FICCI-KPMG-Report-13-FRAMES

Recommendations

Info

86 The power of a billion: Realizing the Indian dream Technology transforming media consumption release strategies for distributors allowing them to maximize the revenue collected. Technology is thus impacting the way media is made and distributed and also monetization. © 2013 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Mr. Sanjay Gaikwad CEO & Managing Director, UFO Moviez India Ltd. Media and the means of consumption of media have been evolving over the years. Media exists in various forms although today it is predominantly associated with video. Media can be informative, educational or entertainment oriented. Evolution in the means of consumption of various categories of media has largely been driven by technological innovations and to some extent by a change in content. Take for example, the case of cinema, the key form of entertainment available to the average Indian. Indian Cinema first began its journey in the form of black and white motion pictures without sound. As technology progressed and the ability to capture and reproduce the sound came into existence, movies became more engaging. Technology has had a major impact on the evolution of cinema, with better equipment during the production and the post production processes and with the way cinema is exhibited to audiences in theaters. Digital cinema players including UFO have made a significant impact over the past 6 years on how Indians watch movies in theaters. With better capture equipment during the production process, directors of movies want to emulate and reproduce reality to its finest detail every time their movies are screened. With our UFO technology we ensure that every screening is reproduced immaculately as is expected by the director of the film. Beyond this, UFO has significantly grown the business of cinema by taking the first-day-firstshow to small and big cities alike. A movie which would previously be screened in just 200 – 300 theaters is now screened in over 2,000 theaters on day one. This has significantly improved the probability of every movie to make money and ensure profitability. This has contributed to unprecedented box office numbers each time a big ticket movie is released across an increasing number of theaters. The INR 1 billion plus box office collections movie club has thus come into existence and is growing every year. However, just taking a movie to all the screens does not necessarily translate into more business. The challenge also lies in monetization, and ensuring that appropriate collections flow to the respective stake holders quickly. Transparency is a biggest challenge faced by the Indian Film Industry. The assumed under declaration of revenues also has an impact on rightful revenue flow to all the stakeholders. We’ve addressed this challenge with our Impact Exchange platform, where we provide computerized box office ticketing systems free of cost to theaters and enable instant settlement of dues to each of the stakeholders in a timely manner. The instant availability of sales data permit better, more scientific Technology is not only changing the business of media but has also significantly impacted where and how consumers today consume media. Consumer lifestyles have become increasingly busy with time. This has given rise to a need to consume media ondemand as and where one’s lifestyle allows. In western countries, where there is an widespread broadband access and high bandwidth at the last mile, on-demand media consumption platforms like Apple TV and Roku have flourished. In India, while the penetration of Internet has increased over the last few years, the constrained availability of consistent high-bandwidth internet connectivity will continue to be a challenge for at least the next decade. Further, with the high costs of licensing spectrum, bandwidth providers will continue to have to charge for data based internet plans. Therefore, the leveraging of the Internet as a true means of delivering high quality media consumption, apart from the occasional low quality user generated content that is viewed, is a while away for India. We have been working over the last few years in trying to solve this challenge ourselves. We have now developed a technology called MediaBoost, which will specifically address this challenge. While there is significant activity on the wireless front with operators considering enabling 4G networks for wireless internet access, this will never be sufficient to fulfill the ever increasing demands by consumers for media consumption and higher quality media. There are many companies with online on-demand services that have tried and failed predominantly because a consumer trying to access a media service online typically faces challenges of long waits, buffering breaks and low quality streaming. The other major challenge relates to the limitation of watching media on their computers instead of the television. We believe that the only way Indians can enjoy true on-demand entertainment is to look towards alternate delivery channels apart from the Internet. Satellite and DTH players have tried to address this with NVOD (near video on demand services) but again have seen limited uptake because of the lack of a pleasant user viewing experience. With our Media Boost technology, we’re enabling the existing legacy network that today connects every household with a television. This is the RF cable that runs through most homes and delivers regular cable channels. This cable network has been laid by an LCO (Local Cable Operator ) using the lowest cost cables and one that has been serving live television content for decades now. This infrastructure remains old and obsolete and the skill sets of the personnel managing the network are also underdeveloped. The upgrade is an arduous task. Most firms that today manufacture networking devices have reached data rates of over a terabit and assume that the cable networks used to connect these devices are adequate. Hence they are not able to address the India’s connectivity needs.
The power of a billion: Realizing the Indian dream 87 With our patent pending Media Boost technology , which has been developed specifically to enable high quality, high definition on-demand viewing of content on legacy networks using RF cable as a one way Forward path and the internet only as a low bit rate return path, we now have a solution that addresses India’s connectivity problems. This will allow an average Indian to subscribe to our service and get access to thousands of hours of on-demand movies, music, television shows and catch up television on-demand. The future of media in India is heavily reliant on technological solutions to enable utilization and monetization of existing infrastructure available, rather than installing new infrastructure which entails long gestation periods and eventually become unviable in the long run. Unless otherwise noted, all information included in this column/ article was provided by Sanjay Gaikwad. The views and opinions expressed herein are those of the authors and do not necessarily represent the views and opinions of KPMG in India. Conclusion There is a steady rise in the dynamism and confidence in India’s film sector. Increasing consumption in tier II and III cities, growing importance of regional markets, greater focus on market research, innovation in content and evolution of marketing and delivery platforms to serve different niches- all point towards a very positive future for the industry. © 2013 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Page 1 and 2:
This heading style is set in Univer
Page 3 and 4:
The power of a billion Realizing th
Page 5 and 6:
Radio too, is set for the - roll ou
Page 7 and 8:
42 Print Regional to the rescue 58
Page 9 and 10:
01 The power of a billion: Realizin
Page 11 and 12:
The power of a billion: Realizing t
Page 13 and 14:
Page 15 and 16:
02 Introduction The power of a bill
Page 17 and 18:
Page 19 and 20:
Page 21 and 22:
Page 23 and 24:
Page 25 and 26:
Page 27 and 28:
Page 29 and 30:
Page 31 and 32:
Page 33 and 34:
Page 35 and 36:
Page 37 and 38: The power of a billion: Realizing t
Page 59 and 60: 57 Hiring and retaining talent The
Page 87: The power of a billion: Realizing t
Page 91 and 92: 05 The power of a billion: Realizin
Page 95 and 96: The smartphone is a very sophistica
Page 109 and 110: “ With brand advertising gatherin
Page 111 and 112: Music The success of the iTunes mod
Page 117 and 118: 06 Round up of the year that was Th
Page 139 and 140:
Page 141 and 142:
Page 143 and 144:
Page 145 and 146:
FICCI 2013 143 “ The Amendments t
Page 147 and 148:
Page 149 and 150:
Page 151 and 152:
Page 153 and 154:
Page 155 and 156:
Page 157 and 158:
Page 159 and 160:
© 2013 KPMG, an Indian Registered
Page 161 and 162:
09 Outlook for the year The power o
Page 163 and 164:
Page 165 and 166:
Page 167 and 168:
Page 169 and 170:
Page 171 and 172:
Page 173 and 174:
Page 175 and 176:
11 Technology The power of a billio
Page 177 and 178:
Page 179 and 180:
Page 181 and 182:
Page 183 and 184:
Page 185 and 186:
Page 187 and 188:
© 2013 KPMG, an Indian Registered
Page 189 and 190:
Page 191 and 192:
Page 193 and 194:
Page 195 and 196:
Page 197 and 198:
Page 199 and 200:
Page 201 and 202:
Acknowledgement We acknowledge the
show all

FICCI-KPMG-Report-13-FRAMES

Create successful ePaper yourself

Delete template?

Save as template?