Digital TV to replace the traditional television and movie theatres
We expect the momentum in Digital to continue and project a growth rate of 25% in 2019. As the reach of Digital crosses 450 million and the smartphone Internet user-base crosses 300 million.
Digital TV is likely to hit the industry in a bigger way than it already has. FMCG, Telecom, BFSI and Real Estate will continue to be growth drivers for Digital. e-commerce will remain the backbone. This transformation in the economic fundamentals is bound to boost up, and at the same time, grow along with a steady revival in the rural economy and the ever-spreading middle class.
The Indian film industry is expected to cumulatively clock a revenue of Rs 19,200 crore by 2020 compared with Rs 22,400 crore for digital in the same time.
During the 1st Industrial Revolution, we not only created machines, we created machines capable of creating things. Printing presses, lathes, steam engines, powerful stuff. During the 2nd Industrial Revolution, we harnessed the electron to distribute power without having to use other machinery to move fuel around. During the 3rd Industrial Revolution, all of our information became portable, the way power did during the 2nd – with everything digitized, we no longer need to use, or transport, physical media to transport a “copy” of the information.
The current, or 4th Industrial Revolution,where the boundaries between the real world, the virtual world, and machinery, are breaking down. We can set up a virtual version of our manufacturing facility, swap out some key processes with new ideas, and run the virtual facility to see if profitability is increased. This obviously costs a great deal less than trying the same experiment in the real world, with real manufacturing facilities.
As we are moving towards the 5th industrial revolution rapid adoption and application of artificial intelligence algorithms-triggered by access to big data and better hardware capabilities-are processing capabilities-are changing the face of blue and white color jobs like, that is revolution in the social media and getting into more digital content and instant messages.
In future, we can only expect technology to become more superior and sophisticated in every sense: augmented reality, big data, virtual reality, artificial intelligence and the most disruptive one—cryptocurrency—are a few to name. Cryptocurrency is something so revolutionary that it is making news every day. Bitcoin’s price is touching the sky and investors of cryptocurrency believe that the prices are sure to touch the moon in coming years. With the number of people investing in cryptocurrency and people holding on to their alt-coins, one thing is sure: A fifth industrial revolution has “already” arrived.
The film and Television industry is disrupted by the arrival of YouTube, Netflix, and Amazon Prime, among others, boast of sizeable subscriber bases. Despite their substantial clout with end users, posing a credible challenge to Bollywood could yet be a pipe dream. Having said that, the amount of original content produced by these new players is much less than the hours of programming dished out by mainstream production houses, streaming services are reliant on licensing agreements to supplement their portfolio of syndicated content and original shows by offering users with multiple streaming subscriptions is low; attractive offers have also been effective in tempting potential customers into subscribing.
There is no deny in the fact that, technological disruption has altered consumption patterns, and an improvement in internet penetration has been at the vanguard of India’s digital revolution in entertainment. Indians are consuming more video content than ever before. However, the future of the entertainment sector continues to be clouded by uncertainty despite posting robust gains.
The number of active internet users has increased drastically over the last few years and with over a third of India’s 1.32 billion population already connected to the internet, the market for digital content represents a pool bigger than the population of the United States, highlighting the importance of India as a market for streaming services like Netflix.
The survey says, streaming ecosystem in the country might still be in a nascent state, but India has the second largest online video audience, more than Brazil and the United States. Ernst & Young estimates that India had 250 million video consumers in 2017, 190 million of those who were between the ages of 15 and 34. An increase in internet speed, fall in data tariffs and greater internet penetration could double the number of digital video consumers to 500 million by 2020, according the EY analysis.
The survey further says by 2021, online video advertising will grow at an average of 18% a year, twice as fast as other forms of internet display advertising and well ahead of any other channel and India remains one of the fastest growing economies, with strong GDP growth of over 7%, led by reforms in sectors such as retail, infrastructure, manufacturing and services. Digital will continue to accelerate both in reach and consumption. Television – linear and catch-up will be on an upward curve.
Secondly, by 2021, online video advertising will grow by US$20bn, while paid search will grow by US$22bn. Between them these two channels will account for 60% of the extra ad dollars added to the market over this time. Netflix and Amazon Prime market share gain at the cost of Indian platforms - Hotstar, VOOT, Jio Cinema
* Netflix inks pact with Hathway, to offer video streaming via set-top box. Netflix counts India as key market, plans bigger bets for more subscribers
* Hotstar raises Rs 5.16 billion to take on Amazon's Prime Video and Netflix
* India cheapest country to watch Amazon Prime Video: Some interesting facts
Just like the smartphone segment, the video streaming space (also known as OTT or over the top) in the country is witnessing a fierce fight between indigenous and global players with the latter gaining a stronger foothold in the domestic market.
As Indian users took to cheaper smartphones and faster and cheaper data, backed by a wave of internet proliferation of sorts triggered by Reliance Jio, the demand for video OTT platforms has also shot up. Local audience, like their counterparts in the developed markets, are also opening their purse strings for video subscription services. A telling statistics is that over two dozen OTT services have sprung up only in the last 18 months. This includes offerings from leading media houses like Balaji Telefilms (Alt Balaji), Viacom 18 (VOOT) and ZEE Media Corp (ZEE5).
Jio TV and Jio Cinema, the apps that come bundled with Jio mobile connection, have also seen their market share dwindle. Jio managed a 25 odd per cent market share for Jio Cinema, its main OTT offering, by shipping it pre-installed in its low-budget Jio Phones that was launched in July 2017.
Even as the overall base of users that consume on demand video streaming service is growing with more first-time users coming on the internet, Indian OTT platforms seem to be not able to maintain their market share.
Lastly, It is fact that technology disruption is a continuous process. Disruptive innovation is also referred to as breakthrough innovation or radical innovation. Disruptive innovation is more risky, uncertain and costly, while incremental innovation is more predictable and corresponds to the context of an organization.