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Lights-Camera-Action-Cii-Report-2020 LIGHTS, CAMERA, ACTION… …THE SHOW GOES ON December 2020 ABOUT BCG Boston Consulting Group partners with leaders in business and To succeed, organizations must blend digital and human society to tackle their most important challenges and capture capabilities. Our diverse, global teams bring deep industry and their greatest opportunities. BCG was the pioneer in business functional expertise and a range of perspectives to spark change. BCG strategy when it was founded in 1963. Today, we help clients delivers solutions through leading-edge management consulting with total transformation—inspiring complex change, enabling along with technology and design, corporate and digital ventures— organizations to grow, building competitive advantage, and and business purpose. We work in a uniquely collaborative model driving bottom-line impact. across the firm and throughout all levels of the client organization, generating results that allow our clients to thrive. ABOUT CII The Confederation of Indian Industry (CII) works to create and Extending its agenda beyond business, CII assists industry sustain an environment conducive to the development of India, to identify and execute corporate citizenship programmes. partnering industry, Government and civil society, through Partnerships with civil society organizations carry forward advisory and consultative processes. corporate initiatives for integrated and inclusive development across diverse domains including affirmative action, livelihoods, For 125 years, CII has been working on shaping India’s diversity management, skill development, empowerment of development journey and, this year, more than ever before, it will women, and sustainable development, to name a few. continue to proactively transform Indian industry’s engagement in national development. With the Theme for 2020-21 as Building India for a New World: Lives, Livelihood, Growth, CII will work with Government and CII is a non-government, not-for-profit, industry-led and industry- industry to bring back growth to the economy and mitigate the managed organization, with about 9100 members from the enormous human cost of the pandemic by protecting jobs and private as well as public sectors, including SMEs and MNCs, and livelihoods. an indirect membership of over 300,000 enterprises from 288 national and regional sectoral industry bodies. With 68 offices, including 10 Centres of Excellence, in India, and 8 overseas offices in Australia, Egypt, Germany, Indonesia, CII charts change by working closely with Government on Singapore, UAE, UK, and USA, as well as institutional partnerships policy issues, interfacing with thought leaders, and enhancing with 394 counterpart organizations in 133 countries, CII serves efficiency, competitiveness and business opportunities for as a reference point for Indian industry and the international industry through a range of specialized services and strategic business community. global linkages. It also provides a platform for consensus- building and networking on key issues. 2 CII Big Picture AUTH RS Kanchan Samtani Managing Director and Partner, Boston Consulting Group Mandeep Kohli Partner, Boston Consulting Group The Indian M&E industry in 2020: A snapshot of the year that has been 3 Foreword Welcome to the 2020 edition of CII Big Picture Summit’s Knowledge Covid-19 has had a major impact on how we consume content both Report, in partnership with BCG, on the future of the Indian Media & in-home and outside and some of these will have long term implications Entertainment industry. In line with the broader theme of this year’s for the industry. Going forward we expect the digital trend to intensify, event, “Big to Bigger”, the report discusses how, despite the Covid-19 OTT adoption to continue rising, and the emergence of new business pandemic and the resultant stresses, the Indian M&E industry is models better suited to the new reality. continuing its trajectory of strong historical growth into the foreseeable future. The Indian M&E industry, at USD ~24 bn in 2020, already has a sizeable impact on the Indian economy. However, given India’s diverse local During the toughest weeks of the year, our industry provided much audience base, international appeal of content, large diaspora and need succor to the country’s citizens, as seen by the massive surge in existing cultural influences in many parts of the world there is significant viewership during the weeks of lockdown and beyond. From a demand headroom for growth. point of view, it is heartening that M&E consumption remained resilient. However, as was the case with other industries, this past year has been The industry faces key imperatives for the near future to ensure that it can a challenging one for the M&E industry as well. There have been many reach its full potential. We need to build new revenue sources, deliver a operational challenges, with hurdles in content creation and distribution better value proposition to our stakeholders (consumers and advertisers through conventional platforms. These challenges were made worse by alike), focus on our human capital base to develop the requisite talent the accompanying financial blow of declining ad spends across different base and invest in technology to improve our productivity. Adversity is a media (digital being the notable exception). Looking back now though, we great unifier, and this is the time for the industry to come together and can confidently say that the most difficult times are behind us. Operations deliver. are returning to normal with best-in-class safeguards and SOPs being established, and a recovery in ad campaigns has taken place. CII and BCG thank our stakeholders for their valued perspectives and support towards enriching the content of this Knowledge Report. We look forward to your continued feedback in enhancing the usefulness of this publication. Kanchan Samtani K Madhavan Mandeep Kohli Managing Director and Partner, Chairman, Partner, Boston Consulting Group CII National Committee on Media & Boston Consulting Group Entertainment and Managing Director, Star & Disney India India continues its unique multimodal growth story, with digital video being the fastest growing media platform over the last 2 years. Not surprisingly, this trend is expected to continue for the foreseeable future led by the ever-increasing smartphone and data penetration on the demand side and improving consumer experience with high quality and wide variety of content, and innovative pricing models on the supply side. EXECUTIVE During lockdown, both TV and smartphone video consumption surged as people spent more time at home. OTT continued its onward SUMMARY march, increasing its presence in Tier 2-4 cities. SVOD subscriptions continued to see strong growth rates on the back of high quality original and local content being created and marketed using free trial periods. Covid-19 accelerated the subscription trend as a result of out-of- home spending moving to in-home, and this is expected to be sticky due to the proliferation of platforms and content that is now available to consumers. Further, innovations in the form of India specific pricing have also helped make the proposition stronger and encouraged consumers to subscribe. Advertising revenues saw a sharp decline as a to diverse audiences, provide better data and result of the pandemic and are expected to be flexibility to advertisers, create content to ~16% lower than in 2019, with ads on all media tap the global market, focus on up-skilling of except digital expected to experience double- existing talent and development of new-age digit rates of decline in 2020. The recovery has talent, and investment in technology. Progress been differential across sectors, compounded along these dimensions will ensure that, the by a need to show higher ROI and control over effects of the pandemic notwithstanding, the advertising campaigns. This has led to higher 2020s will be extremely fruitful for the Indian allocations to digital media, which is expected M&E industry. to reach a share of ~15% in 2020, ahead of most pre-Covid projections. Though a cautious recovery seems to be underway and marquee events such as IPL have been able to grow over their 2019 levels, smaller events may continue to face pressure for some more time. While the Indian M&E industry already has a significant impact on India’s economy, benchmarking with other countries indicates plenty of untapped potential. Most segments still have headroom for growth, while segments like OTT are growing at a steep rate and making a significant contribution. However, to achieve the industry’s true potential, there are a few areas where concerted effort needs to be made. These areas include creating more original and local language content to cater Overview of the report 8 CII Big Picture SECTION 1 SECTION 2 SECTION 3 Indian M&E in Economic Key imperatives to 2020: The year impact and growth realize potential that has been potential of M&E • Create value for • Consumption and • M&E industry’s consumers and advertising trends impact on GDP and advertisers • Impact of employment • Identify new sources Covid-19 • Potential for of revenue • Outlook for the further growth • Invest in skilling and near future technology The Indian M&E industry in 2020: A snapshot of the year that has been 9 The Indian M&E industry in 2020: A snapshot of the year that has been 10 CII Big Picture The Indian M&E industry in 2020: A snapshot of the year that has been 11 Consumption of M&E resilient during pandemic; Covid-19 accelerated
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