Takeaways from IAMAI’s 'Pixels' 2018

I had the pleasure of attending the Internet and Mobile Association of India’s ‘Pixels’ event in Mumbai and this year the aim was to explore how mobile and internet connectivity is having an impact on distribution of entertainment and also changing the way we consume and experience online video content in India.

This blog aims to outline key takeaways from the event which was attended by industry leaders who have collectively made significant progress as India’s online video revolution intensifies:

#Content We have heard this several times before, however content is KING and several perspectives around this topic were discussed. From a technology point of view, digital content creation costs have come down, however getting the right talent pool (writers, directors, actors etc) for appropriate content is a challenge (and therefore more expensive) as that eco-system is growing as well. In addition, the depth of content is clearly more important than the width – better to focus on quality versus trying to get multiple pieces of content to please a wider audience.

#Consumption The OTT ecosystem in India is maturing quickly and we have gone from ‘1 GB a month to 1 GB a day data consumption’ – this is amongst the fastest data consumption growth stories and presents a massive opportunity for advertisers.

#Monetization of content was a hot topic of discussion and veterans from Sony, Hotstar, Culture Machine, Viacom 18, and the Times Group were in agreement that both advertising and subscription based players are evaluating several opportunities wherein both consumers and advertisers are willing to pay for quality content. However, AVOD (Advertising Video on Demand) remains to be the preferred mode of monetization as payments mechanisms are not frictionless yet and it will take a while before the intent of the user to pay is matched by the ability of the platform to receive payments.

#Inflection Point We are at an inflection point for media buying wherein the advertising plans of most major brands already have or are in the process of incorporating OTT as an integral part of their media plan allocations.

 #Subscriptions Indians are not used to the 'auto-pay' method of payment, when it comes to SVOD (Subscription Video on Demand). The payment eco-system is changing rapidly however, and the Netflix use case in the country has introduced the habit of paying for digital content via subscriptions.

#Regional language content is an area of tremendous growth and media organizations are bracing themselves for the surge of content consumption coming up as the next 100 million smartphone users enter the market.

#Technology Innovation has made it easy for content owners to launch OTT Platforms, however general comments focused more on content and user acquisition.

Let’s go #Brightcove. It is better to allow experts to assist with proven technology stacks and ‘scaling’ capabilities as record number of concurrent users watch content online. SonyLIV (A Brightcove customer) was recognized by veterans for offering a superior viewing experience to millions of viewers during significant sporting events even as YouTube went down during the same time.

#Branded Content is becoming an important cog in the OTT AVOD wheel. This strategy has matured well with ‘brand philosophies’ being woven into content pieces versus ‘product placements’ which are not subtle. The Viral Fever and Arre are leading the way with some fantastic brand integrations as part of their storytelling, however other mature platforms are experimenting with this strategy as well. Now, more than ever, brands are playing ball and willing to tell differentiated stories on digital platforms.

#Recommendations Several comments around the importance of creating personalized OTT experiences and recommending the right pieces of content. When a customer shows up at your doorstep, the platform has to throw up relevant pieces of content to engage the viewer – as you don’t get many chances with competition heating up in the space!

It has never been a better time for the 'Online Video' eco-system in India - opportunities galore and we are just getting started!