The document discusses the significant growth of the digital content market, projected to reach $549 billion by 2019, driven by the increasing internet user base and smartphone proliferation. It highlights challenges in content ownership, monetization, piracy, and proper localization as key issues in the industry. Additionally, it emphasizes the importance of personalized content and emerging business models, such as subscription and ad-based approaches, for adapting to consumer demands.

1. 0Copyright © 2013 Comviva Technologies Limited. All rights reserved.
Re-imagining
Digital Content
Atul Madan
Senior VP, Digital Services, Mahindra Comviva
November 2015

2. 1
The digital content space is expected to touch
$549 billion by 2019, at a CAGR of 13.73 per cent
Source: Technavio
THE ERA OF CONTENT EXPLOSION!

3. 2
Digital Content Drivers
Digitization
 Over 3,035 million internet users globally
 Increased uptake of devices like tablets and the
internet
Smartphone Proliferation
 Globally, smartphone uptake is expected to touch
1,434 million by 2016
 This will enhance focus on and the demand of
digital content
Demand for Personalized Content
 Personalization of audio, video, applications, etc.
is on the rise
DID YOU
KNOW
 74 per cent of consumers get frustrated when irrelevant content appears
while accessing a service (source: Janrain)
 75 per cent of customers feel that the availability of dynamic and
personalized content across access channels is very important (Source: Adobe)

4. 3
An Upswing in Subscription Services
 Subscription-based services accounted for
39 per cent revenue share in 2014
 An over six-fold increase to $1.6 billion (2010-2014)
 Global number of paying subscribers increased by
46.4 per cent in 2014
 Currently stand at an estimated 41 million
( source: IFPI)
 IPTV services have gained traction. Global IPTV market
to grow at a CAGR of 20.32 per cent between 2014
and 2019. (Source: Technavio)
 By 2022, the global DTH subscriber base will touch
300 million. (Source: NSR)
 Spotify and Netflix
have gained traction
 Mainly owing to ease of use,
cost-effectiveness and legality
of service
 75 per cent of subscribers
select movies based on the
suggestions pushed by
recommendation
engines.(Gigaom Research)

5. 4
Key Questions Before the Content Industry
How does one foray into local markets across the
world in an economical manner?
1
2
3
How does one ensure rightful content
ownership?
How does one gets the right content
for an application at right time?

6. 5
Key Questions Before the Content Industry
How does one foray into local markets across the
world in an economical manner?
1
2
3
How does one ensure rightful content
ownership?
How does one gets the right content
for an application at right time?

7. 6
 Challenges pertaining to payments, cross-border remittances , currency
fluctuations
 Fragmented market and increased competition
Challenges for Content Partners
 Limited global customer reach
 Monetization of content
 Lack of clarity in finding, distributing, and measuring content.
Technology-based tools available but often unviable
 Content Piracy is still a major issue
 Contracting marketing spend margins; finding an effective
business model
Digital theft of music, movies and
copyrighted content accounts for a
substantial amount of Internet
bandwidth:
Globally
24%

8. 7
The Challenge of Artist Monetization
 Monetization of content is a long-
standing issue
 Existing manual payment systems are
cumbersome for both content
producers and users
 Thus, breaking into new markets
becomes difficult for artists, as they
will have to reach the 1 million
subscriber mark to break-even.
Effective monetization can be achieved
if the issue of localization is addressed
The cost of remitting to sub-Saharan Africa, typically
around 12%, is three percentage points higher than
the global average, according to the World Bank

9. 8
The Piracy Issue
In Nigeria, close to 90 billion naira ($60 million) has been spent
on purchasing imitation CDs, 81 billion naira ($54 million) has
been lost to piracy and counterfeiting
(2012 International Journal of cyber criminology)
Absence of
organized IPR
monitoring
mechanisms
Content distributors
thus lack the
means to audit
content and ensure
ownership
Piracy thus
becomes an issue ,
leading to loss of
revenue

10. 9
Challenges for Application Providers
The timelines required to
manage multiple content
providers require to be
streamlined
Issues pertaining to Intellectual
Property Rights continue,
unabated
Streamline the content
procurement cycle
Identify appropriate content for
their business
Reduce the documentation
required in the current
procurement process
Typically, an application provider
invests approximately six months
for procuring content. This delays
the market launch
56% of online applications
utilized are content-driven
Games:
Mobile
85%
Social Media:
Mobile
72%
Weather:
Mobile
70%
Retail:
Mobile
53%
News
45%
Sports
44%
Health:
Mobile
50%

