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Tag: Traditional TV

  • MPA Report: APAC video market to hit $165B by 2029; streaming set to dominate

    MPA Report: APAC video market to hit $165B by 2029; streaming set to dominate

    MUMBAI: To use a cricket analogy, television is going to go  even  more on the backfoot while online video shall come charging down the pitch to hit revenues out of the park. 

    That’s the latest prediction of Singapore-based  Media Partners’ Asia (MPA) in its  2025 report, outlining transformative trends in the Asia-Pacific (APAC) video and broadband industry.

    Among its key findings and predictions are:

    Industry growth & transition
    * Market Expansion: APAC video revenue is projected to grow by $16.2 billion, reaching over $165 billion by 2029 (CAGR: 2.2 per cent).
    * Online video explodes: Online video revenues projected to climb from $64 billion in 2024 to $89 billion by 2029, marking a 40 per cent increase. Gap with the US (at $140 billion in 2029) will have narrowed. 
    * Traditional TV contracts:  In contrast, traditional TV revenues are expected to shrink by $8 billion during the same period.
    * Streaming overtakes TV: Streaming revenues will surpass traditional TV by 2027, with their industry share rising from 44 per cent in 2024 to 54 per cent  by 2029, led by India and China.
    * Subscription video on demand (SVOD) services are expected to grow their share of the Asia-Pacific (APAC) video industry’s revenue from 44 per cent in 2024 to over 54 per cent by 2029.

    Revenue drivers & contributions
    * Key markets: India, China, and Japan will drive 64  per cent of the growth, with India alone accounting for 26 per cent.
    * Content growth: User-generated content (UGC) and social video platforms will lead, contributing $10.7 billion in new revenue. SVOD ($8.4 billion) and premium AVOD ($5.0 billion) follow closely.
    * Advertising leadership: Advertising will account for 65 per cent  of online video revenue growth, increasing its share of total video revenue from 52 per cent in 2024 to 54 per cent by 2029. Premium ad-supported video on  demand platforms driving growth.

    Shifting dynamics
    * SVOD boom: Subscriptions are set to rise from 644 million in 2024 to 870 million by 2029, driven by sports, Asian entertainment, and US content.
    * Connected TV surge: Penetration will exceed 85 per cent  in developed markets like Australia, Korea, and Japan by 2029, with notable growth in India, Indonesia, and Thailand.
    * Local players gaining ground: Global giants like YouTube, Netflix, and TikTok, which held 67 per cent market share in 2024, will see this decline to 62 per cent by 2029 as regional platforms strengthen.

    Vivek Couto, Executive Director at MPA, stated, “The APAC video market is undergoing rapid transformation, with streaming driving deeper engagement and improved monetisation. However, the decline of traditional TV and challenges in local streaming profitability are pushing the industry toward consolidation, particularly in markets like India, Japan, and Southeast Asia

  • New-gen kids prefer OTT platforms to kids’ TV channels

    New-gen kids prefer OTT platforms to kids’ TV channels

    KOLKATA: Back in the ’90s or early 2000s, kids had control over TV remotes during their vacation. Many kids would not have finished their meals without Mickey Mouse or Tom and Jerry on the screen which later became Pokemon and The Mask as well. With getting older, the names changed to Hannah Montana, That’s So Raven or High School Musical. Television occupied the childhood years of Gen Y and early Gen Z with some remembering their parents disconnecting cable just before board exams. The unfortunate Covid2019 pandemic has given an extended holiday to kids of today.   

    We all say major childhood habits grow into a lifelong trait. In that way, the future of linear television seems bleak as today’s kids are glued to video-on-demand services through smartphones, tablets and connected devices. Disney, the network which has amused several generations of kids has decided to shut three of its channels in the UK this fall. 

    Its new streaming service Disney+ will be home to content from Disney Channel, DisneyXD and Disney Junior from 1 October. Not only Europe, Disney Channel, Disney XD, Disney Junior, and Go Disney have been removed from Singapore’s Starhub and Singtel network. Although Disney+ is not available in Singapore yet, experts have speculated that it might soon enter the market.

    Why is Disney pulling off its kids’ channels from linear TV while its other channels still remain on? A network which has achieved over 50 million subscribers for its new streaming service in six months, is definitely looking at the long term game. A PWC data from 2019 showed that children between the ages of two and 11 watch 35 per cent fewer hours of live and time-shifted TV than they did in 2014; teenage viewing fell faster and was down almost 50 per cent over the same period. The statistics speak for Disney’s move to ditch traditional TV. It might be pulling off the oxygen supply via TV but it is injecting streaming in their blood.

