The future of content consumption in a cross-platform borderless media ecosystem

As we navigate through this multi-screen, borderless media landscape, the spotlight now shifts towards uncovering the next frontier of media, delving into the realms of content, consumption, and user experience.

During a panel discussion at FICCI Frames 2024, industry leaders explored various dimensions of issues such as the evolving dynamics of content and programming in a cross-platform world, the potential shifts in audience metrics, the impact of 4K and 8K screens on movie distribution dynamics at home, the development of monetization mechanisms beyond advertising that extend to transactions, the potential transformation of influencers into their own media ecosystems, and more.

Raghav Anand, Partner at Ernst & Young and the moderator of the session, initiated the conversation by directing a question to Ferzad Palia, Business Head of JioCinema, regarding the changes anticipated in programming within the dynamic landscape of cross-platform content consumption.

Palia said that in the past year or two, there's been a huge increase in different types of content. If we go back about 3–5 years, there were only about 100 content creators in the country. But now, there are over a hundred thousand creators. Before, a platform might have had content from just a few creators, maybe 10 or 20. But now, in the digital space, each platform has around 400 to 500 creators.

“Over the past year, there have been significant changes, especially in the last 12 months. Some content that used to be free is now behind a paywall, while other content that was previously behind a paywall is now freely accessible,” Palia said.

“This shift has benefited a large number of new creators, approximately 1,00,000 worldwide. Additionally, the diversity of languages available is increasing. The entertainment landscape is rapidly evolving, and what we see today is just the beginning. Expect even more changes in the next 24 months,” he added.

When asked about the changing broadcast landscape, Saugata Mukherjee, Head of Content, Sony LIV, Sony Pictures Network India, reflected on discussions from a couple of years ago about the SVOD market and premium television growth. He noted a significant shift over the past 24 months, with blurred lines in the content ecosystem.

He said that there’s a shift towards profitability and rationalising content production. He further emphasised a growing consumer focus and a more democratic environment, with a vastly expanded audience.

“On our platform, with shows like "Scam" and "Rocket Boys," we offer high-quality content that has contributed to SonyLIV's success. However, we recognise the need to cater to a broader audience, which is why a lot of what we call habit-forming TV-like content is sort of coming in,” he added.

Furthermore, he mentioned that a shift has occurred, leading to the emergence of a new group of makers. What was once considered niche has now become mainstream, allowing these creators to showcase their content on various platforms.

This shift has affected both business dynamics and public perception. Additionally, larger networks like Sony have significantly invested in making the platform pan-India to appeal to a broader Indian audience beyond HSM. This investment trend is expected to continue into the upcoming financial year, he said.

“These are interesting times. As we have observed in recent years, the media landscape is constantly changing. It's so dynamic that nothing remains constant, and we need to adjust our strategies every couple of quarters, if not every quarter,” he added.

Moving on, Anand asked Rabindra Narayan, MD and President, PTC Network, about the change in the pattern of regional content consumption.

Narayan said, “Regional content is crossing boundaries. For instance, PTC Punjabi, the largest content creation company in the Punjabi language, operates globally, with the main leadership in Canada, followed by Pakistan, the USA, and Europe. About 65% of digital revenue comes from these areas, indicating a shift from being solely regional.”

Despite initial perceptions, the company is reaching audiences beyond Punjab, challenging advertising agency mindsets. The advent of digital platforms has opened new avenues, allowing access to homes in Pakistan, the USA, Canada, Australia, Europe, and even places like Spain, Narayan said.

“Now the next thing we are experimenting with is VR content. Over the past four years, entertainment shows, sports coverages, and even Gurbani broadcasts from the Golden Temple have been available in VR. The company is now venturing into a VR fiction series. These developments reflect the evolving landscape of content delivery, consumption, and creation, with constant experimentation to adapt to changing trends within a dynamic industry,” he added.

“A significant revolution is underway as content delivery methods, content consumption habits, and content creation processes are all undergoing substantial changes,” Narayan said.

Moving on, Vishnu Mohta, Co-Founder, Hoichoi TV, said that whether it's user-generated content (UGC), long-form, or short-form, what has changed recently is that UGC content now takes up a significant portion of people's time. This is what constitutes entertainment, and the power of entertainment lies in its democratisation. Anyone can start a video channel and find success.

“The ongoing question in our minds is whether the next big creator will emerge from those making UGC. Even though they excel at crafting short-form content, there's no reason to doubt their ability to delve into longer, episodic creations. They possess valuable insights into audience preferences, even if on a 20-second scale,” Mohta said.

