Trends & Analysis - Past, Present & Future of the Indian Digital Content Industry 2016

1. Indian Digital Content Industry
2016
Trends & Analysis - Past, Present & Future
Chaitanya Chinchlikar
Vice President – Whistling Woods International
Vice President – Mukta Arts Ltd
chaitanya.c@whistlingwoods.net

2. The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again.
Source: FICCI-KPMG Report 2016
652
728
821
918
1026
1156
1314
1503
1723
1980
2261
0
400
800
1200
1600
2000
2400
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
INRBillions
Indian M&E Industry
The Indian M&E Industry - High-volume, low-value.
The Indian Media & Entertainment Industry includes
Film, Television, Print, Radio, Music, Digital Media, Animation & VFX, Gaming,
Events & Live Media, Out-of-home, Sports, Entertainment Parks & other media.
• Valued at over US$
17.4bn (1,15,600Cr INR)
which is ~0.97% of the
global M&E industry
(estimated at US$ 1.8tn)
• Expected growth (14.3%)
over the next 5 years is to
be higher than the global
M&E industry (at 5.1%)
• Dawn of Digital – 38.2% in
2015, 33.5% in 2016-2020.
12.8%
14.3%

3. The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again.
Source: FICCI-KPMG Report 2016
Indian M&E Industry – SOTP
0
500
1000
1500
2000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
297 329 370 417
475
542
617
710
823
957
1098
193
209
224
243
263
283
305
330
356
384
413
83
93
113
125
126
138
159
174
190
208
227
10
11
13
15
17
20
23
28
33
38
43
9
9
11
10
10
11
12
14
16
18
21
16
18
18
19
22
24
28
32
35
40
45
24
31
35
40
45
51
58
67
78
91
108
10
13
15
19
24
27
31
34
39
45
51
10
15
22
30
44
60
81
114
153
199
255
INRBillions
TV Print Film Radio Music OOH Animation & VFX Gaming Digital
All sections are growing. Some are growing faster than others

4. The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again.
Source: FICCI-KPMG Report 2016
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
46% 45% 45% 45% 46% 47% 47% 47% 48% 48% 49%
30% 29% 27% 26% 26% 24% 23% 22% 21% 19% 18%
13%
13% 14% 14% 12% 12%
12%
12% 11% 11%
10%
2%
2% 2% 2%
2%
2%
2%
2%
2%
2%
2%
1%
1% 1% 1%
1%
1%
1%
1%
1%
1%
1%
2%
2% 2%
2%
2%
2%
2%
2%
2%
2%
2%
4%
4% 4%
4%
4%
4%
4%
4%
5%
5%
5%
2% 2% 2% 2%
2%
2%
2%
2%
2%
2%
2%
2% 2% 3% 3% 4% 5% 6% 8% 9% 10% 11%
TV Print Motion Picture Radio Music OOH Animation & VFX Gaming Digital
Indian M&E Industry – Market-share

5. The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again.
Source: FICCI-KPMG Report 2016
Digital – Growth galore!
10
15
22
30
44
60
81
114
153
199
255
0
50
100
150
200
250
300
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
INRBillions
Digital is expected to quadruple its size in the next 5 yrs

6. The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again.
Source: FICCI-KPMG Report 2016
Telecom Base – Volume galore!
Tele-Density: 81.83
Urban: 148.73, Rural: 50.88
What’s coming?
LTE!
As of March 2016
Telecom Service
Providers
Subscribers
Bhar0 Airtel 25,12,37,263
Vodafone 19,79,46,755
IDEA 17,50,74,042
Reliance 10,24,08,072
Aircel 8,70,86,612
BSNL 8,63,45,709
Tata 6,00,97,988
Telenor 5,24,54,949
Sistema 76,91,379
Videocon 65,63,762
MTNL 35,60,856
Quadrant 31,63,438
TOTAL 1,03,36,30,825

7. The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again.
Source: FICCI-KPMG Report 2016
Digital – global comparison!
• India has the
lowest net
penetration
among all
developing
countries and
much lower than
the developed
ones.
• Despite that, India
has more internet
users than the
US.
19%
53%
46%
60%
87%
90%
86%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
India Brazil China Russia USA UK Japan
Internet Penetration
Avg Broadband speed % of connections > 4MBPS
2014 2015 2014 2015
South Korea 25.3 20.5 96% 96%
Hong Kong 16.3 15.8 89% 92%
Japan 15.0 15.0 87% 90%
Singapore 12.2 12.5 83% 87%
Taiwan 9.5 10.1 78% 88%
New Zealand 7.0 8.7 77% 87%
Thailand 6.6 8.2 85% 93%
Australia 6.9 7.8 66% 72%
Malaysia 4.1 4.9 39% 53%
China 3.8 3.7 34% 33%
Indonesia 3.7 3.0 35% 17%
Vietnam 2.5 3.4 14% 31%
Philippines 2.5 2.8 9% 10%
India 2.0 2.5 7% 14%