    The change might be slower in India and as experts say linear TV and OTT will co-exist at least in the near future. If we look at BARC-Nielsen week 20 data, the kids genre has grown to nine per cent compared to pre-Covid2019 period. Compared to other genres, the growth is slower despite the surge in viewership in lockdown. Moreover, the growth is not even expected to translate into ad revenue. Hence, all the major networks in the country will try to monetise the same on their OTT platforms. 

    ZEE5 launched its kids’ section during the lockdown where all content from the network will be promoted. Viacom18 has already charted its future in Voot Select. SonyYAY has also been promoting its content on SonyLIV. Netflix revealed its ambitious plan for the segment earlier after churning out Mighty Little Bheem. Amazon Prime Video made its kids and family content free when lockdown started. Broadcasters are left with no option but to use digital platforms to get money out of a slowly dying genre on TV, even in India.

    Even during the countrywide shelter-at-home phase, co-viewing got a boost but for OTTs via connected devices or smart TVs. Kids are not only getting OTTs as their babysitters but also an activity to do with parents. As they grow, when they will look back at these days, a generation will remember Disney+, Netflix, Amazon as Gen Y did Cartoon Network, Nick and Disney Channel. 

    However, Indian kids are still enjoying traditional TV as BARC data shows that the kid's genre viewership has grown by 53 per in lockdown compared to the pre-Covid2019 period . 

  • Access, language variety, local partnerships to drive next billion subscribers

    Access, language variety, local partnerships to drive next billion subscribers

    MUMBAI: Despite the overwhelming growth of the OTT sector, players still need to pay more focus on issues such as content discovery, distribution, partnerships across verticals.

    The Future of Video India 2019 organised by Asia Video Industry Association (AVIA) hosted a session on “Capturing the next billion subscribers”. ZEE5 India CEO Tarun Katial, Amazon Prime Video India director and country general manager Gaurav Gandhi, Viacom18 Digital Ventures marketing and partnerships head Akash Banerji and Discovery digital business and partnerships director Issac M John participated in the panel moderated by TriLega partner Nikhil Narendran.

    Gandhi pointed out that screens and connectivity are the routes to the next billion users in the sector. According to him, the next important aspect is the hunger for content. Going against the common notion that Indian consumers are price conscious, he said that they are, in fact, value-conscious who will not mind paying for the right content at the appropriate price point.

    “Then there are questions of access and distribution. How easy is it to get these content or service by virtue of mobile phones, apps and then is the option of easy payment. Another important part is bringing the ecosystem together whether it’s cable companies or telcos trying to make sure they are able to offer customers the service,” he added.

    Discovery’s John spoke about the importance of content in regional languages as the next wave of consumers is coming from rural India. He also added that short-form content is going to drive content consumption citing the popularity of TikTok videos. According to John, offering unique content can create a clear demarcation of value.

    Banerji said that the next billion subscribers are not certainly going to come on the back of OTT videos only. It’s going to be multiple industries spanning retail, travel, etc. Banerji emphasised on the role of technology so the streaming services work seamlessly in tier II and III markets. He opined that ensuring the product works even in patchy network is a necessity, especially for someone who is possibly coming to the internet universe for the first time.

    Terming the present phase an exciting period, ZEE5 CEO Katial said everybody knows video, vernacular and voice search are going to change the game. He added that India will have an ad-supported model along with premium content behind a paywall but both will keep evolving.

    Gandhi pointed out content discovery, getting customers to see value in content and making them pay for it, and piracy as the hurdles to overcome. In addition to that, the media veteran spoke about the unsatiated demand for content which is a challenge for creators to fulfil in relevant languages. Katial agreed with Gandhi’s view giving an example of the demand for returning seasons of popular shows. In addition to that, he threw light on the need for personalisation and segmentation on the platforms with proper technology.

    While Banerji said that content is going to be a key differentiator for further growth, he cited the example of the FMCG industry for sales, distribution and brand building. For ensuring distribution in far-flung places, he thinks to work closely with local partners, local broadband players and local cable/DTH players is important. From the marketing aspect, he mentioned how FMCGs do micro marketing by working with local radio stations and print mediums. He even raised the question of attracting those not in the internet universe or older audiences.

    However, the experts reaffirmed the co-existence of linear TV and digital content at least for the next five to ten years. Demand for all types of content is increasing even as the TV becomes more accomodating to TV and non-TV content.

