around it. Over the past two years, we’ve been working diligently on improving performance and optimizing the platform for advertisers. We’ve seen early positive results, and given the rapid innovation happening in this region, we’re optimistic about the growth opportunities.

    Our strategic approach involves diversifying our revenue streams. The launch of Snapchat Plus, a subscription service offering early access to products and features, has exceeded our expectations, recently surpassing five million subscribers. Additionally, we’re exploring opportunities in the ever-evolving retail and e-commerce landscape. Our community, primarily aged 30 to 34, is open to discovering new categories and products, making us well-positioned to tap into the thriving retail and e-commerce industry catering to millennials.

    Our key priorities and pillars of growth for 2024 are as follows:

    Maintain Momentum: We aim to sustain the impressive momentum we’ve achieved in countries where we’ve rapidly gained traction, such as India and Australia. This includes continuing to scale up our business, which is part of our global agenda.

    Focus on APAC Agenda: The Asia-Pacific (APAC) region presents unique opportunities and challenges. We have a specific agenda for APAC, recognising its importance in our global strategy.

    Learning from Industry Leaders: We see valuable learning opportunities from experts in both the media and tech industries, many of whom are present in this room. Collaborating and gaining insights from industry leaders will be instrumental in our growth strategy.

    Expanding to New Territories: With a strong foundation in place, we intend to carefully select new markets, such as Indonesia, Vietnam, Korea, and the Philippines, where we can introduce the magic of the Snapchat community and grow our presence.

     

  • Prime Video: A Unified APAC Strategy or Bespoke Country Approaches to Win?

    Prime Video: A Unified APAC Strategy or Bespoke Country Approaches to Win?

    Mumbai: APOS, the defining voice and global platform for the Asia Pacific media and telecoms industry, took place from 26-28 September 2023, at the Ayana Estate in Bali, Indonesia.

    Created & curated by Media Partners Asia, APOS is the ultimate destination for deals, partnerships and thought leadership with a focus on content, connectivity and commerce sectors.

    APOS was established in 2010 and is attended by global, local, and regional industry leaders.

    The speakers of the panel discussion on ‘Prime Video: A Unified APAC Strategy or Bespoke Country Approaches to Win?’ were Prime Video VP Asia Pacific Gaurav Gandhi, Prime Video director Southeast Asia David Simonsen, and Prime Video head of originals – India and SEA Aparna Purohit.

    On your long-term strategy and on applying insights from your successful ventures in India

    Aparna: I’m thrilled about my expanded role overseeing Originals in Southeast Asia. First, looking back at the past seven and a half years in India, where we pioneered premium cinematic content. It was a journey of breaking new ground and convincing filmmakers to join us in creating something unprecedented. We learned and grew together, and our shows like “Inside Edge” became cultural phenomena, demonstrating our long-term vision and creative commitment. We invested time and creativity without hesitation and championed gender balance both on and off-screen. Our India team continues to excel.

    Now, in Southeast Asia, I see endless possibilities. Meeting creators there highlighted the universal power of storytelling, transcending language and culture. Our strategy is to craft authentic, locally rooted stories that resonate with each unique audience. We’ll build upon the strong foundation laid by our exceptional teams on the ground. It’s an exciting journey, tailoring content to our customers’ preferences and connecting through the art of storytelling.

    On some successes, challenges, and your broader ambitions

    David: In our first year, we’ve seen significant success in building a strong team in Singapore. We’ve made excellent hires, fostering diversity and expertise within our team. Our regional infrastructure, active for the past six months, has further bolstered our capabilities to reach millions of customers across the region. We’ve been strategizing for customer engagement and acquisition.

    On the flip side, we’ve encountered challenges related to product and consumption events. However, we’ve stayed committed to our plans and adapted as needed. The introduction of three new modes in Q2 this year has had a substantial impact on our business, positioning us favorably.

    We view this year as foundational, having established valuable relationships in the market and forged new partnerships in programming and production. Looking ahead, we’re excited about the opportunities the next few years hold.

