The media and entertainment industry has undergone a metamorphosis and has shifted beyond traditional mediums like print or analogue radio/TV, to encompass new digital formats.
Initially, new media referred to formats that allowed for electronic and digital communication such as websites, email, streaming audio and video, web advertising, chat rooms and forums, internet telephony, DVD and CD-ROM media. However, with newer forms of technology and communication being introduced through digital innovation, the definition and elements of new media have evolved. It now includes all consumer-friendly communication and distribution platforms that allow for interactive participation and user feedback using digital storytelling, microblogging, on-demand content, etc. through smart phones, social media channels, DTH platforms, interactive games and other omni-channel formats.
Key Trends and Factors in play in India
The M&E industry faces change and disruption due to redefined industry dynamics. New technology, digitization, government regulations, increasing uptake of social media, changing consumer awareness and preferences have all provided significant opportunities and internal business process implications to the industries. This in turn rolls out and optimizes new media channels.
Interactivity and On-Demand Content
Consumers nowadays are increasingly seeking premium content at a click and enabling “virtual” audience participation. Due to the popularity of live reality shows and sports, there has been an increase in the use of streamed content on mobile. Such a transformation has led to an increased demand for services such as pay-per view, voice/video-on demand, interactive voice response, and high definition in urban markets. The use of text messages and IVR to increase engagement with audience has also become popular.
Rapid changes in India’s mobility landscape have allowed broadcasters to reach out to the inaccessible/extreme areas of the country. As a result, both urban and rural consumers are more aware, participate more actively. The increased participation and the ability to provide interactive user feedback. This trend has been strengthened by an increasing presence of younger audiences on social media. Mobile providers are also taking advantage of key opportunities provided my new media through VAS and content offerings.
New media also presents innovative opportunities for advertisers to exploit digital content and platforms in order to provide the best customer experience. Companies are employing integrated campaigns via TV, mobile, websites and social media to create multiple revenue streams for an advertisement. Also, companies are better understanding the consumer needs and preferences through data analytics, and then using new media platforms to push relevant and customized content and advertising. This helps streamlining media planning & buying efforts and efficiently channelizing profits.
Digitization is creating exciting opportunities by allowing broadcasters to charge premium prices for these new content formats. For instance, around 45 million urban Indians send text messages during reality TV shows, which are charged at premium rates, in turn generating the majority of broadcasters’ digital revenue. This is being supported by Government which mandates the broadcasters to upgrade their infrastructure, offerings to roll out premium services such as HD, 3D, 4G and VoD.
Content and Asset Management
Technology advancement and innovation have altered both content and asset management in the industry. The ability to create new content and curate it, is the key to engaging with customers. Being able to customize content based on the channel and platform used is gaining importance in the new media. This has widened the use of crowdsourcing, co-creation and collaboration. However due to heavy content sharing on new media, ownership and piracy concerns are also rising and IP law and Digital Rights management is maturing.
Given the relevance and challenges of social media marketing communications, we also conducted a study of corporate blogs from Fortune Global 500 companies in order to examine which social media communication metrics, i.e., creators, content and interactions, have the greatest impact on the growth and size of an audience. Click here to read more on our study findings.
How is traditional media evolving?
To participate in the new consumer engagement model, traditional media channels must adapt, transform their business models, adopt innovative technology and integrate with new media to offer the best.
Print: Print and publishing houses must make their content available online as e-papers, websites and define newer subscription models that integrate print as well as online.
TV/Radio: Apart from providing digital rather than analogue content, the TV and Radio industries must incorporate newer content distribution models that cater to consumers’ demand for “on-demand,” “freemium” and “pay-per view” services.
Traditional media like print, TV and radio need to evolve in order to survive in a new media environment. They need to re-define the customer experience through integrated multi-platform distribution networks using DTH/Social Media channels/mobile in an innovative way. Businesses will also need to keep up with the latest developments in media and technology to stay relevant as the definition of new media is as dynamic as the continuous innovations that fuel its growth.
Click here to read more on India’s entertainment economy and digital media.