  • SVoD subscribers to touch 743 mn globally by 2023

    SVoD subscribers to touch 743 mn globally by 2023

    MUMBAI: Subscription based video on demand (SVoD) is rising persistently and will draw a level with broadcast TV globally by 2023 in terms of viewing hours per day. According to a report from Rethink TV research, SVoD will surpass traditional TV viewing soon after.

    The report forecasts SVoD usage in all the regions as well as highlights the differences between AVoD dominated Asian market and SVoD-crazy US and European market. The research sees 478 million SVoD subscribers today growing to 743 million by 2023.

    China will have the most SVoD subscribers by 2023 although North America will still drive the largest dollar volume. The report also forecasts the US market reaching 236.6 million subscriptions by the end of 2023, from a base today of some 146.5 million.

    “Europe and Asia will be neck and neck in SVoD revenues by 2023, but with far fewer subscribers in Europe, each paying significantly more than those in Asia, a region dominated by frighteningly large Advertising VoD streaming numbers,” it said.

    Outside China, Netflix will continue to lead in SVoD in subscribers numbers. The streaming giant will make up 194 million SVoD customers out of 743 million globally by 2023, some 26 per cent of overall global subscribers.

    The report has also predicted that WarnerMedia, under its new AT&T defined, freemium strategy will emerge as the new leader in the US Market. It is predicted to reach 29.6 million SVoD homes by 2023. Disney is also likely to have multiple SVoD service types, but may struggle outside the US.

    While the Asia Pacific market is highly skewed with China expected to gather 245 million SVoD subscribers, the average spend will be just $2 to $3 a month. Latin  American market will see competition among Netflix, America Movil’s Claro TV and Televisa’s Blim.

    “Europe will be a mishmash of different approaches with pure-play US operators like Netflix and Amazon now established, US studios beginning to stake a claim, and local broadcasters ganging up to challenge them. The region has its own pure play SVoD players also such as Maxdome, Sky, Zattoo, and Rakuten TV,” it stated.

  • Higher production values of OTT content won’t put pressure on TV biz: Punit Goenka

    Higher production values of OTT content won’t put pressure on TV biz: Punit Goenka

    MUMBAI:  With the growth of OTT market, all the big four broadcasters in India have ramped up their investment in digital ventures. To woo the online viewers, OTT platforms are producing high cost shows especially when it comes to originals. While there have been concerns that higher production values of OTT content might affect the content cost of TV business, Zee Entertainment MD and CEO Punit Goenka does not foresee such a scenario in his case.

    Starting from Amazon Prime’s Inside Edge to Netflix’s Sacred Games, ZEEL’s digital venture ZEE5’s Karenjit Kaur, the star cast, and content quality clearly indicates the high budget of the shows, though the exact numbers have never been revealed.

    Speaking in an earnings call, Punit Goenka said,“In terms of quality, I think it’s comparable to what television quality is because we use the same equipment. It will not put pressure on the television part because the sheer volume of television content that is being produced and the economies of scale that is being achieved there versus what we are producing for digital, the delta is far apart.” But he agreed that the content being made for digital platforms is of higher production value because of outdoor shoots and bigger stars.

    Zee crates 500 hours of original content every week for broadcast while that is a mere 800 hours for the whole year on digital. “There is no per hour concept there, it is all story and concept-based content cost,” he added.

    After creating a buzz in the Indian market thanks to its regional content, ZEE5 is expected to be launched globally soon. Commenting on that, Goenka said the global rollout will be completed in a phased manner. By the end of this fiscal year (FY 19), it will be available globally.

    Goenka is very hopeful of Zee5’s international success.”If ZEE5 does cannibalise our existing subscription revenue in international markets I will be very happy with that because that’s a direct ownership of the customer that the company gets rather having it through a distributor. So that’s a good problem if it happens that way and that is one of the parts of our strategy of going global with ZEE5,” he said.

    With the technological disruptors, the entertainment industry is always in a flux. 10 years ago, the entry of DTH players changed the industry. Then the increasing internet consumption with the entry of Jio bought another disruption. Now, as Jio with its FTHH connection eyes at  50 to 100 million households, there could be some structural changes especially affecting the broadcasters. However, that possibility does not concern Goenka.