    On approaching significant markets like Indonesia, Philippines, and Thailand, especially considering Thailand doesn’t have a standalone service yet

    David: Certainly, Prime is a significant aspect of our business, and we’re diving into it in greater depth in our priority markets. Quality and customer experience are paramount, and this remains consistent across our various offerings. Rather than viewing it as a barrier, we see it as an opportunity to cultivate and expand a brand-new subscription service in markets where we haven’t made our mark yet.

    On your strategies driving scale in both past and present market landscapes and lessons from these experiences that can be applied to markets like Thailand and the Philippines

    Gaurav: Amazon’s approach always centers on understanding customers’ needs and creating value. We start by identifying white spaces in each market, seeking ways to win local customers across key segments. In Japan, our success lies in being the go-to destination for local content, including films and unscripted formats. We’ve also excelled in sports, particularly baseball and boxing. Our channels business thrives, forming a robust entertainment ecosystem for a vast customer base.

    When we began, we were clear about not limiting ourselves to a single language but scaling across languages simultaneously. We focused on two key dimensions: original content and a personalized user experience. These differentiators have been instrumental in our success. We’ve also looked at the business-to-customer category, addressing the overwhelming amount of content and the need for a better user experience.

    Another key aspect is our commitment to breaking barriers and creating categories where opportunities exist.

    Our collaboration with T-Mobile in India is a prime example of expanding beyond language silos, and it has been remarkably successful, showcasing the potential for creators and offering a richer experience for customers. These strategies are part of our ongoing efforts to innovate and cater to diverse customer preferences.

    On navigating different scenarios, you’ve competed with Netflix in Japan to build the category. India appears to be developing a global category, while Netflix dominates in Southeast Asia.

    Gaurav: We’re certainly excited about being a beloved content service for our customers, offering a diverse range of programming pillars. We program our content while also partnering with others.

    Our service encompasses a wide variety of content, including movies, shows, and sports, catering to diverse emotional experiences. Collaboration with our partners is key to this approach. As we venture into Southeast Asian territories, some of which are in the early stages of development, we aim to play a significant role in shaping the creative economy. We envision not only contributing to the existing category but also expanding it through our offerings.

    On mentioning Prime Video as a one-stop entertainment destination and elaborating on how this strategy will unfold in APAC, especially considering the significance of live sports and the convergence of live sports, channels, and television in this region and  it enhancing the overall user experience

    Gaurav: We’re actively involved in live sports in various parts of the world, with a stronger presence in Japan, where we’ve had success in baseball and boxing. We’re exploring channel content as well, and it’s an exciting part of our offerings.

    In terms of sports programming, we evaluate it on an event-by-event basis to provide our customers with a compelling experience. Additionally, sports plays a crucial role in our channels offering, complementing the digital wallet approach.

    We’ve seen strong demand for video-on-demand sports content, especially in India. Our strategy varies by country, taking into account the market’s maturity. In India, we’ve adopted a curated strategy with a focus on live sports events and a vast catalog of recent movies. The response has been highly positive, with deep engagement and customer satisfaction.

    We collaborate with global and local partners, creating a comprehensive spectrum of offerings. We’re open to discussing partnerships with anyone interested in expanding their reach, whether they are global or local partners.

    On your strategy for engaging with pay TV operators and telcos in the region and are there any early successes or partnerships you’d like to highlight

    David: Overall, we’re diligently working on each chapter, ensuring our retail funnel remains in top shape. We’re actively pursuing partnerships with a clear goal in mind: engaging and retaining customers through these collaborations. Expanding our reach is of paramount importance to us, providing customers with various gateways to access and enjoy the Prime service.

    In addition, we have dedicated teams managing relationships with our partners across the board. We prioritize the onboarding process, striving to get customers onto the service swiftly and efficiently. Our focus is on building relationships where Prime Video complements the broader B2B ecosystem. You can expect to hear more from us on this front as we continue to make progress, even though we may have been relatively quiet in this space in the past.

    On envisioning potential opportunities in Indonesia and expanding this model across the region and globally and are there specific areas you believe require further attention and development

    Aparna: We’ve witnessed how some of our international shows gain popularity and travel across Europe and beyond. India shows have seen up to 20 per cent of their viewership come from outside their home country. The diverse linguistic palette is striking, with viewers comfortably consuming content in more than three or four languages. I firmly believe that the next wave of global content innovation will emerge from this region.

