The Indian Digital Content Industry grew at 28% in 2016 (as compared to 9% for the Media & Entertainment Industry as a whole and 3% for Film) and is expected to grow at 30.8% in 2017-2021 (as compared to 14% for the M&E Industry and 8% for Film).
Before we move ahead, let’s just look at the Indian M&E industry with respect to the marketshare of its components.

What is worth noting is the significant rise of Digital as a component of the Indian M&E Industry.
The Indian Digital industry is expected to QUADRUPLE in size over the next 5 years, from Rs77Bn in 2016 to Rs294Bn in 2021.
During this journey of growth, somewhere between 2019 & 2020, it is expected to eclipse the Indian Film Industry. Yes, I am talking of an industry that’s less than 15 years old which will eclipse an industry that’s over a 105 years old!

Let’s all pause to take this in!
Growth Base
Every consumption-based market has a base, a metric that defines its scalability & hence its growth factors. For Film, it is number of Screens, average seating size and the no of shows one can have in a day. For TV, it is number of Channels and no of hours of content one can have in a day.
For Digital, the base is internet users in India and the kind of content they are expected to be consuming using that internet going forward. India, at present, has approx 1.19 billion cellphone connections of which approx 400million are data-enabled. Over the next 5 years, we are expecting a 2.5 times increase in these, to reach almost 1billion internet-enabled cellphone connections by 2021.


The other factor in this equation is Tele-Density, which is the number of cellphone connections per 100 people of population. India’s tele-density presently is 93.88. However, India’s urban tele-density is 173.21 & rural is 57.45. Also, since 70% of India is considered rural, most of the 600million new data-connected cellphones are going to be in rural India.
It’s not just the number of connections though. It’s also what is expected to be consumed using all that data. There’s a 1.5times increase expected in video content consumption. That’s a whole lot of video content that there will be demand for.
The telecom providers are already battling for this pie. When Jio launched in 2016 with the statement ‘Data is the new Oil‘, not too many would have expected that in less than 1 year, it would reach over 120million 4G users, which is almost half the size of Airtel – India’s largest Telecom operator which has been in business for over 15 years. With consolidation & aggressive marketshare-capturing activities by incumbent providers like Airtel & Vodafone, India can expect an average data cost of Rs10 per GB in 2017, cascading down further to Rs 2 per GB by 2021. Which is AWESOME! That will further propagate increased monetary resources that a consumer would be able to allocate towards content consumption on the mobile, most of which will be video content.
I dunno about you, but me being from the Filmed entertainment industry am extremely happy that people will pay more for content and less for the pipeline that gets the content to them 🙂

Pieces of the Pie
The Digital content business has 3 pillars – CONTENT, PLATFORM & TECHNOLOGY (listed in order of importance, in my opinion)
Let’s start with CONTENT first. Why? Because if No Content then No industry. Simple. Its also both the most dynamic and the most underdeveloped aspect of the industry.
So, here comes the big question – what is so special about Content Creation for Digital Platforms?
Ever since YouTube / Netflix burst through over the past few years and YouTubers / Netflix-content-creators acquired their own space within the Film / TV content industry, Platform-specific content creation has been the most researched aspect of Film Education for the past few years. It has also meant that YouTube has launched its Educator Lab and has been working with Film schools around the world to impart their content insights to each forthcoming generation of film students. What the unique content characteristics are for content created for the various platforms out there is a subject on ongoing film education research.
Looking at the table below,
|
Film |
TV |
Digital |
Duration & Structure
|
110-180 mins
60-100 scenes
1-8 shots / scene
2D & 3D |
22–44 mins
8-10 scenes
1-20 shots / scene
2D |
3–60 mins
2-20 scenes
1-4 shots / scene
2D |
Fiction Content Structure
|
Primarily stand-alone, marginally serial |
Primarily serial, marginally stand-alone |
Primarily serial, marginally stand-alone |
Platform Viewing Details
|
Fixed frame, large screen, Captive Community viewing |
Fixed frame, small screen, Non-captive Family / Individual viewing |
Fixed frame, mini screen, Non-captive Individual viewing |
Key content characteristics
|
Audio-visual narrative spectacle |
Story & Character development |
High concept, writing-focused, pace is critical |
What we see is that the Platform Viewing details and the Key Content Characteristics go on to define the nature of content created and hence specialised type of content is needed for each viewing platform.
Further, and drawing from the tele-density & growth data as indicated above, by 2020-2021 nearly 80%+ of digital content consumers will be those that want Indic / non-anglicised content.
With content, its all about building a brand, an IP, which goes on to define the kind of content that a platform stands for. Netflix is a brand. We need to create such quality-defining content brands from India too.
Evolution of content & content creators for the same is currently already happening in India with a few players gaining strength in Hindi/English & Tamil/Telugu (AIB, TVF, Pocket Aces, etc)
The 2nd piece of the digital pie is TECHNOLOGY. With it being the bedrock of the industry, piracy prevention being highly critical and considering the big-video-data-mining benefits that content aggregators / managers can provide to advertisers, technology providers are going to play a big role in the digital industry going forward. Organisations like Vidooly, etc will add great value to both content creators, aggregators / managers & digital platforms.
I don’t want to talk much about these here as it is a specialised area which needs its own separate blogpost but to say that the 4 Vs of bigdata will end up defining success / failure of this piece.

And last, the 3rd piece is PLATFORM.
Nearly all the major global content platforms are in India now. Though India isn’t a large piece of their global market presently, it is definitely one of the fastest growing markets for all of them.

Our domestic entrepreneurs aren’t far behind.

We have over a dozen Indian Digital Content platforms at various stages of their existence. Some are actively commissioning fiction content whereas some are focussing on non-fiction / sports / international content. TV catchup viewing having made its way from YouTube onto the the TVnetwork-owned platforms has given their viewership & business model a big boost as well.
While there are multiple business models being explored by the various platforms, most of them are in the trail – error stage. That said, the time is not far away when the platforms will have worked out a well defined robust monetisation-based business model.

Trans-Vertical presence of Organisations.
Looking at the plurality of players present in the Digitial ecosystem, here is a good overview of ‘Who is doing what!’

In Conclusion – Digital is no longer an ALSO platform
Not two years ago, a content creator working in Film / TV and ‘also’ doing digital content was commonly heard of. Producers, directors, writers, actors, technicians, etc would still consider digital as the filler while they pursued their professional peaks of Film / TV. That is no longer the case. Today there are hundreds of people who are seeking and making digital their professional peaks.
This, if nothing else speaks of the great potential that The Indian Digital Content Industry carries with it!
-Chaitanya Chinchlikar