The future of entertainment & media in a hyperconnected world, india and pakistan


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Contents for interconnected platforms in a hyper-connected world need to be carefully tailored to create synergy between delivery and receiving ends.

Focus on contents instead of the carriers is need of the time.

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The future of entertainment & media in a hyperconnected world, india and pakistan

  1. 1. The Future of Entertainment & Media in a Hyperconnected World, India and Pakistan By: Zahid Hussain Khalid SUN&FZ Associates
  2. 2. Developed and Emerging Entertainment and Media Markets Source: PwC Outlook 2011 - 2015
  3. 3. Global Entertainment & Media Growth Projection Global E&M Growth from US$1.9 trillion in 2011 – 2015 to US$2.2 trillion in 2017 Source: PwC Outlook 2011-2015 and 2013-2017 The global E&M market will grow at a CAGR of 5.6% over the next five years, generating revenues in 2017 of US$2.2tn, up from US$1.6tn in 2012. Within this overall figure, all three sub- categories—advertising, consumer spend on content, and access—will continue to grow, but at varying rates.
  4. 4. The Penetration and the Room for More - VOD Ready Households in Europe and USA Native VOD ready-households (excluding hybrid) in Europe and USA Footprints of Digital Cable and IPTV strongly differ in Europe… Source: Over the top Video –The turning point, “The Dynamics of Contents and Media Industry”
  5. 5. Global Entertainment & Media Revenue Streams of the Future EIU/IBM global survey: Significant revenue streams of the future. Percentageof respondents who said the revenue stream would be a “4” or “5” on a 5-point scale, where 5 was “Very important” Source: IBM Institute for Business Value survey conducted by the Economist Intelligence Unit.
  6. 6. Networked Television Market: 2009 to 2014 (In millions) Category / Year 2009 2010 2011 2012 2013 2014 Networked Televisions 15.2 43.9 64.4 87.2 104.8 122.7 Networked TV Share 7.2 18.0 25.3 33.1 38.1 42.6 Total Global TV Market 210.8 243.5 254.2 263.3 275.2 287.8 Source: DisplaySearch, 2011
  7. 7. “Step back from the parts and look at the whole!” Declining Analog and Proliferating Digital Platforms “Complexity scientists assemble data, search for patterns and regularities, and build models to understand the dynamics and organizationof the system. They step back from the parts and look at the whole. “ Source:WEF’s Global Agenda Council on Complex Systems – “Perspectives on a Hyperconnected World - Insights from the science of Complexity”
  8. 8. 2020: 50 billion connecting devices Future is here Source: Telefonica’s Strategy – Pay TV and Content, Brussels, 25 October 2012
  9. 9. TV sets are already the best-selling Internet-enabled TV device Global, connected-TV and games-console sales, 2011-2016 Source: Informa Telecoms & Media
  10. 10. The Great TV Connectivity Gap or Marketing Opportunity Global, connected-TV installed base, 2011-2016 Source: Informa Telecoms & Media
  11. 11. The biggest disruptive threat to the current TV landscape Apple and Google thought to be the most likely disruptors* * The sum total of figures may not equal 100% because of rounding Source: Informa Telecoms & Media
  12. 12. Smart Phone and Tablet Screens are IN For accessing social networks (such as Facebook and Twitter) to interact around TV programming Tablets are and will be the key to successful second-screen strategies Source: Informa Telecoms & Media
  13. 13. Competing and Collaborating Business Models in the ECOSYSTEM Market Segment 2011 (B$) 2012E(B$) Growth y-y(%) Mobile Data Plans 76 83 9.5 Apps 2** 26* 31 Social Networking 15 16 18 Games --- 8 --- In-game items 2.1 2.5 18 Music --- 16 --- Video 2.9**** 3.6*** 24 Total Advertising Spending 220 235 7 Total 128 150 17 Mobile Handsets 220***** 235 7 *32 billionapps downloaded in 2012 **23 billionapps downloaded in 2011 ***280 billionvideos watched on mobile devices in 2011 ****108 billionvideos watched on mobile devices *****1.7 billionmobile handsets shipments in 2011 Source: Industry Data (Gartner, IDC, Informa Telecoms, Interactive Advertising Bureau, IPTS, Juniper Research, NPD, Strategy Analytics, PwC)
  14. 14. Three Key Innovation Areas and Six Targets… Source: IDATE, according to “Next Gen TV” report September 2009 CONVERGENCE OF SERVICES Target 1: Enhance online videos Target 2: Bring the web to the TV INTERACTIVE USAGE Target 3: Enhance the TV experience Target 4: Adapt Advertising to new TV viewing habits DIGITAL HOUSEHOLD Target 5: Create a new user interface Target 6: Integrate the TV set into the digital home
