strategy+business

ISSUE 84 AUTUMN 2016 India’s Triple Play What do feature phones, regional newspapers, and smartphones have in common? They’re all vehicles for the country’s remarkable move to digital broadband.

BY SUVARCHALA NARAYANAN

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1 sales & media marketing, INDIA’S R P LE TRI

strategy+business issue 84 PLAY feature

marketing, media & sales TRI P LEWhat do feature phones, regional newspapers, and PLAYsmartphones have in common? They’re all vehicles for the country’s remarkable move to digital broadband. by Suvarchala Narayanan

2 Suvarchala Narayanan Also contributing to this [email protected] article were Smita Jha, is a business writer and TV director and leader of the host based in India and entertainment and media Switzerland. She writes about practice at PwC India, and technology and startups for Munnish Puri, managing the . director of India Financial Advisors and Indian Film Advisors. All statistics not otherwise attributed are adapted from the PwC Global Entertainment and Media Outlook 2016–2020 (www.pwc.com/outlook).

The tiny commuter kiosk at the train station in And- smartphone-based media market. Over shaksouka (a heri, a working-class suburb of Mumbai, is a hub of poached-egg dish from North African Jewish cuisine) feature activity most afternoons. The proprietor, Shyam, sells and masala tea, their conversation flows freely from the dozens of prepaid mobile phone recharges each day, Panama Papers to the new Captain America film to

and he comes highly recommended for another ser- the local motion picture investment scene. Everyone at marketing, media & sales vice. “Bhaiya, ready hai?” (Brother, is it ready?) asks a the table is well informed. But when asked if they read 14-year-old boy. The kiosk owner nods and pulls out newspapers, only one says yes. “I always read news at an SD memory card from an aluminum box. The card breakfast — but only peruse the headlines,” she says. contains some Hollywood and Bollywood films, a play- This group is representative of India’s global list full of popular songs, and some episodes of Aap ki sophisticates. In media terms, they are digital self- Adalat, a popular TV show featuring hardball inter- aggregators; they get their information through Twitter, views with leading public figures. Facebook, and WhatsApp, following links to particu- The boy hands over Rs150 (about US$2.25), and lar stories on , NDTV, or New York happily inserts the card into his mobile device. That Times websites. A few of them regularly scan aggregator mobile, known widely as a “feature phone,” doesn’t apps like Flipboard, Inshorts, or Google News. What have a global brand name like Apple or Samsung. And they consider “news” is highly varied, is easily share- it’s not as versatile as a smartphone. But it shows videos, able, and has an extremely short life span. And they’re 3 and, unlike the shared TV in the boy’s home, it belongs reading just about all of it on their mobile phones, con- entirely to him. nected wherever possible to high-speed Internet service Although this sale would be labeled piracy in many from urban providers. quarters, Shyam sees himself as performing a necessary Meanwhile, rural communities throughout India service for the young people living in his community — constitute the largest and fastest-growing media market just a few members of a vast and underserved market of all: regional print readers. India is one of the few parts that could be called infotainment followers, after the of the world where newspapers enjoy rapid circulation new media they prefer. A year or two from now, many growth. With free delivery, and a business model driven of them may replace their feature phones with smart- by advertising, newspapers cost only 5 to 10 cents per phones, especially if the much-anticipated high-speed copy. For people who are largely first- or second-genera- 4G mobile Internet service is launched throughout tion literate, the print newspaper is still a mark of status India. In the meantime, they depend on their 2G con- and a newly discovered window on the world. Fami- nections and memory cards. lies buy several papers daily and read them together at About 30 miles away, a group of young creative breakfast. Commuters read them on trains and buses, professionals — writers, filmmakers, and a chef — are and discuss the contents during lunch and tea breaks. having brunch at one of Mumbai’s many international In this world, Hindi and English remain the two

cafes. They are representative of today’s full-fledged most popular newspaper languages — Hindi is ahead Previous pages: Illustration by Karolin Schnoor featurefeatures title marketing, of the article media & sales 44

