Future of Television

in India
Key trends

The

trends

that will drive the future

The Indian television industry is undergoing a

seismic shift. The pace of technological change
is accelerating so quickly that finding the right
balance between addressing todays daily
operational challenges and planning for the next
big thing can be a struggle. Many executives are
so focussed on the critical issues that they need
to address today that looking forward is nearly
impossible. And yet, looking forward is what
executives need to do if they want to innovate,
prosper and survive.

1
2
3
4
5

Unbundling of content will

drive new revenue models

Technology will enable

omniplatform consumption

On-tap content will lead to

time-shifted bingeing

Increased materialism will move

TV consumption from the living
room to the bedroom

Increased broadband will result

in increased piracy

6
7
8
9
10

Increased content cost will shift

power to the content producer

Digitization will increase

importance of niche channels

Transparency will lead to perviewer carriage models

Unicasting will lead to resultbased ad models

Social dynamics will lead to

more real-time feedback

Here are ten emerging trends that

we see as having the biggest impact
on the future of television in India

Trend

1
2
3
4
5

Unbundling of content will

drive new revenue models

Technology will enable

omniplatform consumption

On-tap content will lead to

time-shifted bingeing

Increased materialism will move

TV consumption from the living
room to the bedroom

Increased broadband will result

in increased piracy

Implications

As seen in both music and books, with the

advent of good-quality broadband and
increasing per-capita income, TV content
will get unbundled. There will be a shift
from channel loyalty and TV loyalty to
program loyalty and device disloyalty

1. Need for sachet pricing models Pricing by episode, series, day, etc will
be required

Consumption will move from one

location to many, as viewers desire
to be entertained across locations
will become possible with the aid
of technology like wifi. They will
consume content across various
formats and devices.

1. Content will need to move seamlessly

across devices and locales; storytelling will need to evolve
2. Measurement of viewership will be
individualized, and be based on large
volumes of actual data
3. Increased adoption of digital supply
chain to reduce cost and time

2. Loss of traditional subscription

revenues
3. Threat that high individual pricing
could be hampered by piracy

As there is no need for immediacy

of viewing (except in sports and
breaking news), viewers will access
most content at their ease, and
indulge in bingeing (consuming
many episodes at once).

1. Digital asset management would

need to be strengthened to
enable subscription revenues

Increased materialism and lower TV,

broadband and PC costs will enable
families to split their viewing patterns
from the common or living room, to
the individual or bedroom

1. Lower share for GECs and increased

importance of niche channels

Broadband growth = Piracy

growth. Specially when
broadband rates reduce and
come on par with cable rates.

1. Need for industry-level

initiatives to curb piracy

2. New pricing and packaging

models would emerge
3. Growth of Multi Channel Networks

2. Ability for advertisers to target

audiences one-on-one

2. Flexible & fair content pricing models

Trend

6
7
8
9
10

Increased content cost will shift

power to the content producer

Digitization will increase

importance of niche channels

Transparency will lead to perviewer carriage models

Unicasting will lead to resultbased ad models

Social dynamics will lead to

more real-time feedback

Implications

IP will begin to be co-owned by

production houses, and not just
broadcasters, as increasing content
costs will result in increased risk
sharing

1. New models of content licensing

India will digitize its distribution

across Phases I to III, and increased
collections from subscribers will
trickle to broadcasters. Phase
IV will remain a fragmented or
HITS play, with LCOs retaining
their last-mile relationships.

1. Increased revenues for niche channels

2. Need for robust content use

monitoring systems
3. Premium artists start to share the risk

2. Fragmentation of the GEC into subGECs with focused target audiences

3. Possibility of massive viewership
measurement at the household level
4. Marketing will need to support
Phase III viewership

Carriage is a distribution cost and will

be recognized as such, till such time
as MSOs begin to collect a larger
share of subscription revenues

1. Per-viewer carriage models will

come into being; split across 50
large and medium distributors

Ad service will change to unicast

models, targeting individual
viewers, like the internet

1. Advertisers will begin to pay per ad

served and viewed, and increased
measurement will be the norm
2. Value of a served customer vs. a
mass customer will be determined
3. Use of return path (where
possible) to drive interactivity

1. Need to implement social media

Apart from viewership measurement,
crawlers and big data analytics
trends from social media like Facebook,
Twitter, etc. will provide inputs to
2. Content supply chain
needs to be flexible
marketing, pricing and story-telling

The future of TV will have implications for every component of

a media company
We believe tomorrows TV broadcaster will transform into omniplatform
content company.
We expect the business to look like:

Strategy and monetization

Front office

Middle office

Back office

Customer experience

Support operations

Supply chain and distribution

management

optimization: Marketing, sales,

service

Customer and channel

segmentation

Enterprise cost reduction

Digital IP: products and

Operating model and

Pricing and bundling

Content monetization

Sales, service and marketing

Digital/media asset

Social media strategy

Technology enablement:

services

governance

transformation

Technology enablement:

lead to service, web, contact

centers, customer resource
management (CRM)

management

Finance transformation
Enterprise resource planning

(ERP)

Shared services optimization

Intellectual property

management: rights, royalties,

participations

IT Services Management:

non-core IT, next-gen sales,

operations and engineering

disaster recovery, business

continuity, digital content
security, cloud

Business intelligence and advanced analytics

Organizational design, change management and governance
Technology selection and program management
Privacy, security and risk management

Whats next?
A new reality
M&E companies need to do more than react to todays
trends they need to be able to see emerging trends
that will dictate the future of television and how it will
impact established business models.
The B2C front-end
At a foundation level, the trends we have described
will require M&E companies and content providers to
develop much richer relationships with viewers. To
cultivate these relationships, affected M&E players will
need to invest in the technologies that will enable them
to analyse audience data, deliver deeper engagement
with advertising and prove incremental value to
brands.
The digital backend
Most importantly, they will need to offer deeper
engagement with the content experience itself in
such a way that viewers will choose to directly pay for
content streaming services or ownership. They will also
need to plan and execute strategies that adapt their
supply chains, customer experiences, and analytics
platforms to address these trends.
The mantra for success
Ultimately, we see the future of television as a carefully
crafted omniscreen experience that combines great
content with equally compelling social and gamification
techniques tailored to individual viewers stated and
implicit preferences. This, we believe, is the key to
winning the future of television in a world where
consumers are in control.

M&E companies preparing today for the television

experience of the future should ask the following
questions:
Which trends dictating the future of television will have
the greatest impact on my company?
Do I have the systems, processes, and organisational
structure to meet these trends head on? Have I thought
through the supply chain, customer experience, and
data needs?
How will they disrupt the well-established business
models?
What will I need to adapt my strategies to prepare for
a media consumption future that doesnt look anything
like the models of the past
How do I reimagine a viewing experience where the
television complements the tablet experience, and not
vice-versa?
What tools or technologies do I need to measure
engagement in an omniplatform, multiscreen
environment?
What will it take to drive relationships with content
franchises and deliver value to advertisers that are
DVR-proof?
How do I measure bingeing? How do I monetise it?
How do I use it to boost the value I can deliver to
advertisers?
What is my risk tolerance when it comes to creative
innovation?

Ernst & Young LLP

EY | Assurance | Tax | Transactions | Advisory
About EY
EY is a global leader in assurance, tax, transaction and
advisory services. The insights and quality services we
deliver help build trust and confidence in the capital
markets and in economies the world over. We develop
outstanding leaders who team to deliver on our
promises to all of our stakeholders. In so doing, we play
a critical role in building a better working world for our
people, for our clients and for our communities.
EY refers to the global organization, and may refer to
one or more, of the member firms of Ernst & Young
Global Limited, each of which is a separate legal entity.
Ernst & Young Global Limited, a UK company limited
by guarantee, does not provide services to clients. For
more information about our organization, please visit
ey.com.
Ernst & Young LLP is one of the Indian client serving member firms
of EYGM Limited. For more information about our organization,
please visit www.ey.com/in.
Ernst & Young LLP is a Limited Liability Partnership, registered under the
Limited Liability Partnership Act, 2008 in India, having its registered office
at 22 Camac Street, 3rd Floor, Block C, Kolkata - 700016
2014 Ernst & Young LLP. Published in India.
All Rights Reserved.
EYIN1407-085
ED None
This publication contains information in summary form and is therefore
intended for general guidance only. It is not intended to be a substitute
for detailed research or the exercise of professional judgment. Neither
Ernst & Young LLP nor any other member of the global Ernst & Young
organization can accept any responsibility for loss occasioned to any
person acting or refraining from action as a result of any material in this
publication. On any specific matter, reference should be made to the
appropriate advisor.
MS

EY refers to the global organization, and/or

one or more of the independent member firms
of Ernst & Young Global Limited

How EY's Media & Entertainment Practice can

help your business
EY India has a dedicated M&E practice of more than
250 professionals across 15 key segments of the
media industry. We provide services to 7 of the top
10 M&E companies in each segment of the media
industry - across people, processes, IT, assurance,
tax and M&A.
For further details, contact: Radhika Pradhan on
radhika.pradhan@in.ey.com or 91 22 6192 1516