  15. 15. Access television content online by age Proportion of respondents accessing online TV weekly (%) Which, if any, of the following activities do you use home internet connection for? Source: Ofcam Consumer Research 2012
  16. 16. It’s Time to Facilitate Consumers’ Demand to Enjoy Microsoft has been working with partners the UltraViolet digital content ecosystem, supports multiple DRMs in securing digital content and allowing it to be enjoyed across a full range of devices that consumers might choose Source: Enabling the new media world
  17. 17. The Media Challenge Source: Dynamics of Media and Content Industries, Michael Gubbins, MCG Film and Media, Film Agency for Wales
  18. 18. New Contextual Philosophy for Integrated Multiplatform Content Packaging: Six Priority Actions Segment Innovate Experiment Mobilize Open Reorganize Source: IBM Business Consulting Services – “The End of Television as We Know it”
  19. 19. Will Networks be Extinct in Fifteen Years? And the Answer The beginning…but not nearly the end…of market experimentation Market changes in supply and demand are triggering trials of new business models. TV networks and content owners are trying to find a model that enables them to recapture some of the profitabilitythat goes away when people watch television differentlythan they have historically. Examples of emerging business models: The Beginning – Initial offers for viewing convenience Source: IBM Institute for Business Value survey conducted by the Economist Intelligence Unit.
  20. 20. Digital Technology Disrupts the E&M Value Chain Bloggers, citizen reporters, independents and application and game developers are challenging the traditional forms and styles of TV content development, packaging and presentation demanding innovation and meaningful on screen visible interactionfor social, economic and political change both at national and global levels SOURCE: Monetizing the multiplatform content portfolio, PwC
  21. 21. Upgraded TV Features, Its Value to Consumers and the Possibility of a Protracted Price War “Ifupgraded TV features don’t prove new value to consumers, competitionwill devolve to price alone, placing pressure across the value chain.” EIU/IBM global survey: Triple play pricing strategies Percentageof respondents Source: IBM Institute for Business Value survey conducted by the Economist Intelligence Unit.
  22. 22. “Will Internet content aggregators circumvent traditional programmers?” EIU/IBM global survey: Network executives’ response to “What are the most significant competitive challenges your company will face in 5-7 years?” “Today’s programmers– the TV content networks – rank Internet services among the top areas of concern” Percentage of respondents Source: IBM Institute for Business Value survey conducted by the Economist Intelligence Unit.
  23. 23. A Hyperconnected World “The Internet and social media now seem to connect each person to everyone else, and to make informationavailableto all.” How and where does the televisionfit in? Source:WEF’s Global Agenda Council on Complex Systems – “Perspectives on a Hyperconnected World - Insights from the science of Complexity”
  24. 24. Two Basic Challenges for TV Networks in a Hyperconnected World Maintainingtheir respective positionsin the national and global television marketplace and re-legitimizingwhat has been its main source of creativity, i. e. Public Service Broadcasting
  25. 25. Two Key Market Drivers Openness of access channels and levels of “meaningful consumer involvement” with media BottomLine: Creation of High Quality KnowledgeableConsumer Listening Platforms(CLPs) An example: The Federal Reserve Bank wants to develop a CLP based on social media analytics what people are saying and commentingabout the economy Source: IBM Business Consulting Services – “The End of Television as We Know it”
  26. 26. Consumer Bimodality A Coexistence of Two Types of TV Channel Users “While one consumer segment remains largely passive in the living room, the other will force radical change in business models in a search for anytime, anywhere content through multiple channels.” “The tech-and fashion-forwardconsumer segment leads to a world of platform-agnostic content, fluid mobilityof media experiences, individualizedpricing schemes and an end to the traditional concept of release windows.” Source: IBM Business Consulting Services – “The End of Television as We Know it”
  27. 27. The Challenge: How to wake up this man? Does he need an “Irresistible Content Pull Shock?”