------The growth broadband is being mobile of promot The government is alsoThe government accelerated promoting ac The Growth Trajectory The Growth current media factorsA confluence India’s of to led have transition The first point. is accelerated accesstech to Regulatory the Telecom In December 2015, nology. Authority India of announced that thecountry had than — asubscriptions more phone 1 billion mobile India is also China’s. second only to number the third- largest smartphone market, after China and the U.S., millionwith 239 smartphone users. is expected It to overtake States the in United 2016. ly, but they’re also succeed, they’re change. poised eachfor but To ly, mediacompany needs which decide to cansegments it reach, and then carve a business reaching out for model those target segments, especially in new digital forms. (See “Vineet Jain Leading on Media the into India’s page 5.) Future,” huge, because only are not the audiences growing rapid ed heavily by one of India’s most influential companies. India’s ed of heavily one by media businessconference Atthe hosted by April 2016 Indian of the Federation Chambers Commerce of and Industry industry (a major group), Reliance Industries chairman Mukesh Ambani Reliance’s referred Jio, to new $22 the of largest billion telecom venture, as “one transformational greenfield digital initiatives anywhere was His Jio widely of description noted. in the world.” 4G said, be, would broadband he service,It “a slated to population with speeds 50 India’s of percent 70 provide faster 80to percent than the currently available Inter net, with data prices well current below rates.” cess to digital technology. Its Rs1.13 trillion ($17 bil trillion ($17 cess digital to Rs1.13 Its technology. iDigitallion) India initiative will biometrically provide (continued on page 8) (continued ------These three vignettes are typical the of way the In Like emergingother economies, India is condens As Sandeep Amar, India.com CEO of Media, puts by farby regional — but papers in published vernacular languages such as Malayalam, Marathi, Tamil, Bengali, and Gujaratiare growingTelugu, faster a at pace.In to AND ENTERTAINMENT. it:“The truly opportunitybig lies rightnow in mobile, video, and vernacular languages.” The opportunities are THEIR MAIN SOURCE OF INFORMATION INFORMATION OF MAIN SOURCE THEIR ARE MOVING TO THE SMARTPHONE AS AS SMARTPHONE THE TO ARE MOVING tal, from newspapers consumer revenue print and mag azines in all languages an rose by estimated in 3 percent andregional are revenues publications’ expected 2015, annually percent the 14 to for next several grow 12 to years. At the same time, broadcast television remains popular, and the smartphone is increasingly prevalent. observersSome expect the English-language heyday of in Indiaprint last to years. only a few more dia media market is evolving. While newspapers and villages India’s in especially thriving, are magazines and in their non-English editions, hundreds millions of ofpeople are moving to the smartphoneas their main source information of and entertainment. ing than this — which more took evolution a century in just a few — into years.the West The digital, leap to if it will current its trajectory, continues on divide the coun media, try’s in effect, threeinto business models, each targeting a different audience: infotainment followers featureon digital phones, self-aggregators smart on in the cities,phones and newspaper readers in villages and small towns.All these of audienceswatch broadcast they but television, are moving digital to media news for and entertainment — just different at speeds. Market ing, advertising, and media companies that want win to inemerging useful economies may find it understand to the differences. HUNDREDS OF MILLIONS OF PEOPLE PEOPLE OF MILLIONS OF HUNDREDS Vineet Jain Under the leadership of Jain growth in circulation, viewership, and and his older brother, vice chairman revenues. And we’re aggressively on Leading India’s , BCCL has introduced building a digital media business that many innovations in advertising and over time could become larger than Media into the digital technology, including mat- our more mature businesses. Future rimonial and real estate portals; a smartphone app called Alive, which S+B: You were an early strong by Munnish Puri links scanned print images to down- believer in Internet-based publica- loaded videos; partnerships with the tions, back in the early 2000s. feature istory is history. I only care Huffington Post, Airbnb, and Uber; What did you see? “ Habout what’s coming next.” and Brand Capital, which develops JAIN: The newspapers in the West So says Vineet Jain, the managing and funds marketing efforts in India were dying. I felt that the same fate

