BUSINESS OF ENTERTAINMENT
A CUP - Quarter Full - Three Quarters Empty
Ronnie Screwvala
It's been nearly two decades since we gave up the privilege of being "Entertained" by a single terrestrial channel - "Doordarshan" - and Satellite Invasion changed our habits forever. It's been a decade since the mobile phone - changed how India "Talks & Walks". Its been close to a decade since the world woke up to the fact that India is the "Youngest" country in the world where close to half of the population is below the age of 25. And its been half a decade since that Young India - has redefined and forced change - not only in the way we consume Entertainment / Information & Media - but also what that content should be.
India is the largest Entertainment Consuming country in the world - so one would think we have a significant share of the Media & Entertainment pie globally - but not so! We barely make "1%" of the worldwide revenues. So that's the cup less than a quarter full.
Let me focus on how and what it will take to fill the other three Quarters.
- Technology: is the Game changer - as everything in Entertainment & Media will be consumed on multiple screens & devices & not just the conventional TV screen or Movie Theatre - But we do have many blinkered approaches that have not allowed this to explode, like it has in most of Asia. Our Telco companies - too busy with adding lower Tariff prepaid customers - have jut not "Got" the opportunity - and I hope 3G will be their wake up call. Secondly is the total lack of Net and Broadband connectivity, which is a shame considering we are one of the most fiber optic cabled countries in the world - waiting with baited breadth for the last mile to open up. Therefore - just making the mobile screen a consumption platform for Information & Entertainment (and we have not even touched the tip of the iceberg) AND - giving high speed connectivity to the Top 50 million Households that represent almost all of the upper middle class - will add that "another' 1% to the one percent that India presently has of the Media & Entertainment Share worldwide.
- Our Cable TV sector needs a Revolution. Cable TV goes to 80 million households which is roughly 400 million people (the single largest in the world) and it's a tribute to the true Indian Entrepreneur that Cable operations have been able to build this into a business - in spite of no regulation & very limited investment into this core sector that controls the last mile into the homes of one of the largest emerging consumer markets in the world. Lack of Political Will, and lack of comprehension in most parts of the State, Centre & Regulatory Bodies of the enormity of the opportunity here - coupled with various conflicted Media interest & lobbies has kept this "Gatekeeper" to growth in Media & Entertainment suppressed for too long. Billions in Investments has to pour into this archaic Cable systems and the future of Telecom, Triple Play, Broadcasting, Sports & overall Entertainment & Content monetization depends on a shake up of this that will unlock another 1% to India's Share of the worldwide Media & Entertainment business.
- Lets focus on Young India:- For starters lets not club them into one age group - as they are not (1) The 14-21 year old - Tech Savvy, hungry for Info & Interactive Entertainment and major influencer in shopping & consumption habits at home (2) The 22-27 year old - single or recently married - voracious appetite for new products, services & experiences (3) The 28-35 year old - very distinct preferences and very demanding in innovation, quality & services and has the money for it. So if we focus on this segment - as they will spend 20% of their disposable income on leisure & entertainment (the average Indian spends less than 9%) - and so they will add yet another of that 1% additional to India's Global Media and Entertainment Share.
- India is a CONTINENT - not just a Country. Wherever we look at the Media & Entertainment segment it's always viewed primarily as the Hindi Belt but the Regional markets offer the highest growth and scalable opportunities. Consider this the 5 biggest communities of Urban India are Gujarati, Awadhi (UP), Telegu, Kannada, & Marathi who combined add up to 58%. Their Information & Entertainment needs and the way they consume it are different in many ways. Not enough focus nor enough Content offerings in Media & Entertainment have been for targeted regions & there is a huge opportunity. We all know that focused content always enlarges markets & segments & while we do have over a third of our over 400 channels in Regional languages and while 70% of all Movies made every year are in regional languages somehow most in Media & Entertainment have not given this the attention it deserves. A focused and expanded offering for region wise India "The Continent" would contribute that 1% more for India's global share.
In conclusion, I have shared my personal view on some, not all, of the triggers that can make Entertainment & Media create India's next Globalization. Of course our content Innovation and offering would also need to change and evolve as we harness - Technology / Young India / & Regions. I also believe our Media & Entertainment prolification can be India's best Brand Ambassador, worldwide and more than Tourism.
Finally, since China seems to be hurtling forward to be the next "Super" Power - & since the United States has been the Soft Power of the last century - India can & must be the 'Soft' Power of this century. We all have some work to do.
