The media industry is going through a transformation where digital is gaining a bigger share
From the rise of video streaming platforms to music apps to advertising moving onto digital – It has been a leap of faith for the media and entertainment industry, which is now transcending towards digital. Finance Minister Nirmala Sitharaman on Saturday, announced a host of initiatives under ‘New Economy’. “For new-age businesses which are being built online, moves such as setting up data centre parks to giving impetus to artificial intelligence (AI) and machine learning (ML) will further boost the growth. Data and connectivity is the foundation of businesses and it is important for the base to solidify,” Karan Bedi, CEO, MX Player, said.
Some of the steps include the creation of National Mission on Quantum Technologies and applications with an outlay of proposed Rs 8,000 crore proposed. Roll out of a policy to enable the private sector to build Data Centre parks throughout the country. “It will enable our firms to skilfully incorporate data in every step of their value chains,” FM said. Further, the government plans for Fibre to the Home (FTTH) connections through Bharatnet which will link 100,000-gram panchayats this year. It has proposed to provide Rs 6,000 crore to Bharatnet programme in 2020-21. According to Ashish Bhasin, CEO, APAC and chairman, India, Dentsu Aegis Network, the government’s move to establish data centres will not only allow internal management of data, thereby giving a competitive edge, India can also become a global data farm or repository. “With the government backing, AI and ML businesses like ours which is heavy on digital has a huge growth opportunity,” Bhasin noted.
The digital advertising industry which was valued at $1.93 billion in 2019 is estimated to grow at a CAGR of 27.42% to reach $8.25 billion by 2025, as per the recently released DAN e4m report. Much of the growth is driven by the penetration of smartphones which are largely sold online. Online channel reported a 45% growth in sales of smartphones while brick-and-mortar stores posted just 9% growth in terms of volume, shows data shared by GfK. For Apaksh Gupta, CEO, One Impression – an influencer marketing platform, over the years the company’s data has grown by 18%-20% year-on-year from 30,000 to now 14 million influencers. “The move is a good one, however, the challenge will reside at an implementation level — for example acquisition of land and selecting the right city, among others,” Gupta noted.
The DAN e4m Digital report further stated that 53% of the Internet users watch videos on YouTube on a monthly basis, the numbers being as high as 72% for 18-24 years. 30% of the audience sees more than even videos through Whatsapp in a week. With video gradually grabbing a big space online, OTT players among others feel the move will allow them to ink international deals. “The move will allow Internet businesses to create ‘propriety tech’, besides sealing co-funded international partnership,” Tarun Katial, CEO, ZEE5, said. On digital, social media will account for 28% of the marketing budget followed by paid search 25% and video at 21%, the digital report stated.