marketing, media & sales director of BCCL, also known as the for startups. BCCL also owns Times would befall India; maybe not for Times Group. BCCL is India’s largest Internet Ltd., one of the largest digital 10 years or more, but eventually. media conglomerate, with revenues media providers in Therefore, we would have to establish of about Rs100 billion (about US$1.5 Asia. With entertain- a big Internet company. We invested billion) per year and with more than ment and media at the beginning. Also, the digital 13,000 employees. It publishes the industries facing medium is interactive, and the news- Times of India, the world’s largest-sell- massive disruption paper is a one-way, passive medium. ing English-language daily (reaching everywhere, we met Interactive media always wins over more than 7.6 million readers), and the Jain in his Mumbai office to ask about passive media. Economic Times, the second-largest- his strategy for the digital age. We believe that , circulation English-language business The insights here about media in our digital arm, will one day be a larg- newspaper (the Wall Street Journal is emerging economies are relevant to er business than BCCL is now. Today, 5 the largest). It also owns 40 FM radio many other media companies around it reaches over 171 million users, who stations, 15 online radio stations, 15 the world as they navigate major spend billions of minutes a month magazines, a number of popular tele- shifts in technology and audience across a number of our products. At vision channels (including , demand. the same time, we continue to focus ET Now, , and Zoom TV), on providing value to consumers and live-event businesses such as the S+B: What do you see as the greatest across all media — print, television, Miss India Pageant and the challenges facing BCCL, and how radio, and others. Awards (the “Oscars of India”). are you responding to them? BCCL traces its history to 1838, JAIN: The growth of digital has S+B: How are the dynamics of when its first newspaper, the Bombay altered the nature of media, and has news and journalism being altered Times and Journal of Commerce, was challenged norms of what it should by mobile technology? founded; Jain’s family has owned and be. We are fortunate in India to have JAIN: Mobile technology, in particular, managed it since 1948. Despite this size visibility into global trends, which al- is rapidly changing the way the news and longevity, BCCL is also one of the lows us to proactively address them. is consumed as well as produced. most entrepreneurial and rapidly chang- We continue to innovate in print and Capturing news is more “real time” ing media businesses in the world. television media, which drives their than ever before, and increasingly, Photograph courtesy of Vineet Jain featurefeatures title marketing, of the article media & sales 66 -

Traditional media houses and When we look at digital, there What is your view of social You have You opened a Brand We areWe beginning to act as newsrooms have to embrace social media. can’t fight You this technology. In fact, it generates a large part of digital traffic. have You to understand Facebook consumers, and follow the conversations they are having, because their reading habits are very different [from those of traditional consumers]. I tell our journalists to get on Twitter and Facebook, because JAIN: S+B: JAIN: S+B: the immersive experiences that will delight consumers. Unless media outlets can think about capturing consumer mind share with great product and content experiences, they risk losing their audience’s attention. Capital office in Silicon Valley. What is going on there? nities here. venture capitalists. invest We in small technology companies, and we also barter advertising in our media, in exchange for a small stake in these companies. aim We to invest at an early stage. are so many international technology companies that haven’t come to India yet. It could take them another five yearsor 10 to do so. want We to reach them much earlier; we think they would find markets and opportu media? - -

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Advertising is still underrep I constantly think about what What is BCCL’s approachWhat is BCCL’s These technologies need an Online, our increased presence cluding great connectivity, to provide is coming next. If you disrupt don’t your own business, someone else will disrupt it. thus We continue to experiment and innovate, leveraging our technology capabilities and our understanding of the consumer. For instance, Alive is our experiment with reality. augmented effective infrastructure in place, in JAIN: S+B: JAIN: to new technologies, like wearable devices and the Internet of Things? resented in India. Only about 0.35 percent of GDP is spent on advertis ing, compared with to 2.0 1.5 percent in the rest of the world. still We see room for significant growth. in performance advertising and clas tiser segment than ever before. In creasingly, across media, brands are looking for native solutions that are less about interrupting the consumer and more about embedding a mes sage or brand into his or her conver sation. Internationally, there is a huge opportunity to build a commercially viable model with the Indian audience at the core. This gets amplified when you consider the age dividend that India enjoys — its high proportion of young people. are We sure that the overseas young diaspora will become a valued audience over time. sifieds is openingup a larger adver - ,

