- Enough demand to propel the media industry to show double-digit growth
- Effective use of 3G technology to be the litmus test for content developers
India’s media spends are abysmally low (USD 4 per capita) compared to neighbour, China (USD 27 per capita). There is enough demand in the Indian economy and populace to propel the media industry to show a double-digit growth per annum and slowly bridge this yawning gap.
India’s current outsourcing share of the global market for animation and gaming industry is less that 10 percent as compared to the corresponding share in the IT and BPO Industry which stands at 51 percent. A study on India’s Animation, Broadcasting and Gaming industry by Deloitte hopes that the industry, which derives majority of its revenues from outsourcing today, will grab greater share of this increasing outsourcing pie. Moreover, as the economy moves out of tough times, animation houses in India would take the initiative to develop the in-pipeline high budget, high quality movies and animation content
Also the currently low domestic share (0.6%) of the worldwide animation and gaming market points to Indian industry’s potential for growth of local content. The demand for original Indian content has been increasing over the years. Pogo, a leading channel for kids has increased its original Indian content from 50 hours in 2004 to more than 200 hours in 2009. Other channels are expected to follow the same trend.
“Players are expected to leverage the incoming 3G technology and develop end-to-end mobile gaming Intellectual Properties (IPs). Promoting gaming / animation as a career in India and working with the Government for higher dissemination of related professional education is the key,” said Sandip Biswas, Director, Deloitte Touche Tohmatsu India Private Limited. “Increasing co-production deals and development of own IPs are indicators of the demonstrated capability and growing confidence of the Indian Animation and Gaming Industry”.
For the broadcasting industry digitization will be the most rapidly growing trend. Content creators and broadcasters need to be cognizant of the ever increasing demand for differentiated content. “Players who invest in understanding the consumer and target pre-determined segments with innovative content are slated to emerge winners, leaving the others behind,” said Sandip Biswas.
While on one hand, new digital content distribution platforms are emerging; on the other hand, new formats of entertainment - computers, mobiles and other handheld devices are gaining importance. “Players need to understand the implications and adapt themselves to this growing phenomenon. It will be really interesting to see if the industry witnesses any consolidation in the coming 12-18 months. Another key thing that we are awaiting is the reaction of the content providers in the industry to the oncoming 3G Wave,” Sandip Biswas added.
The future of radio in this country is primarily dependent upon change in the regulations and the mode of the much-awaited Phase 3 Licensing. The real potential of the medium which lies in its local reach and interactivity can never be realized unless radio broadcasting players find it commercially feasible to operate in small towns and cities, with the freedom to broadcast multiple genres.
More From This Section