The Decadal Change
The power of media is in its ability to directly connect with the consumer. There is no other sector that can truly make this claim. Whether it is products or services, a conduit is needed to bridge the gap, and this is why the media and entertainment (M&E) sector plays a critical role across sectors.
It is fascinating how the M&E sector has transformed over just a span of five years. True, the pandemic played a role in triggering change, but the crisis did not bring the change, it only accelerated an idea whose time had come. If I had to single out one element ‒ a no-brainer really ‒ that underlies all these changes, it is digital. But if I had to talk of one aspect that is truly driving and riding the change, it is OTT (over the top) video streaming, all formats included.
The signs are all there. According to a CII and Boston Consulting Group report, the Indian OTT streaming industry is expected to grow to $13-15 billion over the next decade at a CAGR of 22-25 per cent. This constantly growing space is among the most competitive with over 40 players in India already. One may think this is too cluttered but if you see closer, maybe not.
We are talking of connecting India’s next billion and already the foundation for this ambition is in place. Both global and local players are creating made-for-India strategies, and they are just about getting started. In this special issue, I had the pleasure of speaking to Amazon Prime Video India’s Country Head, Gaurav Gandhi, and see the team there at work. The progress they made so far is commendable, no doubt, but what really gets one’s attention is the commitment to a long-term vision, and how nuanced this strategy really is.
Gaurav said in the interview that we are in a once-in-a-lifetime opportunity to shape the face of entertainment in India. This struck a chord, as I find myself completely in agreement. We are already seeing the subscriber base growing for paid content, and viewers’ appetites becoming more diverse. I would have never imagined people discussing storylines of Korean shows the way they would discuss the daily TV fare.
This shift is extraordinary. And one needs to see it in the backdrop of the big picture.
A reorder is in the offing. We were still looking at what the Sony-Zee merger meant, and there already is the Murdoch-Shankar combine that is slated to take 40 per cent in Viacom18, with Reliance still maintaining the majority stake. Large-scale collaborations will bring their impact, but in the process the M&E sector will continue to flourish.
In this issue, we not only do exclusive interviews with some of these industry leaders, and examine how revenue opportunities play out, but we also speak to a host of experts on their Budget 2022 expectations. Some thoughts from these interactions provoke debates, each of which I believe, is important to India’s overall growth.