  • India’s OTT video market to reach $3 bn in 2022; estimated to double by 2027: Report

    India’s OTT video market to reach $3 bn in 2022; estimated to double by 2027: Report

    Mumbai: India’s OTT video market will reach total revenues of $3 billion in 2022 and is expected to more than double to $7 billion by 2027, according to Media Partners Asia (MPA).

    In the recent analysis, MPA looks at the online video and broadband distribution trends in the Asia Pacific (APAC) market.

    The online video market in APAC is expected to grow 16 per cent year-on-year to reach $49.2 billion by the end of 2022. MPA forecasts that the industry will continue to grow by 8 per cent YoY to reach $72.7 billion by 2027.

    Subscription video-on-demand (SVOD) is expected to contribute 50 per cent to overall revenues, followed by user-generated-content (UGC) advertising video-on-demand (AVOD) platforms which will contribute 37 per cent and premium AVOD that will contribute the remaining 13 per cent.

    “APAC’s largest markets including India, Indonesia, Japan, Korea and Thailand will be increasingly important to global platforms,” observed MPA executive director Vivek Couto. “Each of these markets require local content and distribution strategies with long-term investment.”

    The APAC region remains the largest contributor to global online video customers and its users are emerging as a significant contributor to revenue growth. In its recent quarterly results, streaming giant Netflix reported a loss in subscribers in every market (United States-Canada, Europe Middle East and Africa, Latin America) except APAC where it reported paid net additions of one million.

    Also Read: Netflix to launch cheaper ad-supported plan for early 2023

    Indian Scenario

    As per the analysis, India’s OTT video market is in the second phase of its growth as competitive intensity is set to grow between global giants and newly capitalised local players. Telco reach remains critical in the market along with AOVD business models and low-average revenue per user (ARPU), high volume SVOD services.

    In terms of SVOD business, Netflix, Disney and Amazon lead, with the three players having 56 per cent aggregate of the APAC market excluding China in 2022. Netflix will have 33 per cent share followed by Amazon Prime Video at 12 per cent and Disney+ including Disney+ Hotstar at 11 per cent.

    Netflix’ s share of online video subscription revenues has declined from 35 per cent in 2021 while Disney+ and Disney+ Hotstar services are building scale, local content investment and monetisation in markets such as Australia, India, Indonesia and Thailand while also expanding in high ARPU, strong local markets such as Japan. A third of Disney+ revenues come from India, however, where it has recently lost digital rights to the highly successful Indian Premier League (IPL) cricket franchise to Viacom18.

    Prime Video leads the Japan SVOD category while also growing rapidly in India and is now set to expand in key Southeast Asia markets in the fourth quarter 2022.

    In India, new local players with deep pockets are gearing up to grab market share, led by a newly recapitalized Viacom18, backed by strategics Reliance, Bodhi Tree and Paramount while domestic incumbents Zee and Sony are merging to create a strong TV/online video business.

    Going forward, Viacom18’s new streaming platform, leveraging IPL cricket and local entertainment, will emerge as an important player in the AVOD space in particular, grabbing material share over time as it leverages massive reach via Jio mobile and connected TV.

    Ad-supported SVOD models will launch across Asia Pacific in 2023-24, led by Netflix and Disney+.

    Broadband distribution landscape

    The total addressable market (TAM) for high-speed broadband continues to expand rapidly in Asia Pacific with greater 4G, 5G and fiber-enabled connectivity.

    Excluding China, the combined 4G and 5G users will reach 78 per cent of the population across APAC in 2022 while fiber-driven fixed broadband penetration will reach 31 per cent.

    Teclos, connected TV (CTV) operators and pay TV operators remain important aggregators of SVOD, freemium and AVOD services, contributing between 20 to 80 per cent to OTT video platform reach, depending on the market.

    The rising CTV penetration and big screen consumption of online video content is helping fuel advertising growth across YouTube and premium SVOD platforms, led by broadcast video-on-demand (BVOD) players in particular, while also bolstering demand and monetisation at SVOD platforms.