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and and Karnataka Vijay are a core part of Our company was tradition India has a vibrant but frag Will advertising continue to anyone with a smartphone can capture the latest events. now We give all our journalists smartphones to video-captureevents live. are We also shifting our focus from long- form content to shorter, smarter pieces. Our ability to be pointed, fast, and crisp has improved substantially. ally centered around the elite Indian consumer. The India of Times Economic Times Economic their daily habit. But over the last 10 years,to 15 our entertainment prod ucts, such as Zoom Entertainment Network, , and Gaana [a music streaming service], and our non-English print brands, such as TimesNavBharat S+B: JAIN: S+B: be the dominant revenue model for do or companies, media Indian you foresee other revenue sources taking its place? mented audience. There are millions are There audience. mented of people with very different social, characterideological and economic, istics. How do you address the needs of such vastly different segments? land of India. feel We we also have a significant opportunity with the Indian population residing overseas. have widened our user engagement bases. expect We that the majority of our audience growth during the next few years, across media, will come as we expand further into the heart

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7 sales & media marketing, of news has changed completely. changed has news of definition The videos. fun and content, short-form entertainment, toward works. what is that but superficial, be may It attached. photograph one with exciting and quick and short is that something release to have will we Sometimes, first. published gets that story print big the for don’t wait we and news our update constantly we where newsroom, acommon of medium. digital the and television, radio, pers, newspa among content our sharing up end would we that and content, Times ofthe India that Iknew convergence. digital of thinking already Iwas channels, news television our launched first we When text. printed than more much be to reading. are people what and story agood is think they what between gap the experience they then content speaks to them? to speaks content of kind What audience. Indian the of percentage asignificant up make and on mobile. on and Internet the over it consumes likely most she or He atelevision. or paper news aphysical of be not may ment entertain and news of consumption of medium preferred the kid, class concerned. is news as far as long-form, to short-form prefer They page. front the on put to chose editor an what not sharing, are friends their what read to want They media. social on especially are, they wherever from content JAIN: S+B: We are moving from pure news news pure from moving We are direction the in moving We are has tomorrow of newspaper The For a 16-year-old urban middle- urban a16-year-old For Millennials [people Millennials age 16–36] Millennials want to consume consume to want Millennials would require video video require would

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been at the forefront of this campaign, campaign, this of forefront the at been Times of India The has scrutiny. and audits to up stand can that e-auctions toward move We should India. in corruption of cause biggest single the —is spectrum broadcasting or coal —whether resources natural of allocation opaque and arbitrary the that maintained I’ve adecade For dealings. its in transparent and fair be jobs. create and grow to hand afree industry and business give then and rules, clear-cut and reasonable, modern, down lay should They development. on focus instead should leaders Political orientation. sexual or religion, food, of matter it’s a —whether possible as much as lives people’s of out stay should legislature and government the Ithink liberty. and freedom personal lars. Why is that? is Why lars. dol advertising in shift large ingly acorrespond seen haven’t we TV, and print on spent time than greater far is people young by media digital traditional media altogether.media traditional ignore can we before time along take will it expect we faster, growing is ing advertis digital Although relevant. be always will reach services), financial apparel, products, (consumer nesses busi large-format For measurable. more be may advertising digital though even time, along for change not will This ignore. to advertiser any for easy not is which reach, offer JAIN: JAIN: S+B: JAIN: S+B: and thinking decisions own your influence that values core the are What motto. your as change” “driving mention you The government should also also should government The On your Twitter profile, profile, Twitter your On on spent time though Even The traditional media outlets outlets media traditional The I am a great supporter of of supporter agreat I am ?

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continuously learning. Iam media. digital in day, especially anew is day Every now. right exciting very is industry media the in business To in be model. business company’s own our disrupt and constantly, vate inno quo, status the challenge to ready be We should risks. calculated take and zone comfort her or his of out get to herself or himself push should aleader Ibelieve country. this and industry this in especially change, driving means inevitably that And incorrect. politically being means it if even just, or right is think governance. good of root very the to went and importance, national of acampaign was This process. this up clean to worked really has ment govern the that say to I’mand happy events, and out-of-home advertising. out-of-home and events, live entertainment, filmed of businesses the managed he where 2009, to 2004 from Media BCCL’s Infotainment Times of officer operating chief the was He Matters). Trust (Only Advisors Financial Indian and Matters) Content (Only Advisors Film Indian of director managing the is munnish.puri@indianfilmadvisors.com Munnish Puri In general, I’m driven by what I I what by I’m driven general, In - -

