The Future of Entertainment & Media in a Hyperconnected World, India and Pakistan

By: Zahid Hussain Khalid SUN&FZ Associates

Developed and Emerging Entertainment and Media Markets

Source: PwC Outlook 2011 - 2015

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.

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”

Global Entertainment & Media Revenue Streams of the Future

EIU/IBM global survey: Significant revenue streams of the future.

Percentage of 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.

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

“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 organization of 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”

2020: 50 billion connecting devices

Future is here

Source: Telefonica’s Strategy – Pay TV and Content, Brussels, 25 October 2012

TV sets are already the best-selling Internet-enabled TV device

Global, connected-TV and games-console sales, 2011-2016

Source: Informa Telecoms & Media

The Great TV Connectivity Gap or Marketing Opportunity

Global, connected-TV installed base, 2011-2016

Source: Informa Telecoms & Media

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

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

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 billion apps downloaded in 2012 **23 billion apps downloaded in 2011 ***280 billion videos watched on mobile devices in 2011 ****108 billion videos watched on mobile devices *****1.7 billion mobile handsets shipments in 2011

Source: Industry Data (Gartner, IDC, Informa Telecoms, Interactive Advertising Bureau, IPTS, Juniper Research, NPD, Strategy Analytics, PwC)

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

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

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

The Media Challenge

Source: Dynamics of Media and Content Industries, Michael Gubbins, MCG Film and Media, Film Agency for Wales

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”

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 profitability that goes away when people watch television differently than 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.

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 interaction for social, economic and political change both at national and global levels

SOURCE: Monetizing the multiplatform content portfolio, PwC

Upgraded TV Features, Its Value to Consumers and the Possibility of a Protracted Price War

“If upgraded TV features don’t prove new value to consumers, competition will devolve to price alone, placing pressure across the value chain.”

EIU/IBM global survey: Triple play pricing strategies

Percentage of respondents

Source: IBM Institute for Business Value survey conducted by the Economist Intelligence Unit.

“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.

A Hyperconnected World

“The Internet and social media now seem to connect each person to everyone else, and to make information available to all.” How and where does the

television fit in?

Source: WEF’s Global Agenda Council on Complex Systems – “Perspectives on a Hyperconnected World - Insights from the science of Complexity”

Two Basic Challenges for TV Networks in a Hyperconnected World

Maintaining their respective positions in the national and global television marketplace

and re-legitimizing what has been its main source of creativity, i. e.

Public Service Broadcasting

Two Key Market Drivers

Openness of access channels and levels of “meaningful consumer involvement” with media

Bottom Line: Creation of High Quality Knowledgeable Consumer Listening Platforms (CLPs) An example: The Federal Reserve Bank wants to develop a CLP based on social media analytics what people are saying and commenting about the economy

Source: IBM Business Consulting Services – “The End of Television as We Know it”

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-forward consumer segment leads to a world of platform-agnostic content, fluid mobility of media

experiences, individualized pricing schemes and an end to the traditional concept of release windows.”

Source: IBM Business Consulting Services – “The End of Television as We Know it”

The Challenge: How to wake up this man?

Does he need an “Irresistible Content Pull Shock?”

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 Focus on Shakespeare’s Seven Stages of Life

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’s Seven Stages of Life from As You Like It…

Source: “Fixing The Fix Point Charts Of TV Channels: http://www.slideshare.net/19540201/fixing-the-fix-point-charts-of-tv-channels

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 happening and a LOT MORE needs to happen.

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 television were characterized by creation of carriage infrastructure with 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 10 th 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

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 10 th five year plan 2002-2007, Government of India Planning Commission, October 2001

Coverage

Broadcast Coverage is poor on account of quality signal

Poverty

Inability on account of poverty to own or access TV and radio sets

Electricity

Lack of Electric Power

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 specifically meant 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 viewership rating 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 10 th five year plan 2002-2007, Government of India Planning Commission, October 2001

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 11 th 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 carriers Institutional Arrangements

• Defined the role of government vis-à-vis the private sector The Role of Government

• Suggested policy measures for promoting access to media platforms for civil society in public and private sectors Policy Recommendations

Clarity of objective, a sense of mission

Resources Empowering structure and

process

Independence / Autonomy

Support of civil society

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.

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 brilliant team.

A True Media Entrepreneur’s Vision Goes Beyond Barriers and Boundaries

National Cultural Contexts of Global Contents

Local identities and cultures have necessitated the territorial, organizational and creative decentralization of global media conglomerates and 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

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-exposure of unworthy Politicians, retired bureaucrats / Social Sector (Special Children) Generals & over-influenced / biased & westernized intellectuals (Community Affairs) Cheap comedy / Misplaced Comedy Shows (Inspirational Themes) Sub-standard research 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-standard comedy Irritating Commercial breaks and In-house Promos Soaps based on an endless series of conspiracies

Additional Source: “The State of Electronic Media in Pakistan” http://www.slideshare.net/19540201/the-state-of-electronic-media-in-pakistan-13018655

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!

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-India TV shows after intelligence alert*

Is it reporting error? Or is it a sit-com?

Someone has to define on-screen and off-screen diplomacy

*Source: http://www.dailymail.co.uk/indiahome/indianews/article-2243584/Government-puts-24-foreign-hate-channels-notice-showing-anti-India-TV-shows-intelligence-alert.html

…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 military operation other than war in and around Pakistan giving rise to suspicion and credibility question mark.

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: http://www.defence.pk/forums/social-issues-current-events/70682-indian-tv-channels-banned-pakistan.html

http://www.slideshare.net/19540201/the-state-of-electronic-media-in-pakistan-13018655