Indian consumers are consuming 190 minutes of video per user per day across different platforms, according to the key findings of a report titled ‘One Consumer, Many Interactions’ by the Confederation of Indian Industries (CII) and Boston Consulting Group (BCG). In the last five years, video consumption in India has been growing at a rate of 8%.
There are more than 30 digital platforms, along with a huge number of TV channels, with an average Indian consuming 10-15 channels per day and 2-3 applications in any given month, the report added. However, the lack of a uniform measuring metric for traditional and digital platforms poses a challenge in terms of advertising, it noted.
While the number of broadband users has become 2X (~480 million broadband users across mobile and fixed), the data consumption has become 10X (~10 GB per user per month) over the past 2-3 years, the study said.
Despite rapid digital growth in the country, traditional and non-traditional media will coexist and grow over the next few years. “We believe this coexistence and multi-modal growth will continue in the foreseeable future,” the report said. According to the study, India is a multi-model market, considering the consumer has access to multiple platforms.
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On the other hand, the study showed that over 95% of TV households in the country are single-screen and therefore TV consumptions in the country mostly happen in the family-viewing setting. “There might be a slowdown of growth in traditional media, but there is still much headroom for growth, given the penetration story has not played out completely,” said Kanchan Samtani, partner and director of BCG.
Also, the overall media consumption growth continues to outpace its global counterparts with 9% CAGR over the last six years. The report said that per-capita consumption is growing at twice the speed of China and nine times that of the US. The rapid change is especially a cause for concern for modern media companies, which have to cope with and evolve accordingly.
“This change is not the future, but rather is here and now,” said Sudhanshu Vats, chairman, CII committee on Media and Entertainment, and group CEO, Viacom 18 Media, India.
In 2017, video players injected about $4-5 billion in content, an increase of 14% higher the investment they made in 2016. Over-the-top (OTT) players across the industry are investing heavily in originals. Amazon alone has planned the release of 18 new original series, including some exclusives, this year.
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Source: Financial Express