By Vanita Kohli-Khandekar       Vanita Kohli-Khandekar
   More media   The battle for scale   The ghettoisation of media consumption                           Vanita Kohli-Kh...
Vanita Kohli-Khandekar
   More mass media   More mass media that consumers pay for                           Vanita Kohli-Khandekar
   1.2 billion people          1.3 billion people   9000 cinema screens         9230 cinema screens                   ...
   We are one of the most voluminous media markets in    the world   And yet one of the most under-penetrated ones.   E...
   Post production              Multiplexes    studios (Pixion, Prime,      Digital cinema screens    Real, Reliance)  ...
800            710700600500400   333            345                                           2000                        ...
35,000                  33,00030,00025,00020,000               18,000                                                     ...
   There is a strong positive correlation between    investment into infrastructure and growth.   So all the money flowi...
Vanita Kohli-Khandekar
600050004000300020001000   0       Revenue (Rs crore)                   Vanita Kohli-Khandekar
   The largest mobile company in India, Bharti    Airtel is almost $12 billion in top line   The Brazilian TV market is ...
   Even if cable TV/DTH penetration goes from    110 mn to 142 million you would have added    only a billion dollars to ...
   Pricing power limited      Pricing power limited    by extreme                  by extreme    fragmentation          ...
Homes (mn)     Channels                                                               2000                                ...
   Just look at TV   It is roughly 50 per cent of the M&E industry in India    but ad rates and prices have have actuall...
Vanita Kohli-Khandekar
   More media, but still we limit our choices   More specialised consumption   More about me, myself, my tastes        ...
   Five years back when you read a newspaper    or magazine or watched TV you were willy-    nilly exposed to stuff that ...
   Because we don’t allow serendipity in our media    consumption habits, we ghettoise ourselves to an    area or a point...
   This has created the paradox of the    distracted viewer/listeners/surfer   The more distracted we are the more the  ...
   An online reader of a newspaper in the US    commands less than 14 times the ad rates    that a print one does.   If ...
   So the market still attaches a premium to our ability to    concentrate, absorb and take in what it has to offer.   O...
   Even as we scale up and increase penetration    there are sub-textual changes that both    advertisers and media owner...
Vanita Kohli-Khandekar
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The Future of Media - Vanita Kohli-Khandekar at the IndiaSocial Summit 2012

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Vanita Kohli-Khandekar's presentation from the Leader Speak: Future of Media at the IndiaSocial Summit 2012.

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  • Advertising spends have increased by 35% from 2013 to 2014. This shows how much growth is happening in the advertising industry of the country.
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The Future of Media - Vanita Kohli-Khandekar at the IndiaSocial Summit 2012

