Just been wrapping up the content for a pricing innovation workshop I’m delivering in a couple of week when I came across this article – Consumer choices to shape monetization models in digital media. The reason why it caught my attention is that it resonated well with one of the key messages that had emerged from the workshop. That being – The evolution of customer preferences and expectations is setting the pace of Internet innovation – and that it is far outpacing anything operators are rolling out.
The article delves into a report on the Indian media and entertainment industry. There is a lot here for operators to pay attention to.
- According to the just-released report on the media and entertainment industry by industry lobby group Federation of Indian Chambers of Commerce and Industry (Ficci) and consulting firm KPMG, the digital advertising industry grew from Rs.3,010 crore in 2013 to Rs.4,350 crore in 2014, an increase of 44.5%. This has been driven by steady growth in ad spending across digital platforms. “The bottom line is that Indians are willing to pay for content that they want to consume,” said Ajit Mohan, head, digital, Star India.
- While the monthly active video consumption in India has been growing at a compounded annual growth rate of 43%, paid video consumption is expected to move at a much faster rate, at 57%, he said. “This equals a huge ad sales opportunity.” He added that new technology and virtual reality, along with a focus on regional languages will shape the future of digital consumption.
- With 93% of Internet usage in India taking place on mobile devices, the need is to look for revenue models that would support Internet on the mobile, said Srinivasan Gopalan, director and chief executive officer, global voice and data business, Bharti Airtel Ltd. “The confluence of operators and content providers and an enabling ecosystem is needed for digital platforms to create successful revenue models,” he said.
My advice for operators: No sense sitting at the back of the bus. If the customer is now in the driver’s seat, the operators should at least sit up front to get a good look where we are going.