India is going Digital, Are you Ready?

Today the talk of the nation is digitization and usage of internet to make life easy. The government is taking actions towards making a common man go digital. Telecom Companies are taking great stress to bring in high-speed internet at affordable rates to consumers. Owing to a wide range of smartphones and internet penetration, the internet is accessible at our figure tips. Be it shopping, gaming, networking or plain simple entertainment, we can access everything on our phones. Handheld communication devices have helped consumers pass the barrier of place, space and time and have made our lives convenient. Today we can shop at midnight, catch up on our favorite TV series while commuting to work or relax and play a game till dawn without disturbing others. Because of changing consumer behavior the consumption and growth patterns are changing in the economy. Media and Entertainment is a prime example of how the internet and its easy availability is changing the economy. 

According to KPMG report, titled Media for the masses: The promise unfolds published in 2017, the Media and Entertainment sector is expected to grow at a CAGR of 13.9% and touch US$ 37.55 billion by 2021. Its one of the very few sectors that's growing faster than countries GDP rate, It clearly suggests that the Indians are going big on entertainment.

We can attribute a major chunk of this growth to the rising high-speed internet penetration in India. The process of 3G and 4G data availability has been accelerated by the launch of Reliance Jio. Availability of internet coupled by India being a mobile phone first market has propelled growth in the M&E sector. In fact, digital media is expected to grow at 30.8%, faster than any other segments of the sector. 

Easy internet accessibility and aspirational lifestyle aiming the west is changing the behavior of the Indian consumer. Today it is very common for an Indian consumer to follow Hollywood movies, English shows and listen to Western music. This has become a trend because of huge English speaking population and easy availability, all thanks to the Internet. In true sense, the internet has made our world a global village, and we my friends are willing participants in this process.

The change in trend can be witnessed as more and more national and international players are coming up with online viewing platforms offering an array of content. Some of the most potential entrants from India are Hotstar, Voot, TVF etc and international brands are Netflix, Amazon Prime. To woo the Indian consumer national players are offering a local and regional content as well as are providing a platform to view a variety of International shows. On the other hand, global players like Amazon Prime and Netflix are providing original as well as Bollywood content in regional languages.

This seeming rise in the digital entertainment sector is because of two fundamental reasons. International markets which use online streaming platforms are saturated. On the other hand, India has a vast population, good economic fundamentals and the popularity of international content like Friends, Bigbang theory, How I met your mother, Game of Thrones etc. is growing popularity amongst the youth in India. India being a youth nation these international and national firms have a ready customer base. Platforms like Netflix, Amazon Prime, and Hotstar got a boost in their launch phase from Reliance Jio as it brought the high-speed internet data prices to an all-time low making it affordable to a large population base.  

India is a curious mix of developing and developed parts and consumer behavior is also affected by this. We have active mass media in form of television. But the tide has changed in terms of content demanded in the past five years or so. Today even mass media is moving towards niches and is aiming at providing content demanded by different sections of the mass (fan base). Unlike the past, blanket content is not working and you cant advertise everywhere either. And the best way to reach a niche is taking the online route. This is because the target audience is scattered geographically, values freedom and doesn’t like to be bound by time for seeking entertainment. The Internet is helping solve all these barriers and reaching this population which is the future of the nation.

With all my experience and from all that I see and observe around, one thing is certain - The Media and Entertainment tide is changing. The sector is heading towards a revolution and democratic (you like it or not), no more a FAMILY business. And like all the revolutions, it will leave the unchanged decaying and obsolete. If you are in this sector and not eyeing towards going digital and making your presence felt on the internet you are the next typewriter. You will be treasured in the hearts of the consumer but will never be used again. This is the time to change, to revolutionize and catch the train before it is too late.