11. 10
Challenges for Distribution Channels
Managing multiple content providers simultaneously
Content duplication
No content recommendation
Increased procurement cost
Access to local content ecosystem
Lack of IPR-protected content
Significant revenue share involved in external partnerships
Rising cost of exclusive content rights

12. 11
The African Content Story
SMS kick-started the mobile
revolution in Africa
Today, the mobile handset is
considered the “PC of Africa”
Entertainment and
information is the most
widely-accessed category on
the mobile handset
Kulahappy, AfriNolly and Music
are leading platforms/ product
categories
Pay TV
revenues in
Sub-Saharan
Africa will reach
$6.22 billion in
2020, up from
$3.54 billion
in 2014

13. 12
Content Drivers in Africa
Social Media
 Facebook is the most popular platform
 14 percent of customers in Tanzania and
27 percent in Ghana used this platform
(industry survey result)
Media Liberalization
 By 2016, the penetration levels of various
media in Nigeria would be: radio (90 per
cent), TV (65 per cent), computers (10 per
cent), mobiles (90 per cent), smartphones
(20 per cent), tablets (5 per cent) and the
internet (25 per cent)
Handset Proliferation
 All catgories of mobility devices are
catching on
 Widely-used mobiles in Sub-Saharan
Africa are smartphones, feature
phones and basic phones

14. 13
 In 2014, the music
industry’s global
revenues stood at
$8.85 billion
 Digital channels
accounted for the
same proportion as
that of the sale of
physical music
format-46 percent
The Main Channels of Content Distribution
 Portals
 Search Engines
 Social Network
channels
 Advertising
 Data hosting and
distribution
 Content delivery
from the aggregator
to the customer
 Popular services
include: RBT, Music-
On-Demand, Karaoke
and applications
 Audio, video, and
other media is
delivered over the
Internet without
involving a multiple-
system operator in the
control or distribution
of the content
 Of the 12.92 million
pay TV subscribers at
end-2014, 9.65
million were pay
satellite TV and 2.81
million pay DTT
 The pay total will
more than double to
27.95 million by
2020, with satellite
TV contributing 16.21
million and pay DTT
another 9.44 million.
 Nigeria is expected to
double its pay TV
revenues from $449
million in 2014 to
$1,148 million in
2020.
Media Telecom
Operators
OTT
Services
Physical Sale
of Music
DTH

15. 14
The Rise of the Digital Content Store
Consolidation of all
digital content at one
location
Converge the entire
ecosystem of content
providers and
customers on a single
platform
Leverage multiple
channels of content
distribution like Web,
APP, WAP, Text, IPTV, TV
and IVR for seamless
distribution
Such concepts are
gaining traction. For
example, Shutterstock
has net a subscriber
base of close to
2 million
(October 2015).
Source: Industry estimates
ADVANTAGES
For Developers: Low entry barriers; monetization potential
For Customers: Smooth user interface; ecosystem of store, device and operating systems
Automated partner management
Hassle-free royalty payments
Self-service option

16. 15
The Rise of the Digital Content Store
Consolidation of all
digital content at one
location
Converge the entire
ecosystem of content
providers and
customers on a single
platform
Leverage multiple
channels of content
distribution like Web,
APP, WAP, Text, IPTV, TV
and IVR for seamless
distribution
Such concepts are
gaining traction. For
example, Shutterstock
has net a subscriber
base of close to
2 million
(October 2015).
Source: Industry estimates
ADVANTAGES
For Developers: Low entry barriers; monetization potential
For Customers: Smooth user interface; ecosystem of store, device and operating systems
Automated partner management
Hassle-free royalty payments
Self-service option
Optional Slide

17. 16
A Likely Future Roadmap for Digital Content
Personalized &
recommended
content and
delivery is
the key
Focus on new business
models such as ad based
model, subscription ,
premium pricing, pay per
use model, differential
pricing, bundle
offering
Advanced
metadata and
content-aware
applications to
play a significant
role

18. 17
Disclaimer
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