    “Investors are increasingly focused on enhanced scale, improved monetization and real profitability across global, local and regional online video platforms. In this context, the role of Asia Pacific continues to have a critical role in the future of the global online video industry,” said Couto.

  • Sports media rights investments in India to grow by 10.1% over 2021-26: MPA report

    Sports media rights investments in India to grow by 10.1% over 2021-26: MPA report

    Mumbai: Sports media rights investments in India will grow at 10.1 per cent CAGR (compound annual growth rate) over 2021-26, bolstered by demand for cricket properties, led by the Indian Premier League (IPL), according to a report by Media Partners Asia (MPA) released on Friday.

    The report, which tracks the growth of sports rights and TV and online video sports revenues and subscribers across 14 markets in Asia Pacific (APAC), found that the market for sports rights and sports media revenues across APAC have recovered in 2021 after the damaging impact of the Covid-19 pandemic in 2020 and is expected to grow at a sustainable rate over 2021-2026.

    Overview

    As per MPA, sports rights for APAC contracted by $1.2 billion in 2020 while sports media revenues fell by ~$0.9 billion in the same year. The rights values crashed in China in 2020 while revenue contraction was marked in Australia and Japan. The year 2021 saw significant recovery in rights values and revenue, which MPA expects will continue in 2022, ensuring that rights values return to pre-pandemic levels, surpassing the absolute value of rights registered in 2018.

    Sports media revenues

    Asia Pacific sports revenues in TV and online video will grow at a combined six per cent CAGR between 2021 to 2026. Sports revenues will grow from $6.7 billion in 2021 to $8.9 billion by 2026.

    Sports media revenues contracted by 15 per cent i.e., $0.9 billion in 2020, during the pandemic, and recovered by more than 30 per cent in 2021. They are projected to grow by 11 per cent in 2022.

    In 2021, sports media revenue growth was especially significant in Australia, China, India, Japan, Korea and Southeast Asia, led by Indonesia and Thailand.

    Australia, China, India and Japan will contribute more than 82 per cent to sports media revenues in 2022 that will increase to 83 per cent by 2026, stated the report.

    The contribution of online video in overall sports media revenues will increase from 28 per cent in 2021 to 33 per cent in 2022 further growing to 42 per cent by 2026. The major market drivers of sports media revenues via online video are Australia and New Zealand, China, India, Indonesia, Singapore and Taiwan.

    TV will remain critical in India, Japan, Korea and Malaysia but its overall share of APAC sports revenues will fall from 72 per cent in 2021 to 58 per cent in 2026.

    Sports rights

    By 2022, sports rights across APAC markets will grow by 5.6 per cent to reach $6.5 billion. It will further grow at a CAGR of four per cent to reach $7.4 billion by 2026.

    Australia, China, India and Japan dominate when it comes to sports rights investment with 77 per cent share of total sports investments in 2022 that will grow to 79 per cent share of investments by 2026.

    Football leads the sports rights market in APAC with the Premier League topping the list of individual properties. Rights for the 2022-2025 Premier League have fallen by ~25 per cent to $1.4 billion because of substantial deterioration of the sports media rights in China. Excluding China, Premier League rights values for APAC grew by 10 per cent to $1.2 billion driven by healthy increases in Australia and New Zealand, Indonesia, Japan, Korea and Thailand.

    The main driver for recovery in sports media revenues and sports rights across APAC will be consumer and advertiser demand for live sports across integrated streaming entertainment and sports platforms along with TV networks in key geographies, stated the report.

    “Sports remains vital in Asia Pacific as a tactical weapon to build brand and market share and in certain instances, pricing power,” said MPA executive director Vivek Couto. “However premium tier-1 rights generally remain loss leaders or break even bets, especially in the case of marquee football and cricket properties. TV platforms remain important for the value of sports rights and monetisation but the growth of online video as well as tighter consumer and advertising wallets have squeezed growth in key Asia Pacific markets with many players impacted by cord cutting as customers continue to churn to: (1) Integrated entertainment and sports streaming platforms; (2) Pure play sports streaming platforms; and (3) Piracy. TV reach and revenues will however grow at a robust rate in large scale markets such as India, which emerged as the second-largest TV sports market through the pandemic, after Japan.”

