MUMBAI: Entertainment in today’s times cannot be termed as evolution anymore, it is a ‘revolution’, Zee Entertainment Enterprises MD and CEO Punit Goenka said on Wednesday while delivering a keynote address at Ficci Frames 2012.
According to Goenka, there are two main factors that are driving the revolution -- young population with high disposable income; and a new generation that is ready to embrace new technology at the drop of a hat.
Emphasising on the fact that new media would create unique revenue generation models for the entire value chain, he said that with the spread of adoption of content consumption, very soon new media will not be new media. It will be “The media”.
Goenka said content consumption is going through a sea change. Broadcasters are increasingly looking to engage young audiences through new media offerings. “With dependence on ad revenues going down, newer avenues will open up for content players. Niche and sports channels, currently unprofitable ventures, will start becoming viable businesses. 3G, 4G and Wireless Broadband will evolve as new platforms for distribution of content. Also, smart devices will drive consumption of content on-the-go.
Goenka also said that the ratings system in India is inadequate. It needs to be enhanced to give the right picture of TV viewing.
He said that GenNext is redefining the TV broadcast industry and to move forward content creators, content delivery platforms and broadcasters have to work in sync to meet their expectations.
“India’s young population is demonstrating huge appetite for digital content. Broadcasters and content providers need to ride on the tech wave to seize the opportunity. Technology is re-defining industries and consumer consumption. Broadcasters and content houses are working towards building anytime, anywhere access to content. Content producers are looking at partnerships with platform owners. Distribution players need to evolve into an intelligent pipe,” he added.
Niche is the way forward in the television space. “It is imperative to have fair price for the content available. Content has to scale up to command fair share of consumer’s wallet. Premium pricing should be demanded for exclusive content and consumers are willing to pay for such content.”
Talking about digitisation, Goenka said, “Consolidation and co-option will drive digitisation. Less than 20 per cent channels are profitable on standalone basis. With the implementation of DAS, as per the announced timelines, there would be accelerated conversion from analogue to digital subscribers. I believe that over the next 4-5 years, the television distribution business can evolve to a more transparent, organised and service oriented industry.”
“Young Indian with an average age of 29 constitutes a majority of wealth accumulators. They will decide which way the entertainment content and delivery mechanism moves over the next few years. At least 2.2 million jobs will be created over the next two years, resulting in the changing lifestyle of India‘s younger generation. Over the next 10 years, GenNext should constitute the majority of ‘wealth accumulators’,” he added.
As smart phones gain in popularity and acceptance, emerging youth markets such as China and India offer a bigger opportunity in terms of market size and potential. “India will leapfrog the United States and Europe’s combined markets to become the second largest youth smart phone market with 66 million owners,” he added.
