Media & Entertainment
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Media & Entertainment Data Center and Cloud Battle Card For Internal use onlyAll USD numbers converted to INR with conversion rate of $1 = INR 71 Sources: Public reports & whitepapers, company websites, primary interviews Media & Entertainment –DC and Cloud Battle Card Industry The Indian media and entertainment (M&E) industry is among the top five fastest-growing business Overview segments in the country, driven by increasing digitalization and high internet usage The industry is expected to be worth By 2020, an average person will INR 2,660 Bn by FY 2023 spend 84 minutes a day INR 1,436 Bn (2018) CAGR: ~13.1% (2018–2023) watching videos online; it was 56 minutes in 2017 Media companies spent INR Cloud computing adoption in 114.9–143.6 Bn on ICT the global M&E industry to TV & Print Digital Gaming Radio & infrastructure (2018) grow 9x during 2014–2020 Films Adv. Music 811 Hotstar, Zee5, Voot, and 319 Media companies spent INR 9.5– 116 SonyLiv account for 80–90% of 44 40 12.0 Bn (8–9%) on cloud services the non-user generated content (2018) streaming market in India Source: KPMG report 2018, Highlighted top 5 segments only in the above depiction Industry Digital-focused local business models are gaining momentum due to rapid digitalization, growing digital Drivers advertising, and data localization through cloud and other advanced technologies Growth in Digital Infrastructure Growth in Digital Advertising Average data consumption per person INR 189.9 Bn India’s digital advertising revenue is to reach 18 GB per month by 2023 expected to register a CAGR of 32% during 2017–2020 INR 82 Bn 800 Mn VoLTE subscribers by 2023, with Mobile internet advertising revenue is annual growth of 42.5% between 2017 expected to account for 56% of total and 2020 internet advertising revenue by 2021 (Global) 2017 2020 2x increase in online gaming, from INR Growth drivers of digital advertising 30 Bn in 2017 to INR 68 Bn by 2020 include: • Increasing adoption of 3G / 4G • Online news consumption Data Localization and Personal Data Protection Cloud as Enabler for M&E Industry Data Localization Law: Mandates the storage and processing of consumers’ critical data within India, starting Key benefits of Cloud: Reduction in 1 data center 15 October 2018 70% • Content discovery for footprint Personal Data Protection Bill*: Companies multiple audience • Improvement in time will be required to store users’ data (or Minutes 2 to market live copy) on a server in India 15 provisional cycle • Scalability to handle for storage and Cloud storage market for M&E: The market is expected to spikes computing register a CAGR of 24.1% during 2017–2023, to reach INR 3 178.6 Bn by 2023 (Global) Major media firms that use cloud and related services include * In proposal stage Warner Bros (Pega), Netflix (AWS), and Hotstar (Akamai) Emerging Use of latest technologies to provide advanced applications to customers is giving rise to the need for Technologies sophisticated and robust ICT infrastructure Managed Hosting AR / VR IoT AI / ML / Analytics Cloud-based technologies Creates immersive and interactive Enables the collection of data at Increases the speed of computing help companies adopt a scalable experiences and increases scale and leverage it to track users and on-demand cloud business model engagement time and offer customized content infrastructure • ALTBalaji uses AWS Cloud • ZEE Group is investing in AR • 90% M&E companies consider • Netflix leverages AI / ML to • Netflix is among the first / VR to build a 3D graphic IoT to be critical to some or all of assess the popularity of media players to migrate its studio (2018) their lines of business (PWC shows aired in India, by type data to AWS Cloud • Reliance Jio set up an AR / Survey) • Viacom’s data analytics • Hungama uses Netmagic’s VR lab in Mumbai to create • Warner Bros. is building an IoT capabilities have helped it to data center the first generation of platform to offer digitally develop use cases for cinematic VR filmmakers personalized experiences network data (2018) (2017) For Internal use onlyAll USD numbers converted to INR with conversion rate of $1 = INR 71 Sources: Public reports & whitepapers, company websites, primary interviews Media & Entertainment –DC and Cloud Battle Card Industry Value The industry is undergoing constant transformation across the value chain, driven by ever-increasing Chain consumer demand for personalization, abundant data availability, and next-gen devices M&E Industry Value Chain CONTENT CREATION MONETIZATION Concept Pre-production Development Post-production Distribution Platforms Consumption • Market Research • Storyboarding • Facilities • Testing • Content Rights • PC / Console • Unit Purchase • Idea Adoption • Licensing / Pre- Management • Editing Acquisition • Internet • Pay-per-view • Storyline Selling • Coding • Visual Effects • Distribution of IP • PDA / Mobile / • Subscription Development • Technical Design • Artwork • Processing / Content Handheld • Free • Scheduling • Production Support Formatting • Pay TV Content Analytics Recording and DB Computer Testing and Route Optimization Content Hosting Mobility and Reporting Management Integrated Processing Software / CRM Platforms Production Automation D C C I C Social Listening Designing and Real-time Data Live-to-Video on User Interface Analytics for Scheduling Digitized Collection Using IoT Demand Engagement Platforms Content Formats I C M Immersive Royalty Payment Remote Content Dynamic Ad Scalable Rendering Key Key Use Technologies Cases* and Content Video Intelligence Storage Insertion A C B C C C Key Influencing Technology D Big Data and Analytics B BlockchainM ML / AII IoTA AR / VRC Cloud and Storage *Many technologies / use cases are applicable for multiple instances Conversation Consumer preference for on-demand access to personalized HD content and increase in use of VFX are Triggers giving rise to the need for a robust and secure ICT ecosystem with scalable bandwidth capabilities Impact on Demand High Medium Low Infrastructure Enablers Technology / Trend Conversation Triggers Data Protection Cloud Services Transformation DC Colo Migration • Live streaming is expected to increase 15x by 2020; video will represent 80% of all internet traffic by 2021 Live Streaming • ALTBalaji has partnered with Tata Communications for high-capacity and Cloud cloud storage and bandwidth connectivity • India’s M&E IoT market is expected to be valued at INR 5.2 Bn by 2019 • The largest DDoS attack in 2017 reached 620Gbps; 25% of identified cyber attacks are expected to involve IoT by 2020 IoT (Global) • VFX requires extensive data storage and processor-intensive capabilities, which can be achieved using cloud • Prana Studios has selected IBM Cloud to run new high-resolution VFX rendering jobs to produce good-quality visual effects (2016) • Cloud storage capacity of the M&E sector is expected to grow ~13.3x between 2017 and 2023 Cloud • Amazon and Google have agreed to comply with India’s Data Storage Localization Law (Sep 2018) • 56% of M&E companies expect to invest in AI / ML by 2020; Amazon ML services, Azure ML, Google Cloud AI, and IBM Watson are the four leading MLaaS services for the M&E sector ML / • Netflix has built its own content delivery network and has invested Analytics in AI and Big Data to enable real-time content distribution among server clusters (2017) • 43% of Indian enterprises plan to adopt hybrid cloud by 2020; hybrid cloud workloads in India will triple from 13% in 2018, to Hybrid 43% by 2020 Cloud • Prime Focus, an M&E ERP provider, has partnered with Microsoft to strengthen its hybrid cloud-enabled media ERP suite (2018) For Internal use onlyAll USD numbers converted to INR with conversion rate of $1 = INR 71 Sources: Public reports & whitepapers, company websites, primary interviews Media & Entertainment –DC and Cloud Battle Card Service Comparison: Sify Vs. Competitors Data Center Infrastructure Sify Netmagic CtrlS Airtel ST Telemedia RCom No. of DCs 9 11 6 10 (Nxtra Data) 16 9 100% since last 10 Uptime 99.990% 99.995% 99.982% 99.990% - years Experience 18+ Years ~20 Years ~10 Years 12+ Years ~15 Years ~17 Years ISO20000-1, ISO ISO9001, ISO27001, 27001, ISO 22301 ISO 9001 / 20001 / ISO20000, PCI, ISO27001, ISO9001, ISO 22301 / 27001 / ISO 27001 / 20000 / Certifications 27001 / 50001 / ISO HIPPA, TIA942, ISO20000, TIA942 20000-1 14000, TIA 942 (Mumbai DC is LEED 18001 PCI DSS certified) Areas of Offense Areas of Defense • STT GDC India does not have managed hosting or cloud • ST Telemedia and Airtel have more data centers than Sify services, but partners with Tata Communications to offer Technologies. Further, Airtel is planning to build 10 data managed hosting and cloud to end clients. centers across India • Netmagic’s Noida and Chennai data centers operate on • CtrlS claims that together, its three datacenters, support leased premises, which make customers vulnerable to power capacity of 58 MW. The company is planning to security threats launch two new DCs in Hyderabad (100 MW facility) and • RCom’s Bengaluru data center (in Peenya) has been another two in Mumbai (60 MW facility). facing accessibility and theft related problems • Netmagic leverages its parent company NTT • Sify operates a national MPLS network, connecting 47 Communications’ improved managed and professional data centers, including third-party data centers. Through services capabilities to win complex projects its interconnections with global carriers, Sify can also • CtrlS’ data centers have been rated by 4 by ANSI/TIA-942