Monetising Mobile 2: Hungama


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Albert Almeida of Hungama outlines 10 things you didn't know about the Indian mobile content market. This presentation was given at ME's Monetising Mobile conference in September 2010.

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  • The urban consumer is far ahead in terms of mobile penetration88% urban households own a cell phone 1 out of 3 urban consumers claim to have multiple connections Dual SIM sales account for 15% of devices sold and is expected to reach 25% by end of 2011
  • Have as much propensity to own multiple connections as urban consumers Are key drivers for growthRural consumer driven not just by need for connectivity but also VAS servicesCustomized crop & weather advice for farmers and at-sea forecast for fisherman offered by Vodafone, Reuters & BSNL are big hits
  • Sachet pricing Full song download @ Re.1; added 6,00,000 consumers in six months of launch Vodafone pack @ Rs. 4 (discuss with Al)
  • Largest young, mobile population in the worldEstimated at 230 Mn+ and growingEvery second teenager has a cell phone Indian youth place the mobile higher than basic necessities of food and shelter Mobile is the key source to listening to music for over 50% of the youth
  • Single / unmarried consumers are 25% of the market Basic high school level education among a whopping 2/3rd
  • Mobile Internet grew 120% to reach approximately 12 Mn consumers and is around 25% of all Internet users Price and low speeds remain key impediments Google saw a 50X jump in traffic on Google Mobile from Aircel consumers after the launch of $2 / month Pocket Internet Card
  • Caller tunes are changed as often as 8 times / year as against 2 times / year in the UK Upto 40 Mn images downloaded per year Handsets themselves are replaced on an average once every 18 months
  • Smartphone devices estimated to be worth $900 Mn in 2009-10 (-23%) in value but (+122%) in volume to around 5 Mn units
  • Monetising Mobile 2: Hungama

    1. 1. 10ThingsYou Didn’t Know About The Indian Mobile Consumer<br />Monetizing Mobile in Emerging Markets<br />London, September 2010<br />
    2. 2. India … Big On Heart & In Size <br />2<br />
    3. 3. A Billion strong consumer base <br />Among the world largest & fastest growing economies <br />The world’s second largest mobile market<br />Over 3X more mobile phones than televisions <br />Mobile phones leading the next wave of consumer revolution<br />India: Comfort In Numbers<br />3<br />
    4. 4. Indian Mobile Industry<br />Set to overtake China as the largest mobile population by 2013 <br />Currently valued @$40 Bn and 650Mn+ subscriptions <br />Characterized by low ARPU ($3.5) and a high rate of consumer churn <br />Provides as many Opportunities as Challenges<br />4<br />
    5. 5. The Indian Mobile Consumer<br />10 Things You Probably Didn’t Know<br />5<br />
    6. 6. The actual subscriber base is approximately 440 Mn<br />Still larger than the entire population of USA <br />Explains the popularity of the dual SIM device (15% share)<br />Tele-density in urban India has crossed 100%<br />1. An Irresistible Number<br />6<br />
    7. 7. 2. Captivating The Grassroot Consumer Too<br /><ul><li>Rural consumers form half the Indian mobile universe but @20% penetration, still has potential to grow
    8. 8. Adoption of services driven by VAS services besides mere calling </li></ul>7<br />
    9. 9. 3. Have Small Pockets But Big Dreams <br />Essentially a low ARPU, prepaid market (@98%)<br />Sachet pricing key to success for innovative products<br />Full song downloads @Re.1 added 6,00,000 consumers<br />8<br />
    10. 10. 4. Are Young, Restless & Mobile <br />50% consumers are less than 30 years old. In fact the new age mantra of the youth is Kapda (clothing) – Music – Mobile<br />By 2011, 1 in 5 young mobile consumers will be from India; even today every 2nd teenager already has a mobile <br />9<br />
    11. 11. 5. Helps Them Stay Connected ‘Anytime, Anywhere’<br />My mobile is <br />A mail box / a social connect device / a jukebox / a chat device<br />Facebook is the 3rd most visited site and has seen a YoY growth of over 600%<br />A whopping over 50% claim the mobile to be their primary device for music consumption <br />10<br />
    12. 12. Mobile internet users comprise 25% of all Internet users and have grown by 120% in the last year <br />While trial is a challenge, adoption is almost a given <br />Of all mobile Internet users, 63% use it daily <br />With 3G coming in data consumption is set to increase <br />6. Is Their Window To The World<br />11<br />
    13. 13. Indian households characterized by single TV sets but multiple mobile phones. <br />1/3rd have more than one phone<br />TV serves as a family device often controlled by the housewife’s preferences<br />Given the large young, male audience mobile sees greater consumption of<br />(S)exciting imagery and video <br />Cricket info / scores / updates <br />Playing games (82%)<br />7. Is A Personal Screen <br />12<br />
    14. 14. Smartphone adoption growing rapidly<br />Smartphone devices grew 120% in volumes<br />Sold an estimated 5 Mn devices <br />RBT is a reflection of self<br />RBT market in India is worth $ 500 Mn<br />Touchscreens / Social connect / Hi Res Camera / Apps are spoiling the consumer for choice<br />8. Is Their Projection To The World<br />13<br />
    15. 15. Services like voice chatting, follow celebs picking up rapidly<br />Airtel’s Talk 2 Me with Bipasha witnessed traffic of over 30000 consumers in just one circle over one hour. <br />Airtel’s Movie Talkies offering compressed 30 min audio clips (original time: 180 min) seen stupendous success<br />Voice chat offering an ‘Agony Aunt’ service sees heavy traction across operators<br />9. Works As A Filler Medium<br />14<br />
    16. 16. Bollywood forms a core connect to India through its culture of song n dance, dramatic story telling and larger than life stars<br />50 Mn strong Diaspora across the world <br />Hungama touches 3 Bn across 40 countries everyday<br />10. Provides A Connect To Their Roots <br />15<br />
    17. 17. A huge market with equally huge opportunities and challenges<br />Customization and innovation are key to lure the consumer<br />Price point innovation is extremely important particularly for low ARPU consumers<br />Localization of content - the mantra to reach out to the masses<br />Segmentation is a must, while Bollywood offers the largest base, devotional and regional content also thrive <br />Appeal to the youth imperative for success <br />Advent of 3G to drive Internet traffic and higher data consumption <br />Rise of smartphonesales <br />An increasingly mobile consumer seeking entertainment and social connect on the go<br />To Sum It All…<br />16<br />
    18. 18. Thank You<br />17<br />