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------(a lead Siddharth Varadarajan, thewire.in of founder A third major factor, India’s high-growth India’s A third economy, factor, major “India is the fastest-growing ad market among literate low-income readers.literate low-income (a the news of Hindu and editor site) former ing English-language newspaper in South India), says, “Indian newspapers are terrified raising of their prices. They believe that growth the phenomenal seen have we is because the papers are really cheap.” has helped increase advertising revenues throughout the India industry. currently has the vibrant most economy theof BRIC nations. Millions in middle-tier people of cities and small towns are eagerly entering the con and buildingsumer economy their personal wealth. In the International MonetaryApril projected 2016, Fund annually, percent which is growth GDP 7.5 at India’s higher than The entertainment and China’s. media industry directly high benefits from the economy’s growth; example, for entertainment and media advertis ing grew revenues than year-over-year percent more 10 and are forecast maintain to anin a compound 2015, nual growth As 2020. might to 8.6 percent rate of one expect ina newly industrializing the catego economy, ries with the largest ad spending are consumer pack goods), consumer aged goods (known as fast-moving e-commerce. and retail, all declares markets the major C.V.L. the of world,” Srinivas,chief group executive Southeast of Asia for M, a global adds,Group He media investment group. was thebest year had growth adspend for “2015 we’ve in the last years. five While digital will remain the fastest-growing the India platform, of few is large one markets all where traditional media platforms will show positive growth.”

------India’s media are habits changingIndia’s as a result. In her growth tremendous content in mobile India’s Yet based digital identification all for citizens. is also It dramatically increasing connectivity, particularly in ru digital transition point:nation’s increasing and literacy, hasthe way it expanded me the print audience for annual report on the Internet economy, Maryannual Meeker, the report economy, Internet on partner Kleiner at Perkins Caufield estimated & Byers, all of percent traffic Internet 65 that in India in 2016, willtake “The is no phones. mobile place mobile on as some the screen,’ elitistlonger the or ‘second screen, India says CEO Joshi, of Paritosh used it,” refer to to TV (a Hindi news channel with 90 million subscrib consumption has the at come expense not print. of in partThat’s because a second key of factor in the OF THE WORLD.” WORLD.” OF THE MARKET AMONG ALL THE MAJOR MARKETS MAJOR ALL THE AMONG MARKET MARKETS ral areas. Digital India has promised install to broad free in public Wi-Fi band in villages 250,000 2017, by schools and spots universities, in hot Wi-Fi and public the Ingov addition, all Indianmajor 2019. citiesby is electronicernment developing healthcare, education, infrastructure, and banking services, all which of are already drawing people online. isers).the democratized personal,most “It ubiquitous, are a mo andscreen, the India We majority of it. is on bile-first country.” dia. The country has up percent, a literacy 71 rate of and in boasts percent the the 1940s, from of 12 one highest literacy growth rates, per year. 9 percent about compared with the Indian rest the of world, Moreover, ing allow revenues keep to publishers the price as low Thisas Rs3about cents) has (5 per copy. made the “INDIA IS THE FASTEST-GROWING AD AD FASTEST-GROWING IS THE “INDIA residents pay very pay residents little newspapers. for Fifty years ago, newspapers had subsidies; government advertis today, newspaper an into aspirational commodity newly for