    “My view has always been, even when DTH came 10-11 years ago, that all technologies will coexist in a country of our size. So, cable will also coexist, DTH will coexist and even ZEE5 will work. So, it’s all going to be different services at different price points. For a content company like us, it doesn’t really matter because at the end all three are pipes. So, as long as my content is relevant, I will still get my value from consumer payout,” he said confidently.

    However, with a realistic view, he expects ZEE5 to break even in next five years in stark contrast to several players who expect to break even within two-three years. According to him not only ZEE5 but the industry is still now in investment mode and there isn’t a chance to breakeven in the first three years.

    Almost every OTT player has already struck deals with telecom players, but ZEE5 has not yet signed any telecom deal in India or overseas. Till the time it isn’t getting the right value of its content, there won’t be any such negotiation.

  • Nielsen on changing landscape of global sports

    Nielsen on changing landscape of global sports

    MUMBAI: The global sports industry is undergoing more disruption than ever as a result of ongoing shifts in media consumption, the emergence of new technologies and a rapidly evolving sponsorship market.

    Nielsen Holding, a global measurement and data analytics company released a report on the top five global sports industry trends. It found that the big tectonic movements like the rise of digital media, esports and diversity are setting off many smaller ripples of activity such as the rise of short-form video, content-led esports sponsorship and new women’s sports formats.

    The top five trends noted by Nielsen are distribution disruption, esports evolution, content rules, sponsorship and partnership and sports in our changing society.

    In the distribution disruption, the single biggest question for the sports business today is whether media rights revenues will hold up as the traditional TV business is disrupted. Star India is a very good example for the disruption in traditional TV business. The broadcaster invested around Rs 22,000 crore in a span of eight months to acquire IPL, the biggest domestic cricketing league and the BCCI media rights.

    Other significant effects of disruption include consolidation among traditional media companies. Several large media companies are seeking greater scale in revenue, geographical and programming terms, partly in order to compete with the tech giants.

    Esports globally has grown suddenly in the past couple of years. The percentage of fans that started following esports in countries like Japan, France, the UK, Germany and the US are 39, 34, 34, 30 and 29 respectively within the last year.

    The combined e-sports and gaming market is estimated to be Rs 3900 crore with more than 2000 teams consistently participating in tournaments across India and abroad with over 50 crore players worldwide. U Sports, one of the newly formed sports business companies in India, launched U Cypher, the country’s first multi-platform, multi-game esport championship.

    E-sports has been announced as a medal event in the 2022 Asian games seeing its rapid growth. It is moving from being a hobby to an actual career option.

    ‘Content is king’ is the third trend in the list. Attention spans are shortening and competing for consumer attention is rising. This trend, perhaps reflects the ongoing rise of over-the-top (OTT) streaming solutions across a variety of private platforms, in particular social media, and media consumption trending towards mobile, bite-sized and on-demand content.

    The likes of Facebook and Amazon and the life-or-death value of live sports to pay-TV should maintain rights fee growth for premium properties.

    The rise of the smartphone, coupled with the expansion of high-speed internet connections in many countries, has seen consumption habits shift ‘inevitably and irreversibly’ away from linear programming and towards on-demand mobile content.

    Sponsorships are continuing to evolve into richer, two-way relationships. The market had already been trending in this direction, but today the most successful sponsorships truly are proper partnerships. In the new sponsorship paradigm, audience data, compelling content and connection to business objectives are the winning traits, according to the report.

    In India, ground advertising saw growth from Rs 6400 crore in 2016 to Rs 7300 crore in 2017.

    In last year’s trends, Nielsen reports said “Social responsibility is becoming more prevalent and impactful.” This year, the relationship between sport and society is changing faster than ever, and staying on top of that change has become even more important.

    Overall, 66 per cent of the consumers are willing to pay more for brands committed to positive social and environmental impact. If we bifurcate it age-wise then 72 per cent of consumers are below 20, 75 per cent are under 34 and 51 per cent are between 50-64.

    Women’s sports continues to grow in focus for rights holders, brands and media. The sector is booming as the growth opportunity represented by under-engaged females is recognised, as brands demand a focus on women’s sports and gender equality takes greater prominence.

    It isn’t just in developed markets that women’s sports is gaining traction. Last year saw the remarkable opening of sports stadia to women in Saudi Arabia, the inaugural CAF Women’s Football Symposium, and Harmanpreet Kaur becoming India’s first female cricketer to secure a bat sponsorship, among other milestones.