    Adding further, he said, “Meanwhile, the rapid growth of online video distribution has boosted sports rights and revenues through SVOD and ‘freemium’ windows, especially in markets such as Australia, India, Indonesia and Korea. The economics of pure play sports streaming remains challenging; integrated entertainment and sports platforms remain on a stronger path while TV and streaming bundles will continue to play an important part in unlocking the value of sports.”

  • Indian content producers see uptick in revenues from online video platforms

    Indian content producers see uptick in revenues from online video platforms

    Mumbai: The production of local originals in India is heating up and giving a boost to the creative economy. Online video platforms are expected to invest heavily into local original content to ensure robust paid subscriber growth.

    “The market for digital content has definitely increased,” said Fremantle India managing director Aradhana Bhola. Fremantle India is known for its unscripted TV reality series like “India Idol” and “India’s Got Talent.”

    Fremantle is a global production and distribution company based in the UK that has created hit reality series “Too Hot To Handle” on Netflix and “Hear Me. Love Me.” featuring actor Shilpa Shetty on Prime Video. The Indian arm of the production company has collaborated with YouTube India for two YouTube originals “Hello 2021” followed by “You V YouTube” hosted by actor and cricket presenter Gaurav Kapur.

    “We don’t have a formal partnership in terms of some kind of output deal, however, we are working a lot with them (YouTube),” said Bhola.

    According to Media Partners Asia, investment in online video content reached $1 billion in 2021. Furthermore, the investments in local content increased from 29 per cent in 2020 to 37 per cent in 2021. Licensed/acquired content accounts for 63 per cent share of investments in online video content.

    OTT platform Lionsgate Play, the streaming arm of Lionsgate Entertainment is also launching its first Indian original “Hiccups and Hookups” starring Lara Dutta and Prateik Babbar. Prime Video is releasing the third season of its hit series “Inside Edge.” Disney+ Hotstar is releasing its family drama “Dil Bekaraar.” Netflix is releasing its comedy “Decoupled” that stars R Madhavan and Surveen Chawla. The space for local originals is heating up.

    There is a strong correlation between OTT players who are willing to invest in premium content to service uptake and audience stickiness, according to a study by Boston Consulting Group (BCG). “In the last two-three years, the Indian OTT industry has come of age. The subscription OTT industry is growing at a much faster pace compared to the rest of the industry. This indicates a maturing of the consumer who is now willing to pay for specific content,” said BCG senior partner and managing director Kanchan Samtani.

    Media Partners Asia vice president and head of India Mihir Shah estimates that if OTT players continue to invest in local content at this rate the subscription video on-demand adoption will grow by four times and reach 224 million subscribers and $ 2.1 billion in revenues by 2026.

    The leading OTT players in terms of subscriber share in the SVOD market are Disney+ Hostar (50 per cent), Prime Video (19 per cent) and Netflix (5 per cent). Revenue share of SVOD subscriptions is at 25 per cent for Disney+ Hotstar, 22 per cent for Prime Video, and 29 per cent for Netflix.

  • Star India consolidated its market share post-lockdown: Kevin Vaz

    Star India consolidated its market share post-lockdown: Kevin Vaz

    Mumbai: In the 18 months post-lockdown, Star TV network has emerged as the top broadcaster with over 30 per cent network share and strong growth across network channels, said Star and Disney India president and head – network entertainment channels Kevin Vaz.

    In the Hindi segment – Star Plus and Star Utsav are leaders, and Star Plus has grown to a seven year high, said Vaz while addressing the APOS India summit that began virtually on Tuesday. 

    While there have been tectonic shifts in the regional markets, Vaz said Star Pravah initially ranked third among the top channels reached the top position, and Star Vijay, which was Star India’s first regional channel competing in one of the toughest markets, became number one in primetime. Markets where Star TV had a stronghold – Malayalam (Asianet) and Telugu (Star Maa) have only grown further.

