2 min read.Updated: 14 Nov 2019, 02:45 PM ISTLata Jha
The 35-44 age group in the country now consumes 0.8 times as much video as the 15-24 age group
Both tier-one and tier-two towns consume 0.8 times the amount of digital video that metros do currently
NEW DELHI :
India’s digital video consumption is no longer driven only by its young or urban population, the gap in the metric of the two age groups – 15-24 and 35-44 – having considerably narrowed. The 35-44 age group in the country now consumes 0.8 times as much video as the 15-24 age group, according to the latest media and entertainment report by the Boston Consulting Group (BCG) along with the Confederation of Indian Industry (CII).
Titled ‘The Trillion (and growing) Touchpoint Story’, the report was released at the CII Big Picture Summit 2019 in New Delhi on Thursday. Further, both tier-one and tier-two towns consume 0.8 times the amount of digital video that metros do currently, while women watch 0.7 times as much content as men, it said.
“Digital video that was earlier seen as a metro, male and millennial phenomenon, has now seen pervasive growth across India thanks to wide adoption by demographies," said Mandeep Kohli, partner, at the Boston Consulting Group. At the same event, RS Sharma, chairman of the Telecom Regulatory Authority of India (Trai) pointed out that the data usage per month per user ranges around 5 GB in urban India versus 13 GB in rural India.
India’s per capita media consumption continues to grow with all forms of media rising simultaneously, maintaining the unique multi-modal growth format. While traditional media is growing at a steady pace (1%, 4% and 8% for print, radio and TV respectively over a two-year period), digital media is driving overall growth at a 16% CAGR. The addition of the mobile as a “small screen" has pushed India to more than a trillion unique interactions, the report said.
Digital video consumption has increased from 11 minutes per day to 24 minutes per day over the past two years. Over 2018, this has meant a 10-15% rise in the number of (digital video) sessions per user per day and a 15-25% increase in the average time per session. Internet penetration, along with growing affluence and smartphone penetration that are already responsible for this leap, are expected to rise in the future, further driving this growth.
“Of course there is always room for scaling up in the media and entertainment industry but we have to take note of the fact that there has been continuous churn in the number of consumers and the supply of content too has been robust," said Sudhanshu Vats, chairman, CII National Committee on media and entertainment and Group CEO and managing director, Viacom18 Media Pvt Ltd.
The BCG report says that there is an estimated investment of Rs2,000 crore in original content across the top four OTT platforms in India. Further, the Indian subscription-based video-on-demand (SVoD) market is valued at $0.5 billion in 2019 as compared to $0.1 billion in 2018.
BCG surveyed smartphone users and found out that 64% of them were aware of at least two SVoD apps other than YouTube and 40% had accessed at least one SVoD app (other than Youtube) in the past six months.
There are two key strategies to turn the trillion (and growing) touchpoints into a more sustainable and value accretive proposition for all the industry stakeholders, according to the report. One is to continue driving targeted investments around propositions including relevant content and affordable pricing. Second is to work closely with advertisers to further strengthen the relationship - increasing the spend and return on their investment.
“In the decade to come, we should be able to see global (media and entertainment) brands emerge out of India," Shashi Shekhar Vempatti, chief executive officer, Prasar Bharti, said.