  28. 28. Need for Creative Wake Up Call Study, Analyze, Package And Brand The Lives Of The Role Models In Every Walk Of Life As Beacons of Hope Focuson Shakespeare’sSeven Stages of Life
  29. 29. Without Contents Reflecting Realities of the Seven Stages of Life Entertainment and Media are Nothing but Illusion At each stage of life the needs and obligations of an individual change. The family, the society and the government are supposed to design rights and obligations keeping in view a human being’s needs and ability to contribute to family, society and the government. E&M content developers have to see that the balance between needs and expected contribution in return for taking care of those needs by family, society and the government are maintained or not. …And that is the key to content designing and engineering for E&M Networks. Finding the key for E&M Content Development and Shakespeare’sSeven Stages of Life from As You Like It… Source: “Fixing The Fix Point Charts Of TV Channels:
  30. 30. When the Media Comes Out of Now Widely Known Deceptive Illusion, This man will Wake Up It is not that no one is doing anything.A lot is happeningand a LOT MORE needs to happen.
  31. 31. Four Core Areas to Begin With Shifting Focus from Carriage to Content Areas that are focused and need to be focused “The past Plan expenditures on televisionwere characterizedby creation of carriage infrastructurewith little or no provision of funds to promote quality in the contents… It is felt that funding must be provided for programs suitable for public service broadcasting…This can be achieved by shifting Plan funding from carriage to content.” Source: Report of the working group on Information and broadcasting sector for the formulation of the 10th five year plan 2002-2007, Government of India Planning Commission, October 2001 Content Creation and Software Carriage and Technology Human Resource Development Traditional Media Unit
  32. 32. Program Mix Synergy and Three Areas of Concern The Need for Joint Campaigns in Target Areas “The traditional media units have been carrying out their programs in isolation of each other and are spread too thinly on the ground to be effective. It is necessary to bring about synergy in their efforts.” Areas to concentrate on Source: Report of the working group on Information and broadcasting sector for the formulation of the 10th five year plan 2002-2007, Government of India Planning Commission, October 2001 Coverage Broadcast Coverage is poor on account of quality signal Poverty Inabilityon account of poverty to own or access TV and radio sets Electricity Lack of ElectricPower
  33. 33. Risks in and Needed Funding for Programs on Social Issues Some of the Recommendations of the 10th Five Year Plan’s Working Group 1. Utilization of alternative mechanisms for content creation. Institutions like National School of Drama, Public Service Broadcasting Trust, SPIC MACAY and Institutes like FTII, SRFTII etc. should be provided sustained funding for creation of content. 2. Fund should be provided for content creation, at least for a period of two years before the success of the endeavor is evaluated. In the initial stages, the funding should be 100% to enable the content creators to experiment with rich and diverse content. 3. Content creation should be done at the national, state, local and community level. It should cover diverse subjects like population, health, environment, rural development, women’s issues also. The Group felt the need for emphasis on content relating to performing arts, events relating to dance, drama and music, festivals of India, as well as of content specificallymeant for children. 4. 25% of the total content created by eminent producers / directors, whose style should then be emulated up by other content creators. 5. That greater autonomy / decentralized financial powers be devolved on the regional Kandras to allow speedier implementation creativity to flourish and ideas to flow. 6. The need for proper feedback mechanism which would measure the impact of the content created at the gross-root level. There is need for in-depth market survey rather than reliance on the present viewershiprating mechanisms. 7. The option of attracting “Venture Capital” in the field should also be explored. Source: Report of the working group on Information and broadcasting sector for the formulation of the 10th five year plan 2002-2007, Government of India Planning Commission, October 2001
  34. 34. Review of institutional arrangements for creation of content and advertising in 11th Plan Working Group of the 11th Five Year Plan focused on: The Working Group highlighted the need for considering following best international standards The Working Group also suggested the creation of a Public Service Broadcasting Council Source: Report of the working group on Information and broadcasting sector for the formulation of the 11th five year plan 2007-2012, Government of India Planning Commission, October 2001 • Reviewed Institutional arrangements for content for public service broadcast including local content in foreign carriersInstitutional Arrangements • Defined the role of governmentvis-à-vis the private sectorThe Role of Government • Suggested policy measures for promoting access to media platforms for civil society in public and private sectorsPolicy Recommendations Clarity of objective, a sense of mission Resources Empowering structure and process Independence/ Autonomy Support of civil society
  35. 35. The best example of local contextualization of global contents: Indianization of Global TV Brands When a country takes lead in cultural nationalizing of affiliate global brands, the channel owners in other countries are left with no choice but to follow that country in everything from concept development to format duplication. And that is what is happening in India and Pakistan.