8. The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again.
Source: FICCI-KPMG Report 2016
The Digital Business – A BLITZ of growth!
51.1 64.9
85.2
107.3
129.5
153.1
9
16.2
28.4
46
69.8
102.1
0.0
50.0
100.0
150.0
200.0
250.0
300.0
2015 2016 2017 2018 2019 2020
INRBillions
Size of the Digital Business
Web Mobile
0
100
200
300
400
500
600
700
800
900
1000
2014 2015 2016 2017 2018 2019
825 857 886 913 938 960
281
348
420
494
570
640
MillionsofUsers
TV Internet
18%
0
50
100
150
200
250
300
350
400
450
500
2015 2016 2017 2018 2019 2020
173
232
286
342
399
457
116
188
249
299
369
435
MillionsofUsers
Net on Mobile Smartphones

9. The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again.
Source: FICCI-KPMG Report 2016
% of Smartphone users accessing…
96%
44%
36%
97%
50%
38%
0%
20%
40%
60%
80%
100%
WhatsApp FB
Messenger
Hike
Oct-Dec 2014 Oct-Dec 2015
22%
19%
10%
37%
22%
17%
0%
5%
10%
15%
20%
25%
30%
35%
40%
PayTM Freecharge MobiKwik
2%
0% 1%
18%
10%
3%
0%
5%
10%
15%
20%
24%
10%
13%
9%
3%
49%
30%
23%
14%
4%
0%
10%
20%
30%
40%
50%
60%
42%
0% 0%
60%
12%
4%
0%
10%
20%
30%
40%
50%
60%
70%
YouTube Hotstar ErosNow
15%
6%
4%
0% 0% 1% 0%
15%
8%
6%
3% 2% 2% 2%
0%
4%
8%
12%
16%
20%
59%28%
8%
1%
4%
Top 100 YouTube Channels, by viewership
Film / TV
Music
Education
Health
Others

10. The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again.
Source: FICCI-KPMG Report 2016
Content - Global Digital Platforms

11. The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again.
Source: FICCI-KPMG Report 2016
Indian Digital Platforms

12. The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again.
Source: FICCI-KPMG Report 2016
YouTube
• Clear Market leader:
o YouTube has over 1 billion users — 1/3rd of all net users see at least 1
YouTube video everyday.
o People watching a YouTube video online has grown 40% & watch-time has
grown ~50%, annually for the past 2 years
o Creator revenue has increased 50% annually for the past three years.
o All of the top 100 global brands run ads on YouTube
o YouTube has paid out over $1 billion for legitimate content claims
• YouTube has launched local versions in more than 88 countries & in 76
different languages (covering 95% of the Internet population).
• Over 50% of YouTube views come from mobile devices. On mobile, the
average viewing session is now more 40 minutes.

13. The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again.
Source: FICCI-KPMG Report 2016
Digital – No more a ‘also’ platform
• The Digital platforms of web, mobile & web-connected smart TVs are the
present & the future.
• Content consumption modes & patterns are changing with a large number
of sub-18-yr-olds finding their ‘stars’ online.
• YouTube is taking the Indian market very seriously and has set up their
7th global ‘YouTube Space’ & also a ‘YouTube Educator Lab’ in India, in
partnership with Whistling Woods.
• Need for content to be tailored for both ‘digital’ & ‘India’ given the unique
characteristics of both.
• ANALYTICS & TARGETING – Audience analytics, Content-based
analytics, Predictive analytics, Campaign analytics

14. The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again.
Source: FICCI-KPMG Report 2016
The Opportunities in Digital
• IP Creation!
• No physical limits!
• Look beyond digital as JUST a 3rd screen with limited censorship.
• Multi-formatting ALL content to include Digital platforms
• Specialised writing / content structure for Indian digital platforms keeping in
mind the unique characteristics of digital & those of ‘our’ Indian content.
• Utilising the entire spectrum of the platform – clickable / interactive video,
AR/VR (360 deg video, etc), gamification of content & more.
In any industry, building volume is hard. India already has the volume and is
likely to be the largest digital free market by 2020-22. We now need to build
value to each unit of volume. Only way to do it is quality.

15. Thank You!
Chaitanya Chinchlikar
chaitanya.c@whistlingwoods.net
Vice President - Business Development & Chief Technology Officer
Vice President - Strategy & Business Head - Digital Media, Mukta Arts