“Ultimately, we are all striving to grasp what viewers desire and how their behaviours and habits evolve. Long-form content may offer insights we haven't considered before. Perhaps spending hours on 20-second videos is precisely what audiences want, showcasing a shift in viewing patterns,” he added.

While speaking about how AI is changing content creation, Darshan M., Chief Executive Officer (CEO), Pressman Advertising, said that in reality, content creators have been in the backseat. It's the advertisers who lead the creative aspects.

“If you ask people how many have discussed something at home and then seen contextual ads in their social media feed the next day or even within minutes, almost everyone has experienced it. Advertisers have always utilised this, but content creators have never really attempted it,” Darshan said.

“The future revolves around personalisation, where everything will be highly focused and tailored to individuals. We are also currently experimenting with AI-generated contextual content to enhance our experiences. Our aim is to display real-time ads on screens that relate to current events. Technology has made this process easier and more informative. Content creators will soon catch up with these advancements, implementing them on various devices. This shift will likely occur in different locations. Overall, the future is driven by AI, and it's interesting to see where we're headed,” he added. 

When asked about the next battleground for media, Mukherjee explained that while there's a focus on personalisation and hyper-personalisation, there's also a trend towards families gathering to watch content together at home. This shift includes the emergence of connected TV as a significant platform for delivering content directly to homes, a trend that has grown substantially in the past year. 

“Approximately 90% of television networks now utilise connected TV, such as smart TVs. This indicates a change in distribution methods, with a blend of content tailored for individual viewing and content designed for shared family experiences. Both approaches—hyper-personalised content leveraging user-generated and AI technologies and wholesome viewing experiences—are important in today's media landscape, and they will coexist,” he said.

Moving on, Narayan said, “Currently, we have been presenting to the Ministry of Information and Broadcasting to change the down-linking and up-linking policies, particularly concerning satellites. Satellites present various limitations. Without Indian satellites, we rely heavily on US, Russian, or European ones, which poses challenges in power exchange. Moreover, satellite broadcasts typically feature only one beam across the entire footprint.”

He mentioned that in today's evolving technological landscape, cloud-based broadcasting offers significant advantages. With cloud-based broadcasting, local advertisements can be seamlessly integrated into content tailored to specific regions.

Furthermore, Narayan mentioned, “This applies to fast channels, connected TVs, and linear TV. Additionally, cloud-based broadcasting enables higher broadcast quality, eliminating the need to compromise on standard definition due to expensive satellite bandwidth. Cloud-based platforms offer the potential for HD and even 4K resolution, matching the capabilities of modern TVs. This shift will also foster growth in the advertising market, allowing local businesses to advertise on larger platforms, driving significant market expansion. The necessary technology for this transition already exists; all that's required is a policy change by the government.”

Notably, it's not mandatory to use satellites; alternatives like cloud-based methods are viable and subject to the same standards and penalties for violations. This shift promises a revolution in both the advertising and content markets, with significant growth and opportunities on the horizon, he stated.

Meanwhile, Palia acknowledged that the monetising subscription business presents a significant opportunity in India. He emphasised that there are numerous opportunities available, each varying depending on the type of content and platform.

“We all recognise that AVOD presents a significant opportunity, with various aspects needing refinement in content creation, platform operation, and advertising strategies. Questions arise regarding payment, fair value, and the benefits offered. The subscription model also holds great potential in our country. Despite varied approaches in recent years, India already boasts approximately 120 million entertainment-paying subscribers, distinct from OTT subscriptions,” he said.

Furthermore, Palia stated that, however, achieving deep penetration and retention in the digital realm remains a challenge. This is largely due to the failure to establish habitual consumption patterns among Indian consumers, who are generally willing to pay for value.

Value here isn't solely about discounts but also about providing daily relevance, akin to television. Therefore, cracking the subscription model presents a significant opportunity, with the industry actively working towards this goal, he said.

“When discussing transactions, I believe consumers will increasingly have the final say, especially with the rise of digital payments and micro-transactions. With hundreds of thousands, potentially millions, of creators, consumers will want control over what they watch, when they watch it, and how much they pay,” Palia said.

“We can't impose traditional content creation methods on creators, as it could stifle their creativity and enthusiasm. Some creators prefer not to follow conventional formats, and we shouldn't force them to do so. It's about embracing this evolving landscape,” he added.

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