    The year also saw exciting launches of new women’s properties, such as the UK’s Tyrrells Premier 15s rugby union competition and Australia’s AFLW. And the 2018 Winter Olympics offered great opportunities for storytelling around female athletes. Stakeholders like the US broadcaster NBC obliged, putting the likes of Lindsey Vonn and Mikaela Shiffrin center stage in their promotional coverage.

    The next big thing can be that the tech giants will increasingly challenge traditional sports media and increased competition will force higher fees for some premium content.

    The esports market can possibly take a cue from traditional sports by adopting similar revenue-generating models and creative content will be key for successful esports sponsorships.

    The content rule for the right holders will play an important role in the future and they will explore ways of monetising the new types of content, through sponsorship and subscription products. As the quality, volume and variety of content increase, it will be harder and harder to cut through.

    Sponsorships will become more flexible and tailored, and will include more value-in-kind. Rights holders will invest more in digital content and activation capabilities, in order to engage fans, collect data and service sponsors.

    Women’s sports will continue to grow, but properties will have to work harder as the marketplace becomes more crowded. Spending will increase on sponsorship campaigns that exhibit brands’ credentials on diversity, sustainability and other social issues.

    Also Read :

    Sports sponsorship in 2017 up by 14%: SportzPower-GroupM report

    IPL 2018: Team sponsorship deals may see an uptick

     

  • TV relevant for streamers too finds survey

    TV relevant for streamers too finds survey

    MUMBAI: The growth of video streaming is beyond question as streaming devices are easier options for viewers to explore various chunks of content. However, streamers in various parts of US also have a bonding with traditional TV according to a report from Nielsen local watch report.

    93 per cent of streamers watched traditional TV on a typical day. The 7 per cent of the streaming viewer of the age group 25-54 streamed exclusively while 47 per cent of them watched only traditional TV on a typical day. Rest 46 per cent consumed a mix of traditional TV and streaming.

    In Detroit 53 per cent watch only traditional TV, while 39 per cent use a mix of both traditional TV and streaming devices. Eight per cent use only a streaming device in a typical day. The statistic varies in Portland where 41 per cent of streamers watch only traditional TV in an average day, with 12 per cent only using a streaming device to view content. 46 per cent use a combination of traditional TV and a streaming device in an average day.

    A huge number i.e., over 65 million US homes have an enabled device capable of streaming content to the TV as of last November. However, the OTT-savvy homes are more from urban areas. On the other hand, mid-size markets are showing more growth. Young affluent audience also has more inclination towards streaming devices. Homes, where the head of house is less than 35 years old, are 34 per cent more likely to have a streaming device than the average home. While this age group accounts for 20 per cent of streaming device owners, the age group of 25-54 comprise 44 per cent, and age group of 55+ make up 36 per cent.

    Like India, US viewers also have an affinity towards local media. 91 per cent of streaming device owners access local media on TV or online. 51 per cent access local news through app on mobile devices. 43 per cent have accessed local radio. 40 per cent completely or to some extent agreed to the importance of social media for keeping a track of local information.

    The survey reaffirms the importance of broadcast TV for even OTT viewers. Broadcast TV’s charm has not faded in this digital era also.

  • Thinkbox: Portable devices account for 1.5% of TV viewing

    Thinkbox: Portable devices account for 1.5% of TV viewing

    MUMBAI: New TV viewing figures from Thinkbox reveal that 98.5 per cent of television viewing is still done on the traditional TV set in the UK, while 1.5 per cent is on other screens such as tablets and mobile devices.

    The average daily TV viewing in the UK (during January to June 2013) was four hours, one minute a day per person. This was comprised of three hours, 58 minutes a day of linear TV on a TV set – this is three minutes a day less than the same period last year – and three minutes, 30 seconds a day via devices such as tablets, smartphones and laptops. The majority of this is on-demand viewing, with some live streams.

    Viewing on non-TV devices via established services such as ITV Player, Sky Go, 4OD and BBC iPlayer, as well as new services like Dave on-demand, accounted for 1.5 per cent of overall TV viewing in the country during the first half of 2013. This is a slight increase from the full-year figure for 2012, when it accounted for 1.2 per cent.

    According to Broadcasters’ Audience Research Board (BARB), it’s estimated that 58 per cent of households own digital TV recorders, and in these homes 83.8 per cent of linear TV was watched live during the period, down from the 84.4 per cent in the same period a year ago. Also, 81 per cent of all time shifted viewing is watched within two days of recording, while 47 per cent is seen within 24 hours of it being recorded. BARB’s figures suggest that the growth in the number of TVs that is recorded and played back is slowing down.