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9 sales & media marketing, monthly active users. monthly active of 6.5 have atotal which million 10 in tions languages, edi app with aggregator news Indian an DailyHunt, Twitter; use They and Facebook; channels. tainment enter and news over traditional curation to peer tial par highly and oriented, open ideas, to new globally are they restaurant, Mumbai of that habitués the Like results. who track those and marketers, and advertisers Web the (on owners the elsewhere), channel and and ers publish the creators, of the ecology,media consisting providers interrelated —its own media and tainment group unique of its own enter attracting thus is sector Each countries. of population many total the than larger of India’s for audience each The is subsectors media India’s MediaEcologies HAS 2MILLIONMONTHLY VISITORS. “PUBLIC OPINIONISTHENEWSUPERPOWER,” AND OPINIONSTARTUP WITH THESLOGAN YOUTH KIAWAAZ, ACROWDSOURCED NEWS with them.”with to move we had “We startup. realized media digital ed to cofound Factor Daily,who left atechnology-orient Times, editor Economic of the formerthe technology content mobile on phones,” their Mishra, Pankaj says consuming generation. “More [are] of audiences our parents’ staple of were the their that print newspapers the forsaking are Not surprisingly, millennials culture. oriented its digitally enormous with youth population content. to digital moregrate quickly to mi expected are they thus —and other newspapers of readers the than moremore and urban educated, tend to younger, be readers revenue their numbers, and continue circulation strong to post they Although newspapers. English-language for decline: headed be Consider, for example, the digital self-aggregators. self-aggregators. Consider, digital the for example, This finding reflects a fourth major factor: India’s major factor: afourth reflects finding This to of print publication one appears Only category ------their articles and videos short and full of hooks. Most of of hooks. full and short videos and articles their tend phones, keep to follow they sites that feature their look good.” them make that stories share Patil, “where will readers says effect,” “There’s psychology ahuman of discourse. level the raise actually that qualities network–like social have efforts digital identity), these real their ments with com post people and discouraged is anonymity when Global. Tiger from funding in million $24 raised has and app news Indian fourth-most-popular the is words, it stories to 60 publishes news the limits which Inshorts, ScoopWhoop production in avideo invest unit. Talkies, it intends which to Capital, Kalaari from million $4 raised ScoopWhoop, people, young at aimed site other An Kapur. Ritu of Network18, wife, director his and former founder managing and Bahl, byed Raghav content found venture adigital Media, by Quintillion it funded is monthly visitors; contributors 2million and “Public superpower,” opinionnew the is 35,000 has opinion slogan and site the news with crowdsourced a Youth Awaaz, capital. venture someket, with Ki Twitter. and book Face from comes percent 80 of its traffic Almost ance. ambi media–style to its social success that attributes months. Patil four its first in readers to amillion grew us.” would find audience our Scroll Indeed, that stead We in audiences. trusted to chase bar lower quality the India.” “We He adds, not did nation site for thinking a“desti as he describes which startup, news a digital group,” Patil, founder of Scroll, to this cater Samir says The infotainment followers are very different. On On different. very followers are infotainment The (for example, to community foster designed When mar this to reach trying are other startups Many we that “We’ve beginning the from clear very been

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strategy+business issue 84 features titlemarketing, of the article media & sales feature 1010 ------Explained 90 in Seconds, condenses complex issues Another hopeful enterprise is Ping Digital Broad These emerging video enterprises are betting, of The Strategic Response The Strategic What these do trends mean the for business a of model start mediamajor with, company? the advantage To is still digital with over print comes advertis to it when ing revenues. Close to 40 percent of 2015 advertising ing 2015 of 40 revenues. Close to percent spending publications,and inprint to India less went diencecategories: the increased popularityvideo, of especially streamedwhen downloaded or from the In ternet. Indian investors are scouting actively video for companies. Bettingcontent this on trend are startups like Nyusu, a self-funded venture. The self-proclaimed multi-lingual, video“one-minute, news Android for app short videos provides in sixphones” regional languages, featuring journalism. opinion cast, launched by Govindraj Ethiraj, the founder and explains He UTV. Bloomberg of editor-in-chief former that the behind motive Ping was whether “questioning wantedwe cater to the to audiences yesterday of and Ping the create to for audiences or tomorrow.” of today, offers infotainment categories such asfood, music, gaming, serious top more fashion, For and technology. ics, Ethiraj also founded Boom Live, an independent digital journalism initiative focused what calls he on his of most popular One “impact video se docu-news.” ries, like the European migrant crisis very into primers. brief says. he “Our next in 30 seconds,” step it is do to course, that the smartphone and broadband continue taketo a reasonable expectation; marketshare. It’s an International Data Corporation report taps India as one theof fastest-growing smartphone markets in the Asia- with region, Pacific sales4G devices of outpacing those theirof counterparts, 3G and smartphones expected to from their currentmove market 40 percent share 50 to like If projections 2016. the of by end more or percent these are correct, then in many villages, video will not arrive through broadcast channels. today’s in In People dia, evenwhile watchinglarge-screen will TVs, get their news and information through the Internet.