  1. 1. By Vanita Kohli-Khandekar Vanita Kohli-Khandekar
  2. 2.  More media The battle for scale The ghettoisation of media consumption Vanita Kohli-Khandekar
  3. 3. Vanita Kohli-Khandekar
  4. 4.  More mass media More mass media that consumers pay for Vanita Kohli-Khandekar
  5. 5.  1.2 billion people  1.3 billion people 9000 cinema screens  9230 cinema screens  414 million TV homes 142 million TV homes  136 million copies of 110 million copies of newspapers sold daily newspapers sold daily  1 billion mobile 873 million mobile phones phones  100 million PCs 55 million PCsIndia - $16 billion media China - $86 billion mediaand entertainment industry and entertainment industry Vanita Kohli-Khandekar
  6. 6.  We are one of the most voluminous media markets in the world And yet one of the most under-penetrated ones. Except perhaps for newspapers and cinema screens, we are nowhere close to China. And investors know that. That is why a bulk of the investment in media – more than $6 billion so far – has been happening in media infrastructure. That is where all the money is going. Vanita Kohli-Khandekar 6
  7. 7.  Post production  Multiplexes studios (Pixion, Prime,  Digital cinema screens Real, Reliance)  DTH Production studios  Digital cable  Mobile phones Outsourcing (Bharti,  Internet connections NDTV, Reliance)  PCs More news bureaus,  Smart phones print companies  TabletsSupply side Demand side Vanita Kohli-Khandekar
  8. 8. 800 710700600500400 333 345 2000 320300 232 2010200 177 122 100100 80 Figures in 11 million 0 TV Print Films Radio Internet Vanita Kohli-Khandekar
  9. 9. 35,000 33,00030,00025,00020,000 18,000 200015,000 14,000 2010 10,00010,000 7,000 Figures 5,000 2,600 1,000 1,400 in Rs crore 100 100 0 TV Print Films Radio Internet Vanita Kohli-Khandekar
  10. 10.  There is a strong positive correlation between investment into infrastructure and growth. So all the money flowing in means more television viewers, more cinema goers, more newspaper readers and more mobile and internet users. That means more films, TV shows, radio programmes and variety because higher the penetration the greater is the ability of the industry to monetise content. To my mind if we keep expanding that base, the biggest challenge the M&E business faces can be met with some degree of success. And that brings us to the second prediction Vanita Kohli-Khandekar 10
  11. 11. Vanita Kohli-Khandekar
  12. 12. 600050004000300020001000 0 Revenue (Rs crore) Vanita Kohli-Khandekar
  13. 13.  The largest mobile company in India, Bharti Airtel is almost $12 billion in top line The Brazilian TV market is less than half of India in volumes and twice as profitable The US film industry makes five times the money India does at the box office, with half the films. Vanita Kohli-Khandekar
  14. 14.  Even if cable TV/DTH penetration goes from 110 mn to 142 million you would have added only a billion dollars to industry top line If TV penetration increases by 10 per cent of total HHs, you add another $82 million dollars to industry top line If screen count goes up by 2,000, you add a few hundred crores to top line. Vanita Kohli-Khandekar
  15. 15.  Pricing power limited  Pricing power limited by extreme by extreme fragmentation fragmentation Regulation/taxesConsumers Advertisers Vanita Kohli-Khandekar 15
  16. 16. Homes (mn) Channels 2000 2010Op Margins (%) 0 100 200 300 400 500 600 700 Vanita Kohli-Khandekar
  17. 17.  Just look at TV It is roughly 50 per cent of the M&E industry in India but ad rates and prices have have actually fallen in ten years. The fact is that without pricing power monetising growth, even if penetration happens is a problem. This is true across media segments. So the battle for scale will continue, till some level of consolidation happens and pricing power is restored to the market. Vanita Kohli-Khandekar 17
  18. 18. Vanita Kohli-Khandekar
  19. 19.  More media, but still we limit our choices More specialised consumption More about me, myself, my tastes Vanita Kohli-Khandekar
  20. 20.  Five years back when you read a newspaper or magazine or watched TV you were willy- nilly exposed to stuff that bored you, interested you mildly or gripped you though you never thought it would. You would end up reading about things that you might not have thought interested you. Now there is more democratisation of media, more formats, devices and content, but we choose to limit our choices. Eg a Twitter feed Vanita Kohli-Khandekar 20
  21. 21.  Because we don’t allow serendipity in our media consumption habits, we ghettoise ourselves to an area or a point of view. We don’t notice other points of views or subjects or pieces of knowledge. As a parallel eg - there is a huge body of research that shows that consuming information on new media devices chips away at our ability to read, absorb and reflect on information. We browse, power read and the best of readers can’t take in text for more than a few minutes. Vanita Kohli-Khandekar 21
  22. 22.  This has created the paradox of the distracted viewer/listeners/surfer The more distracted we are the more the advertiser and media owners seek to get a large mass of us together, because that is the only way we make any economic sense. Vanita Kohli-Khandekar 22
  23. 23.  An online reader of a newspaper in the US commands less than 14 times the ad rates that a print one does. If you see Frasier on TV while your friend sees it online at the same time, you are the consumer advertisers will pay to reach. Vanita Kohli-Khandekar 23
  24. 24.  So the market still attaches a premium to our ability to concentrate, absorb and take in what it has to offer. One has to wonder if it does that to serendipity as well. Note - newspapers still have the best rates and are the most profitable media segment to be in, India. What a lot of the new media technologies offer is the ability to cut yourself up into small slivers of interests. While that is very nice , there is the whole issue of how to make a business out of this. Because a multi-tasking consumer, not willing to pay for all the media he is using, is of little use to the advertiser as well. Vanita Kohli-Khandekar 24
  25. 25.  Even as we scale up and increase penetration there are sub-textual changes that both advertisers and media owners will have to tackle. This then is the thought I will leave you with Vanita Kohli-Khandekar 25
  26. 26. Vanita Kohli-Khandekar

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