    In conversation with Media Partners Asia co-founder and senior partner Vivek Couto, he also spoke about the recovery of TV advertising business, the future of regional TV, investments in content on TV, resurgence of free-to-air (FTA) and future of mass TV.

    “There are several positive macroeconomic factors that are indicating that the economy is bouncing back,” noted Vaz, adding that the IMF has predicted 10 per cent growth in the coming year. “IIP Index reported 11.9 per cent growth in August. GST collections are up by 17 per cent compared to 2019. The last three months have seen GST collections crossing Rs one crore every month. The successful vaccination drive where 1.2 billion Indians have received at least one shot has led to a positive future outlook.”

    In terms of depth of advertisers, Vaz observed that the set of advertisers has shifted in the past five years. For instance, five years ago 92 per cent of advertising for the Indian Premier League (IPL) came from categories such as beverages, telecom, handsets and consumer durables. However, now the new age companies such as e-commerce, fintech, gaming and edtech are changing the paradigm.

    “These companies have grown their contribution from eight per cent to 40 per cent with the remaining 60 per cent constituted by traditional advertisers. Five years back there were 35 unicorns in the country. This year there are 72 unicorns which are expected to grow to 100 unicorns in the year ahead. These companies have a lot of funds, they want to grow their customer base and advertising on TV is their first point of call,” said Vaz.

    Discussing the situation during the lockdown, Vaz said TV broadcasters were caught in a dichotomy as advertisers were pulling back yet with the consumer sitting at home, this was the best chance to create strong partnerships and serve them really good content. “We decided to double down on investments and keep investing in brands keeping the consumer at the focus. We also changed the programming schedule. For example, Star Pravah increased its original programming from two hours to five hours and regional channels such as Star Vijay and Star Maa started serving 45-55 hours of original content every week. The result we see today is that every channel is a leader,” he added.

    TV has a lot of scope to grow in the country, noted Vaz. There are 300-325 million households out of which TV reaches 210 million. The rural markets added 20 million homes in the last five years, he said. Every week 750 million viewers tune in to watch TV and consume one trillion minutes of content, indicating that TV is the preferred entertainment medium. Vaz said that TV viewers in regional markets consume four hours of TV every day which is 25 per cent higher than the national average. So, growth in HSM markets will come by getting them to stick to TV for a longer period of time.

    In terms of content investments, Vaz said that Disney and Star India’s strategy is agnostic to screens. He remarked, “We continue to invest more on TV by launching new channels, opening in new markets. In each market, we intend to have one entertainment, one movie and one music channel to serve wholesome viewing to the consumer.”

    He also talked about how the production values on TV have also been scaled up with the launch of big historical dramas and mythological shows. Apart from regular fiction shows, he said finite shows where production values are higher will also be part of TV offering.   

    Speaking about the resurgence of FTA channels, Vaz said, “We are committed to serving every consumer segment. The FTA market is an incremental opportunity. There are 40 million FTA households. The awareness of pay channels is not high in these markets. Most consumers will begin their TV journey with an FTA channel. The monetisation opportunity is to upsell them. It is important to target this audience as their consumption is disproportionate in the rural markets.”

  • “Sports to be a key focus area,” says Punit Goenka as talks move ahead on Zeel-Sony merger

    “Sports to be a key focus area,” says Punit Goenka as talks move ahead on Zeel-Sony merger

    Mumbai: Sports will be a key focus area for the Zeel-Sony merged entity, said Zee Entertainment Enterprises Ltd (Zeel) MD and CEO Punit Goenka, as the two media companies move forward in building one of the largest entertainment networks in the country. The mega merger announced in September is currently underway.

    “Certainly the merged entity will focus on sports. Zee on a standalone basis will not. We have just finished our non-compete with Sony on the sports side. While we will reconsider sports on a standalone basis, right now, my focus is to look at it from a joint consolidated basis with Sony,” said Goenka, elaborating on the merger. “A lot has changed since we exited the sports business and we sold it to Sony right. So, it is coming full circle. The opportunity is great because the digital landscape has opened up a new opportunity for monetisation which did not exist five years ago. The sector itself will see a lot more happening going forward.”