------, the celebrates the , ) IE the world’s largest-selling the world’s English has grown 11 percent per year percent has in re grown 11 are making similar transitions. As in the India’s traditional mediaIndia’s houses, which display a Manyare publishers focused theregional on print Although the size this of media market is often ig hastrend One accelerated growth all for three au Times of India, of Times flagship Hindi-language newspaper published by the Hindustan Times, U.K., a person’s choice of newspaper of choice often reflects his a person’s U.K., political her or stance, as and religion, much profession as geographic example, location. For Hindustan, English. is The expanding Times Group regional- 12 to language editions. The Hindustan Times, and the IE deepknowledge their of varied audience, tapped have thisinto market with digital offerings. example, For Indiatimes.com,the most successful English news the of publishers belongs the to Timeswebsite, Group, the readers, generally who languages favor than other thesemedia popular offer of sites combination a head lines; film information; and sports, lifestyle, and auto, news. market digital verypaper’s experience saying, happy by “I’m with the reach the of and last revenue two years.” years,cent compared English- its with for 5 percent 4 to nelsin Hindi, which in turn language; is just one daily. The site has 19 million has per month. unique visitors The site daily. 19 NDTV’s English and Hindi as sites well India as Zee’s are.com among the largest digital pullers crowd in this market. Anant Goenka, new head media of another at the Indian newspaper, Expressmajor ( language equivalent. several of just chan one major India That’s combined. channels and eachTamil Telugu millions tens have of more viewers. nored by those outside the country, India’s media lead those India’s the by country, outside nored ers are keenly India aware it. TV of CEO Joshi calls the English-speaking vanishingly audience “a small minority” in comparison. the example “Take just of most says, he India’s referring of channel,” my one to popular Hindi-language news channels. draws “It a viewership around of 80 compared million per week,” with 1 million all for the English news channels in

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11 sales & media marketing, Internet-based news is more likely to be aimed at urban at urban to aimed be more is Internet-based likely news and audience, news television of the one-tenth size the only still Internet is The audience a vehicle. Internet as doesn’t work here.” thinking That that. from tracked for. back paying Iquickly worth of content was that IE apaywall. institute eventually ago,” IE years says job four this Ibegan erode. “When will markets their that consideration by of amajority for publishers, fear serious with not treated are paywalls, as such vehicles, subscription not pay much Digital for information. will subscribers that held widely for view the print —and times current levels. to Rs192net would rise or six billion), (about $3 billion spend on Inter the spent platform, advertising on each time to the were proportional spending advertising tal online,” time digi he engagement If wrote. media their spent over half Internet access with “Indians habits. don’t levels white paper, spending these usage reflect estate. real and products, care personal food, as such consumer-oriented in sectors especially built, are brands where It medium play: the is advertising aprestige as India in regarded is particular, for Print, in television. billion) ($3.2 billion for Rs204 print billion) and ($2.5 Rs163 with compared billion million), ($499 billion —about Rs32 much smaller remains advertising ternet of amount In total television, the percent for broadcast 2015, 5.3 with percent for compared 13.5 print and by percent 24.2 in grew spending Internet advertising Although of forms broadcast.) went rest to various (The on Internet advertising. was of atenth spending ad than Moreover, advertisers have yet to fully embrace the the embrace Moreover, tohave yet fully advertisers model One problem, ad-subsidized the is of course, pointed Patil out a2015 in Scroll’sBut Samir as ’s Goenka, “I believed that we would we would that “I’s believed Goenka, was creating the kind kind the creating was - - - - day for Rs10, they readily subscribe.” forday Rs10, readily they or 10 a videos unlimited a one-time payment like plan, won’t they video, for each do it. But them you if offer time to pay each users “If you ask example. an Rs1 as one-minute for Airtel’s video recalls service, demand problem.that asimple SMS, have solved through billing carrier direct Yippster, offer as such which cropayments companies mi Online process. safer) a more (albeit cumbersome payments online make authentication rules two-factor government’s the cards, credit possess where individuals month. per Even videos about 50 million views ence content audi whose PK company Online, distribution by the and music site Saavn Indian by the successfully employed been already It payment method. has early probably successful most the be will mobile carriers through billing cards, have credit Indians few relatively Because online. of video amounts massive to watch gin of people be when millions —especially solidify media for digital audiences the see companies when media models,” business own he says. their to disrupt have incumbents to while lose, “Outsiders have nothing conventional practices. past leapfrog can where they India as such countries in especially companies, media over incumbent advantage — have an data usage track and gather easily can — which startups digital time, over that argues Lightbox, firm private equity based access. individual than more oriented to family and more across spread geographies, more is varied, TV and on newspapers traffic The self-aggregators. digital Some publishers believe the subscription-based subscription-based the Some publishers believe of CEO Vuclip, Jakatdar, avideo-on- Nickhil of course, vanish, well may concerns of these All Mumbai- at the capitalist a venture Kothari, Vikas - - -

