digital transformation of entertainment
DESCRIPTION
How Music and Video home entertainment industries are transforming with times, with special focus on India.TRANSCRIPT
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Entertainment, Transformed.Presented by Group 5
Rishi Jain Mohit Patil Venkat Pogaru Priyesh Saurabh Chirag Shah Arjun Padmanabhan
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Digital Video -A growing phenomenonFactors for growth
Demand for flexibility in terms of timing, volume and place of content consumption
Younger audiences accustomed to time shifted and non-linear video
Declining prices of smartphones and tablets along with rise in large screen smartphones
Increasing broadband and 3G penetration and gradually increasing streaming speeds
Roadblocks
Access to high speed
internet
connections
Expensive data
charges
Comparison of video usage
Comparison of broadband speeds
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Digital Video An overview
YouTube rules the digital video
space in India
Largest share of online video
India expected to become second largest market in
2015
Rolled out a paid subscription service called
YouTube Music Key
I. Monthly subscription
at INR 9.99
II. Listen to music in
background on
mobile and desktop
III. Download videos
IV. Skip ads
Waiting in the wings Amazon plans to launch music, movie and video
streaming in 2015
Netflix to introduce
its subscription based
video streaming in
India
Ogle, s service for
English content, backed
by Pritish Nandy in beta
testing mode since Sep
2014
Ronnie Screwvala, former
CEO UTV Group and B
Saikumar, former Group CEO
Network 18, launched a
venture offering on demand
video, with investments of
INR1.5 billion
Content differentiation
Ease of content discovery
Tailoring content for customer
segments using analytics
Ease of payment
The way
forward
Reliance Jio to launch
an on-demand content
platform along with
its 4G launch
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Comparison between VoD in India and VoD abroad
In this respect global players are way ahead of local players Local players need to have strong strategy, heavy advertising and other PR skills to create
market presence
Experience
VOD requires high end technology and network Needs to be delivered without too much buffering and pixilation High speed internet or broadband connection or Wi-Fi which is still evolving in India as
compared to US or Europe
Technology
Consumer awareness about new products, services and brands is growing in India, but at a much slower rate as compared to the market aboard
Video on Demand is fragmented in India VoD in India is targeted more toward middle class and upper-middle class consumers, which
is not the case in other countries
Market
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Subscription models offered
Subscription Video on Demand (SVOD)
Viewers or consumers are charged a monthly fee that allows them to have access to the digital content of their choice. In India, we only have SVOD services offered by players like Airtel, Tata Sky, Qwik
Entertainment etc. Global players include Netflix, Lovefilm
Transactional Video on Demand (TVOD)
Viewers or Consumers pay for individual video on demand program. Its pay per view. This service is not yet offered by our local brands. Global brands include Voodoo, iTunes.
Advert-supported video on demand (AVOD)
Viewers are allowed to watch content for free; however they must watch advertisements at various points throughout the film. A portion of the ad revenue is then returned to the content provider. Global players
include YouTube, Hulu(US).
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Competitive Landscape for digital video in India
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Competitive Landscape for digital video in India
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Competitive Landscape for digital video in India
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Revenues from digital video is still very small but the industry is not discounting the future potential and is making investments
Social Media provides a multiplier effect for video ads since video ads if done right can go viral
A key risk is that customers are becoming accustomed to free content and changing the habits will be tricky
Sports can be a key driver for premium subscription. Starsports.comspaid streaming for ICC WC 2015 for Rs 120 had significant traction
Low credit card penetration, fear of using internet banking and lack of experience in using e-wallet is impending the growth of digital video
revenues
Monetization of Digital Video
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Indian video content providers has increased drastically in the past few years
Fictional and non- fictional content Prominent content providers
AIBTVFBeing IndianPretentious reviewsEast India Comedy
TVF has separated itself from the packTVFPlay.com startedActs as an online channelNew content as well as old content from TVFOld comedy shows and movies also availableTie up with Uber
Rising Indian Digital Content
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Key Figures
3m US customers per day
Operations in 24 other countries
5,000+Retail
Outlets
60,000+Employees
Peak value = $5bn
Expanding in UK,
Europe, Australia
Adopting & Driving Innovation
Retail Product Display Inventory Software Using Technology to Speed Transactions Store Opening Times 10am Midnight
Basically *everything* was new!
Key Success Factors
BLOCKBUSTER
Video on Demand
Cable TV
Low price Rentals
Satellite
Mail order Rental
Low price Retail sales
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AND THEN
Blockbuster filed for bankruptcy in 2010
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Key Features
Flat Fixed Monthly
Fee
Unlimited Rentals
No Return Due
Dates
No Late Fees
No Handling
Fees
Netflix did not invent a new technology - rather they
invented a new business model
NETFLIX
1998: Sales jumped from $1m to $5m
2002: $500m sales & 1m subscribers
2005: $1bn
2006: 5m subscribers
2010: 14m subscribers
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THE SUCCESS STORY
65 million members
50 countries100 million
hours per day
Original series, documentaries, feature films
Unlimited, Anytime,
anywhere
No Commercials
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THE COMPETITION
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TRANSFORMATION OF THE MUSIC INDUSTRY
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CURRENT SCENARIO
Caller Ring Back Tunes (CRBT)
Streaming/Subscription
Music Downloads
Major Digital Music Business Models
Share of Music Revenue based on sources of
distribution
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FUTURE CHALLENGES & PROSPECTS
Piracy and Licensing Bottlenecks
Labels like T-series, Rajashri, Aditya Music have eased up their licensing
policies.
Still struggling to chalk out a scalable model. Whereby users would find it
valuable to pay for listening to music
online.
Need to find a unique proposition