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The Great Disruption

Year 2015 in review

Adoption of digital technologies increased in 2015.

We are seeing customer expectations undergoing a shift where they are interacting with their brands more frequently and dynamically across multiple channels.

Customers have started consuming content on multiple devices simultaneously. This is posing new challenges for marketers.

The fast pace of growth in implementation of digital infrastructure and the assimilation of digital mediums into mainstream has led to a continuous increase of digital penetration.

With the connected consumer becoming so common and the increase in penetration of new devices like wearables, VR/AR the way content is developed and consumed has evolved.

Services like PeriscopeTM TV, Netflix and Hotstar, rich video content continues to gain traction.

High- res formats including HD and 4K to become ubiquitous in the near future. With this explosion of content and convergence of delivery platforms, monetization is a key challenge facing the players in the M&E industry.

Digital marketing has become an independent focus for boardroom discussions. Companies are now increasingly deliberating on how consumers interact and behave with digital channels.

Key trends

• Internet Users - The number of internet users are likely to cross 790 million by 2020. The number of people who access internet through their mobile phones in India is estimated to be greater than 60 Per cent.
• 4G Device Growth - Over 9.3 million 4G smartphones shipped in Q3 2015, which is a growth of 21 Per cent compared to last year. Samsung has emerged as the biggest 4G smartphone player in India with popular sub USD 150 models and a market share of 62 per cent.
• Mobility first will gain ground - The number of smartphone users is likely to cross 180 million in 2015. Mobile devices will be the center to the disruption caused by IoT.
• New devices - such as wearables, VR/AR are changing how we are consuming content.
• IoT - IoT will mean that there will be an estimated 212 billion connected devices by 2020. As per the IDC conference in 2015, this will mean that not only these devices will be communicating with each other but this communication will need intelligence through smarter devices and computation capabilities.
• Personalization is becoming very critical to reach and engage with the customers and Analytics will be the key digital technology to be leveraged.
• Consuming Content is changing with increased
  - consumption of VoD platforms
  - consumption of high resolution content
  - second screen consumption
  - mobile video based consumption
  - mobile gaming content
  - regional content
  - short duration content consumption on mobile
  - use of digital assistants

Industry challenges

• Success will be dependent on execution - Government initiatives through the Digital India initiative and increase in the capex cycle of telecom firms will only add value if the implementation is done in an effective and timely manner
• Investment and monetization - The key question will be to make the right investments in technology and use it as a lever to increase monetization which is currently a major challenge in the industry

Future outlook

Successful and timely execution of government initiatives as well as increased capex investment from telco companies will create the right base for us to adopt new technological innovations and sustain it for the future to come.

Rural India will drive the next phase of the growth story for Digital India.

Customer/Consumer of content will have the power to shape new trends.

Marketers will have to be creative to use these disruptions as an opportunity to create new experiences for the end consumers in a cost effective way.

Digital technologies are enabling tremendous opportunities in terms of enablement, measurement and experience delivery for the M&E industry. From an inward perspective, they have to make sure that investments are made in the right technologies and there is a clear long terms sustainable plan. From an outward perspective, they will have to figure out how revenue can be unlocked from these digital innovations.
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