Creating a TV Anywhere

7/31/2019 Creating a TV Anywhere

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Creating a TV-

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2012


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Business Overview

The demand for smartphones, handheld multimedia devices and tablets is at an all time

high, with Google and Apple battling for market share by launching newer versions of

software and hardware, Samsung riding high on the Android wave, and former leaders like

Nokia finding it hard to get a chunk of the pie. Globally, 36% online consumers of a Nielsen

survey report owning a smartphone, and 12% a tablet (vis--vis 21% and 7% respectively in

2010). Asia Pacific region witnesses increased penetration, with potential ownership of

smartphones estimated at 70%, and tablets at 45% within the next year.

Growing popularity of high-speed internet connection and multimedia devices indicates

increased penetration of audio-visual content across platforms. A comScore study lists

Singapore as the market with the highest non-computer internet traffic (11.5%), while India

also owes a substantial 5.1% of its internet traffic to noncomputer platforms. Video

content consumption witness increase on internet enabled platforms (Computers, Mobile

Phones, Tablets etc.), while content consumption on Television declines. Speaking of

content, consumption of on-demand content is growing rapidly, with more than 50%

respondents of Ericsson ConsumerLabs study using internet based on demand content

every week.

While the audiences still spend majority of their time in front of the television sets, more

and more people are watching video content on the internet and on the move. An

Australian multi-screen report finds time spent watching video content on mobile to have

grown by more than 100% in a year, albeit on a small base. Also, the consumers of video

content on platforms other than TV and computer are young, with 72% of the mobile video

audience below 35 years of age. With high-speed internet gaining penetration and

introduction of 3G and 4G technologies on mobile networks, the consumption of content on

platforms other than the traditional television set is bound to rise in the days to come.


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Industry Scenario Global / Indian

Global giants like BSkyB, AT&T, Vodafone, Comcast and BBC have already ventured

successfully into multi screen platforms, offering wide range of content to subscribers at

their convenience, enabling them to watch the content of their choice, at a time and place

suited to their convenience.

With the introduction of 3G services form all the telecom service providers, and some

players having launched 4G services in selected circles, the Mobile Internet penetration in

India has witnessed major growth in the last 2 3 years. A report published on the website

Medianama.com reports the number of 3G subscribers in India at 39 million (Q4 2011), with

4% penetration rate and 841% year on year growth building strong case for Mobile Internet

in the days to come. The website also reports Mobile Internet usage to have surpassed

Desktop Internet usage during April May 2012.

According to a study by IMRB and IMAI, the total number of mobile internet users in India is

4.8 crore. The latest mobile internet behaviour and usage study by ViziSense reports 40%

(two crore) of the total mobile internet users have shifted 50 percent of their newspaper

and television time to their mobile screens, the choice of content spanning genres like

entertainment, news, travel and sports. The study further states that of all Mobile Internet

users in India, 87% are found online on mobile every day, with almost half of these usersgoing online through their mobile devices every two three hours, and staying online for

more than hour. The behaviour, as per the report, is largely triggered by the access to fast

mobile internet and a personal screen, which allows users to consume content without

having to share the medium and even choosing the content at leisure (as against television

or even newspapers). Also, 70% of the daily Mobile Internet users fall into the age group 20

34 years.

Video content consumption on Mobile phones has increased manifold because of the

aforesaid reasons. YouTube reported traffic from mobile devices in 2011 to have tripledover the last year. YouTube is available on 350 million+ mobile devices. According to popular

technology website Mashable.com, mobile devices account for more than 200 million

YouTube views per day. More than 20% of global YouTube views come from mobile devices.

A TRAI report pegs the number of private TV channels in India at 825, out of which 163 are

pay channels. Majority of the popular channels are owned by leading networks - Star TV

India Ltd., Zee Entertainment Enterprises Ltd., Multi Screen Media Private Ltd., Viacom 18

Media Private Ltd., and Sun TV Network to name a few. Of late, these media houses have

also realized the potential of mobile internet and have accordingly launched content

optimized for mobile platforms. News networks like BCCL, Network 18 and NDTV have


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launched mobile websites and applications to make their content easily available on the

move. Star TV has already launched some of its Hindi and Regional GECs on mobile TV.Further, they have introduced Star Player, their online video streaming portal. Zee Network

has launched Ditto TV platform to make its content available online to subscribers on the

go. Networks like UTV, while refraining from launching a platform of their own are readily

providing content to other aggregators for broadcast on mobile platforms. There are many

third party applications like Apalya and NexGTV available on Android and iOS platforms

which facilitate streaming of TV channels on mobile and tablet devices.

In India, the leading telecom service provider Bharti airtel, and the government owned

BSNL already offer mobile TV to their customers, while Reliance and Tata Sky are planning to

launch multi screen platforms for content. For all these companies, the idea to own a

multi screen platform is appealing as such an offering can facilitate cross selling of

services to the customer base, and attract high ARPU customers.

An Indian Telecommunications Companys perspective

The major requirements for establishing a multi screen platform can be summarized as:

ownership of the required technology, appealing content and a capable network tobroadcast it. Hence, multi screen platforms make business sense for a large

telecommunications company. In developing a multi screen platform, the company needs

to keep in mind that while a traditional TV set is more of a family device, factors like high

penetration of smartphones and other multimedia devices, people spending more time out

of home and on the go in Tier 1 and Tier 2 cities, and a nation wide passion for Cricket and

Movies could be the drivers to consumption of content on screens other than television. A

company could enjoy the advantage of already owning the rights to broadcast

miscellaneous content on its platform, and multi - screen services can facilitate cross

selling of services, aim at minimizing customer churn and maximizing ARPU at minimalincremental costs. Also, such an offering has the potential to pull new customers.

Business Case

One of the largest Indian MNCs, leaders in diverse businesses Telecom, Broadband, DTH

Services, and Enterprise Services to name a few claiming itself to be Indias largest music

company based on revenue, and enjoying a customer base of over 200 million satisfied

customers, wishes to offer its customers an exciting proposition: audio visual content on amulti screen platform. With the increasing popularity of smartphones, handheld


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multimedia devices and tablet devices both worldwide and in India, and already having

strong capabilities in terms of owning the required technology, content and network, thecompany senses business opportunity in offering its customers content of their choice on a

screen of their liking.

You are required to prepare a detailed business case, with focus on, but not limited to, the

following key areas:

Unique Product Proposition to be offered by such platform A seamless user experience across platforms Understanding from the consumer perspective the type and genre of content likely

to be consumed in each screen in different consumer segments

The kind of product and pricing construct that would appeal to each segment The go to market strategy for each segment How would the existing base of 200 million customers be harnessed

In developing your business idea, you might also want to develop a detailed understanding

of the various Target Audiences that would be interested in such an offering. You can

consider any sources of revenue such as advertising, transactional and/or subscription. Anunderstanding of the entire value chain from content creation to broadcasting the content

on various devices might help making your business case more robust.

In developing your business case, feel free to make other assumptions but you should be

able to defend them based on data or intuition.

Creating a TV Anywhere

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