    The Zeel MD said the TV broadcasting industry has witnessed intense competition since Zee’s inception three decades ago and any consolidation will benefit the overall M&E industry. However, he highlighted that the decision on any kind of bidding will be taken by the board of the new merged company.

    Goenka was addressing the Apos India summit organised by Media Partners Asia, which began virtually on Tuesday. In a conversation with Media Partners Asia executive partner and co-founder Vivek Couto, Goenka also spoke about the role of technology in content creation, broadcasting and streaming, the scope of SVOD business and strategy for TV in a new regulatory environment.

    The Zeel MD said the vision is to create a media powerhouse, but reiterated that the content company thus formed, will remain ‘Indian’ and the focus will be on Indian content, language and culture. Speaking about the synergies with Sony, he said, “The reason I chose Sony is because the two businesses are complementary with minimal overlap. Across linear and digital platforms and genres, we will encompass an entertainment suite that the whole family can watch.”

    According to Goenka, Zeel’s strategy of being SVOD-first will give it the leverage to fight going forward. Even though India has more advertising video on demand users there are 45-50 million paid subscribers that will grow to 200 million in the coming years, he said. The company’s streaming platform Zee5 has also recently announced a content slate of 17-18 originals in H2 2021.

    “The audience watching content on streaming platforms in India are clearly a mobile-first audience looking at the sheer numbers from mobile platforms,” he said. “These audiences are spending 148 minutes watching on SVOD platforms whereas on AVOD it is less than 30 minutes on average.”

    He added, “Before the pandemic people didn’t think 40-50 million people would pay for content but that is the case today. They are not paying a great deal but they are paying. The Zee DNA is to nurture the best minds in the creative ecosystem, be language first, build national scale and we will replicate that on the digital platform,” he said.

    On entering new language markets like Odisha, Bhojpuri and Punjab with their TV channels, Goenka said, “Nobody thought these markets were relevant. We thought even though it is not a big market we can build it into one.”

    Goenka said that data will have a critical role in creation of content in the future. “We have upgraded a technology and innovation centre in Bengaluru which will transform the company’s content offering. At Zee, we are embracing technology. We are a bit late compared to global players but will catch up quickly,” he added.

  • Netflix’s India ambitions surpass Rs 3000 crore investment

    Netflix’s India ambitions surpass Rs 3000 crore investment

    Mumbai: Global streaming platform Netflix will pump more money into producing content in India, said chief executive officer Reed Hastings. The key executive of the streaming giant was speaking to Business Today’s global business editor Udayan Mukherjee in an interview.

    The company has already pumped in Rs 3,000 crore in the past two years to develop original programming, particularly focused on local content, and more investments are in the offing. “India as a market is witnessing explosive growth in video content viewership over the past couple of years – partially propelled by people having to stay home because of the Covid-19 pandemic,” Hastings said.

    The competition in India’s OTT arena is heating up with HBO Max service expected to hit the subcontinent early next year. Hastings sees the competition differently, saying that services such as YouTube and TikTok are the platform’s biggest competitors. But instead of focusing on the competition, he chooses to focus on the next big show that everyone could be talking about.

    “Netflix has emerged as one of the prime contenders for the consumer’s wallet. Over the past five years, the brand has established instant recall in the minds of the Indian consumer,” he said. “What’s great about the Indian market is that Hotstar started so early and pioneered streaming in India. It has really increased the market size, and then Reliance Jio transformed it with regard to access and cost, democratised it. So, they created the base for the market which is today one of our top global priorities.”

    According to a report by Media Partners Asia, the Indian OTT industry is expected to spend $ one billion on content out of which 45 per cent will be local and original content. Reports estimate that the OTT platform has more than five million Indian subscribers. 

    Hastings admitted that Netflix’s journey in India has been harder than was initially anticipated, but he revealed the company’s determination to overcome those challenges through its continued commitment to the Indian market and simply by investing more. He also highlighted that Netflix, which has strong premium imagery in the consumer’s mind, is also focused on providing greater affordability to Indian subscribers.

    The interview will be aired on 17 September at 10:30 p.m on Business Today Show with Udayan Mukherjee.