EY - Future of Indian television: key trends

Future of Indian television: key trends

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Indian television industry is undergoing a seismic shift. With the accelerating pace of technological change, innovation is key to success.

Strategy and monetization

Front office

Middle office

Back office

  • Customer experience management
  • Customer and channel segmentation
  • Digital IP: products and services
  • Pricing and bundling
  • Sales, service and marketing transformation
  • Social media strategy
  • Technology enablement: lead to service, web, contact centers, customer resource management (CRM)
  • Support operations optimization: Marketing, sales, service
  • Enterprise cost reduction
  • Operating model and governance
  • Content monetization
  • Digital/media asset management
  • Technology enablement: non-core IT, next-gen sales, operations and engineering
  • Supply chain and distribution
  • Finance transformation
  • Enterprise resource planning (ERP)
  • Shared services optimization
  • Intellectual property management: rights, royalties, participations
  • IT Services Management: disaster recovery, business continuity, digital content security, cloud

Business intelligence and advanced analytics

Organizational design, change management and governance

Technology selection and program management

Privacy, security and risk management

Our latest study unearths the ten emerging trends impacting the future of television in India.

1. Unbundling of content driving new revenue models

With the advent of good-quality broadband and increasing per-capita income, TV content will get unbundled. There will be a shift from channel loyalty and TV loyalty to program loyalty and device disloyalty.

  • Implications:
    • Need for sachet pricing models - Pricing by episode, series, day, etc will be required
    • Loss of traditional subscription revenues
    • Possible threat that high individual pricing could be hampered by piracy

2. Technology-enabled omniplatform consumption

Consumption will spread across multiple locations with the aid of enhanced technology like wifi. Content consumption would be across various formats and devices.

  • Implications:
    • Seamless content delivery would be essential across devices and locales; evolution of modes of storytelling necessary
    • Measurement of viewership will be individualized, based on large volumes of actual data
    • Increased adoption of digital supply chain to reduce cost and time

3. “On-tap” content leading to time-shifted bingeing

With no immediacy of viewing (except in sports and breaking news), viewers will access most content at their ease, and indulge in bingeing (consuming many episodes at once).

  • Implications:
    • Strengthened digital asset management to enable subscription revenues
    • Emergence of new pricing and packaging models
    • Growth of Multi Channel Networks

4. Increased materialism

Increased materialism and lower TV, broadband and PC costs will enable families to split their viewing patterns from the “common” or living room, to the “individual” or bedroom.

  • Implications:
    • Lower share for GECs and increased importance of niche channels
    • Ability for advertisers to target audiences one-on-one

5. Increase in piracy

Broadband growth = Piracy growth. This holds true especially when broadband rates reduce and come on par with cable rates.

  • Implications:
    • Need for industry-level initiatives to curb piracy
    • Flexible & fair content pricing models

6. More power to the content producer

IP will begin to be co-owned by production houses, and not just broadcasters, as increasing content costs will result in increased risk sharing.

  • Implications:
    • New content licensing models
    • Need for robust content use monitoring systems
    • Premium artists start to share the risk

7. Emergence of niche channels

India will digitize its distribution across Phases I to III. Increased collections from subscribers will trickle to broadcasters. Phase IV will remain a fragmented or HITS play, with LCOs retaining their last-mile relationships.

  • Implications:
    • Increased revenues for niche channels
    • Fragmentation of the “GEC” into “sub-GECs” with focused target audiences
    • Possibility of massive viewership measurement at the household level
    • Need for marketing to support Phase III viewership

8. Per-viewer carriage models

Carriage is a distribution cost and will be recognized as such, till such time as MSOs begin to collect a larger share of subscription revenues.

  • Implications:
    • Per-viewer carriage models will come into being; split across 50 large and medium distributors

9. Unicasting leading to result-based ad models

Ad service will change to unicast models, targeting individual viewers, like the internet.

  • Implications:
    • Advertisers will begin to pay per ad served and viewed, and increased measurement will be the norm
    • Value of a served customer vs. a mass customer will be determined
    • Use of return path (where possible) to drive interactivity

10. Real-time feedback

Apart from viewership measurement, trends from social media like Facebook, Twitter, etc. will provide inputs to marketing, pricing and story-telling.

  • Implications:
    • Need to implement social media crawlers and big data analytics
    • Content supply chain needs to be flexible