strategy+business issue 84 features titlemarketing, of the article media & sales feature 1212

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Mar. 2016: Looks 29, at Nandan Nilekani’s In the end, however, you cannot you this let In the however, end, broad thesemarkets will require differenta adver to approach monetization. and subscriptions, tising, factor big all the to one segmentation blind you three in have groups common:They are becoming mobile- first audiences. India, along with other developing economies, will millions have soon connected, of ener getic individuals ready digital for media that meets their aspirations. They see themselves living of in a world Theyopportunity. all want it have to — all the media and in- accessibly, delivered immediately, theof world They want screen that theexpensively. one is inexpen and always ubiquitous, sive, As on. in the rest the of thesmartphone world, is a gateway news to and enter tainment exist that just a few didn’t years ago, and that digital at evolve continues to speed. Resources Dan Bricklin, “Radical Intimacy and the Smartphone,” s+b, 2016: Brief summary of the distance many companies still must travel to adapt to the close connection people have with their mobile devices. Roger Martin, Sally R. Osberg, and Jennifer Riel, “Social Entrepreneur ship by the Billions,” s+b, project to provide digital ID numbers throughout India as an example of effect large-scale change. to how MediaNama website, www.medianama.com: Good source for all things digital in India. YourStory website, http://yourstory.com: A media platform for startups and entrepreneurship in India. NextBigWhat website, www.nextbigwhat.com: Covers digital entrepre neurship, with a strong focus India. on More thought leadership this on topic: strategy-business.com/outlook ------Hindustan Hindustan a livemint.com, (for property). These allow Indian media companies The stakes are high media for and entertainment areIf you a media enterprise leader — within India Wall Street Journal Wall monetization and advertising models may by be helped a multiservice be “Pure news approach. offerings won’t enough Amar. sustain to says India.com’s a business,” itself by enough. is I see not the model content “Even the of future com content, being of combination a COMMUNITY, AND PERSONAL SERVICES.” AND PERSONAL COMMUNITY, companies in India. Overall, total entertainment and media is expected revenue reach to Rs2.7 about trillion tril rising billion) 2020, by from Rs1.6 $41.1 (about lookingor in from another country — the three audi FUTURE WILL BE A COMBINATION OF CONTENT, CONTENT, OF BE A COMBINATION FUTURE WILL TO SUSTAIN A BUSINESS. THE MODEL OF THE OF THE MODEL THE A BUSINESS. SUSTAIN TO and personalmunity, assistance services.” news Some in curatedwebsites India include now city guides and local referrals, whereas partnerships others include with suchas providers global the Huffington content Times Ltd.), (for Internet QuartzPost Scroll), (for and the Times their provide globalto news–hungry audiences with di versified while international enabling content, and U.S. European news media companies tap India’s to into promising markets. They already from traffic know, on their ownthat websites, theysizable have potential In dian readership. this of Much will be drawn billion) in 2015. ($25.1 lion from advertisers, which tap the consumer into demand a giantof emerging middle class. ences India starting of a solid give you may place. You entertainmenthave media the or for vast tailor-made in fotainment-craving their population on feature phones and smartphones. Perhaps you have niche mobile news that caters content the to sophisticated urbanites. Or your future growth may lie with the vernacular print smalleraudiences cities and in India’s villages. Each of “PURE NEWS OFFERINGS WON’T BE ENOUGH ENOUGH BE WON’T OFFERINGS NEWS “PURE strategy+business magazine is published by certain member firms of the PwC network. To subscribe, visit strategy-business.com or call 1-855-869-4862.

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