  36. 36. Indianization of the Best Brains and Networks Behind Global Entertainment and Media Contents It is not important at all how much money an entrepreneur makes. It is important to see how and where he reinvests the money that he makes. For that the entrepreneur has to be a “Creative Visionary” surrounded by an equally brilliantteam. A True Media Entrepreneur’s Vision Goes Beyond Barriers and Boundaries
  37. 37. National Cultural Contexts of Global Contents Local identities and cultures have necessitated the territorial, organizationaland creative decentralizationof global media conglomeratesand their syndicated licensed programs, contents and formats. Source: Statistical, Ecosystems and Competitiveness Analysis of the Media and Content Industries: European Television in the New Media Landscape
  38. 38. What is happening on Pakistan and India’s Entertainment and Media Front INDIANIZATION OF PAKISTAN’S ELECTRONIC MEDIA: The beginning of the end A comparative review of Indian and Pakistani television channels reveal the following interesting program priority highlights. PAKISTANI CHANNELS INDIAN CHANNELS Focus on (With FEW Exceptions) Focus on Concept Piracy: (Almost Common) Religion Indianization (Indian Shows) Indian Culture (Alien Props) National Pride (Indian Films) Family Relations Over-exposureof unworthy Politicians, retired bureaucrats / Social Sector (Special Children) Generals & over-influenced/ biased & westernizedintellectuals (CommunityAffairs) Cheap comedy / Misplaced Comedy Shows (Inspirational Themes) Sub-standardresearch Segment based approach Personal Praise to the extent of cheapness Motivational subjects Telecast of cheap songs/film clips in news Vulgar, PG & X-rated sub-standardcomedy Irritating Commercial breaks and In-house Promos Soaps based on an endless series of conspiracies Additional Source: “The State of Electronic Media in Pakistan” Incredible India has two contradictory on-screen faces: One is seen in Comedy Circus and other in TV Soaps…One is partially naked and vulgar and the other is religious, cultured and socially responsible. Pakistan is presented as an “intended secular state” in the making by media for known reasons through an insignificant, almost hated and irrelevant westernized high-middle class educated minority, a bird flying astrologist and his likeminded clan who do not seem to have any respect for religion, moral obligations, cultural values and social norms. And this irritating disrespect is seen in discussion, religious (Disgustingly noisy and over- commercialized Ramzan Transmissions of almost all TV channels) and entertainment programs. Now, a few entertainment channels have realized the importance of showing some respect for viewers’ majority who have great faith in God and Religion(s). BUT, it is the country’s leading network that MATTERS the MOST!
  39. 39. Amn Ki Asha? Government puts 24 foreign 'hate channels' on notice for showing And What Is This? In Pakistan,They Call It Amn Ki Asha? anti-IndiaTV shows after intelligence alert* Is it reporting error? Or is it a sit-com? Someone has to define on-screen and off-screendiplomacy *Source:
  40. 40. …And now see what is happening in Pakistan and India Governance Religious Fanaticism Law and Order Religious Hypocrisy Social Awareness and Mobilization Studio Discussion One has to notice the difference between what needs to happen and what is happening in Pakistan and India. You can differentiate between the right and the wrong approach. The first is focused on system and the second targets individuals to allegedly “FACILITATE” psy-war militaryoperation other than war in and around Pakistan giving rise to suspicion and credibilityquestion mark.
  41. 41. What is more important: content carriers or the contents? No one but the people have the right to judge what is the best of what they see Are Programs of Indian TV Channels and screening of Bollywood Films REALLY Banned in Pakistan? Source:
  42. 42.