Entertainment, Transformed.Presented by Group 5

Rishi Jain Mohit Patil Venkat Pogaru Priyesh Saurabh Chirag Shah Arjun Padmanabhan

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Digital Video -A growing phenomenonFactors for growth

Demand for flexibility in terms of timing, volume and place of content consumption

Younger audiences accustomed to time shifted and non-linear video

Declining prices of smartphones and tablets along with rise in large screen smartphones

Increasing broadband and 3G penetration and gradually increasing streaming speeds

Roadblocks

Access to high speed

internet

connections

Expensive data

charges

Comparison of video usage

Comparison of broadband speeds

Digital Video An overview

YouTube rules the digital video

space in India

Largest share of online video

India expected to become second largest market in

2015

Rolled out a paid subscription service called

YouTube Music Key

I. Monthly subscription

at INR 9.99

II. Listen to music in

background on

mobile and desktop

III. Download videos

IV. Skip ads

Waiting in the wings Amazon plans to launch music, movie and video

streaming in 2015

Netflix to introduce

its subscription based

video streaming in

India

Ogle, s service for

English content, backed

by Pritish Nandy in beta

testing mode since Sep

2014

Ronnie Screwvala, former

CEO UTV Group and B

Saikumar, former Group CEO

Network 18, launched a

venture offering on demand

video, with investments of

INR1.5 billion

Content differentiation

Ease of content discovery

Tailoring content for customer

segments using analytics

Ease of payment

The way

forward

Reliance Jio to launch

an on-demand content

platform along with

its 4G launch

Comparison between VoD in India and VoD abroad

In this respect global players are way ahead of local players Local players need to have strong strategy, heavy advertising and other PR skills to create

market presence

Experience

VOD requires high end technology and network Needs to be delivered without too much buffering and pixilation High speed internet or broadband connection or Wi-Fi which is still evolving in India as

compared to US or Europe

Technology

Consumer awareness about new products, services and brands is growing in India, but at a much slower rate as compared to the market aboard

Video on Demand is fragmented in India VoD in India is targeted more toward middle class and upper-middle class consumers, which

is not the case in other countries

Market

Subscription models offered

Subscription Video on Demand (SVOD)

Viewers or consumers are charged a monthly fee that allows them to have access to the digital content of their choice. In India, we only have SVOD services offered by players like Airtel, Tata Sky, Qwik

Entertainment etc. Global players include Netflix, Lovefilm

Transactional Video on Demand (TVOD)

Viewers or Consumers pay for individual video on demand program. Its pay per view. This service is not yet offered by our local brands. Global brands include Voodoo, iTunes.

Advert-supported video on demand (AVOD)

Viewers are allowed to watch content for free; however they must watch advertisements at various points throughout the film. A portion of the ad revenue is then returned to the content provider. Global players

include YouTube, Hulu(US).

Competitive Landscape for digital video in India

Competitive Landscape for digital video in India

Competitive Landscape for digital video in India

Revenues from digital video is still very small but the industry is not discounting the future potential and is making investments

Social Media provides a multiplier effect for video ads since video ads if done right can go viral

A key risk is that customers are becoming accustomed to free content and changing the habits will be tricky

Sports can be a key driver for premium subscription. Starsports.comspaid streaming for ICC WC 2015 for Rs 120 had significant traction

Low credit card penetration, fear of using internet banking and lack of experience in using e-wallet is impending the growth of digital video

revenues

Monetization of Digital Video

Indian video content providers has increased drastically in the past few years

Fictional and non- fictional content Prominent content providers

AIBTVFBeing IndianPretentious reviewsEast India Comedy

TVF has separated itself from the packTVFPlay.com startedActs as an online channelNew content as well as old content from TVFOld comedy shows and movies also availableTie up with Uber

Rising Indian Digital Content

Key Figures

3m US customers per day

Operations in 24 other countries

5,000+Retail

Outlets

60,000+Employees

Peak value = $5bn

Expanding in UK,

Europe, Australia

Adopting & Driving Innovation

Retail Product Display Inventory Software Using Technology to Speed Transactions Store Opening Times 10am Midnight

Basically *everything* was new!

Key Success Factors

BLOCKBUSTER

Video on Demand

Cable TV

Low price Rentals

Satellite

Mail order Rental

Low price Retail sales

AND THEN

Blockbuster filed for bankruptcy in 2010

Key Features

Flat Fixed Monthly

Fee

Unlimited Rentals

No Return Due

Dates

No Late Fees

No Handling

Fees

Netflix did not invent a new technology - rather they

invented a new business model

NETFLIX

1998: Sales jumped from $1m to $5m

2002: $500m sales & 1m subscribers

2005: $1bn

2006: 5m subscribers

2010: 14m subscribers

THE SUCCESS STORY

65 million members

50 countries100 million

hours per day

Original series, documentaries, feature films

Unlimited, Anytime,

anywhere

No Commercials

THE COMPETITION

TRANSFORMATION OF THE MUSIC INDUSTRY

CURRENT SCENARIO

Caller Ring Back Tunes (CRBT)

Streaming/Subscription

Music Downloads

Major Digital Music Business Models

Share of Music Revenue based on sources of

distribution

FUTURE CHALLENGES & PROSPECTS

Piracy and Licensing Bottlenecks

Labels like T-series, Rajashri, Aditya Music have eased up their licensing

policies.

Still struggling to chalk out a scalable model. Whereby users would find it

valuable to pay for listening to music

online.

Need to find a unique proposition