At 4.6 hours of content consumption per day, India is behind China (6.4 hours) and the US (11.4 hours), according to the latest Boston Consulting Group (BCG)-CII report “One Consumer, Many Interactions”.
The overall media consumption in India is growing at the rate of 9% over the past 6 years, with per capita consumption growing at 2X the pace of China and 9X of the USA. However, unlike the developed nations, this growth has not yet started to cannibalize the traditional media. While digital consumption is growing faster, traditional media, specifically TV, has also seen a rise in consumption.
The report touches upon the behavioural difference of the consumers which has changed from a standard, concentrated hours of consumption a day to a fragmented time period throughout the day- the total access points for consumers have gone up by nearly 10X. The report also highlights the growing importance of technology. According to Karishma Bhalla, partner and director, BCG, $125 billion have been invested over the past three years by the media houses into tech companies. “Traditional media houses are making acquisitions after acquisitions to strengthen the muscle on tech and flex it in all forms- from generating algorithms to sports analytics.” The separation between tech industry and media is becoming blurred. Hence, every media house is also a tech company as well.
In the Indian media market today, investment in content is growing faster than the revenue. This is due to the importance of curated content, in line with viewers’ preference, which is nudging traditional players as well as digital natives towards investing in content. Netflix, for instance, has invested aggressively to match 3 times the investment made by top players like Amazon Prime and Hulu. This is creating multiple complications as it is beneficial for the customer but media houses need to figure out how monetisation of these can still create an ROI that is self-sustaining and can create a perfect environment for both consumer and business.
Media houses will have to don a new avatar and keep human connect alive by creating compelling stories on behalf of their advertisers which shall connect with their consumers, thereby increasing the footfall of digital dollar.