Impact of 3G on Traditional Media Industry

8/14/2019 Impact of 3G on Traditional Media Industry

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Impact of 3G on Business Model of Media HousesIn India

NITIN GOEL, NETWORK18





3G stands for third generation of wireless communication technology.

It refers to the pending improvements in the wireless data & VoiceCommunication through any of the variety of proposed standards.TheImmediate goal is to raise transmission speed from 9.5K to 2MBPS



BENEFITS OF 3G?



•Improved Infrastructure on the mobile platform I.e. faster transmission speed• Users will be able to access multimedia content on their mobiles anytime anywhere!

• Live streaming of Channels• Streaming of Videos

• Streaming of Music• Access big E-Mails• Video Conferencing on Mobile• Location Navigation• On Demand content• Uploading of content• Access bank Accounts• Conduct E-Commerce Transactions

USER BENEFITS

• Additional Distribution channel• Mobile Subscribers: 300 million• GPRS USERS: 30 Million

• Additional revenue stream• Strategic Differentiator

MEDIA HOUSE BENEFITS

• Additional feature on Mobile for users• Beyond basic telephony services

• Probable Differentiator • Additional Revenue Stream• Way to overcome declining ARPU

OPERATOR BENEFITS



CURRENT MODEL OF MEDIA HOUSES?



CORE AREAS

CONTENT GENERATION MARKETING

DISTRIBUTION ADVERTISING SALES

1 2

43

Traditional focus area

of media companies

Traditionally B2B Sales

•Generation of content by the editors/programmers• Reaching attractive TG with this content through Broadcast• Generating revenue by Selling content and/or Advertising•Generating revenue through subscription

CURRENT BUSINESS MODEL

The challenge for the traditional media is the emergence of new technologies, that have the potential

of offering services as per the needs of the specific customer. Be it DTH, IPTV, Internet & 3G all have

the capability of offering services on users’ demand.

Hence question arises how long the Broadcast medium sustainable & since when the Old Advertising

Sales model sustainable? Have a look(do we get some clues, here??)

Traditionally

Communication Dept.

Traditionally Free to Air

Or through C&S



WHAT MEDIA HOUSES NEED TO DO?



DEVELOP THE CONTENT DELIVERY PROCESS INTO THE KEY STRATEGIC DIFFERENTIATOR

• In future it will be difficult to build sustainable competitive advantage just based on superior content• Digitization will offer many new opportunities for customer interaction

• This means, differentiation will come not only from the content but also the way its delivered.• Beyond Functional benefits to Process & Relationship benefits

PROCESS BENEFITS

FUNCTIONAL

BENEFITS

RELATIONSHIP

BENEFITS

• product/service attribute• Value for Money•Quality

• Service• Emotional Relevance• Loyalty rewards• Relevant mutual

information exchange

• Word of Mouth

• Ease of Access• Broad Product Selection

• Simplified decision making• Convenient Transactions



EMERGENCE OF MOBILE AS A CONTENT DELIVERY PLATFORM?



Boston Analytics



•Vas industry expected to grow to 11K crores BY 2010• VAS industry is growing fastest, & Mobile internet as a medium is growingfastest under the same.• Eg. MOM(markets on mobile) application was introduced 10 months back for

GPRS users. Currently 500000 downloads with traffic one fifth of Moneycontrolwebsite.• Eg. Vuclip on mobile in India has a viewer ship of around million minutes in amonth(industry figures)

INFERENCE: These above examples gives the confidence about the potential of 3G in India



CURRENT 3G SCENARIO IN THE DEVELOPED WORLD?



•First Commercial launch of 3G by NTT Docomo in Japan on Oct 1 2001•Half the mobile users in Japan have migrated to 3G•Half the mobile users in Korea have migrated to 3G

•3G services introduced in March 2003 in Europe starting with Italy & UK• one third users migrated in Italy, 20% migrated in UK

BCG conducted a study on the changing media habits of the Mobile

TV users in the German & UK Markets. The insight that developed was

that 5% of the users have stopped watching television altogether, while

15% have reduced their TV Viewer ship by 20%.

Does this mean that Mobile will be a substitute for TV in the long run?

CONSUMER INSIGHT

PENETRATION PROGRESS

SOURCE: WIKIPEDIA



POSSIBLE BUSINESS MODEL ON 3G FOR MEDIA HOUSES?



SUBSCRIPTION• Media with real time content

• Business Channels• News Channels

• Sports Channels• M-news paper

• Real time Gaming• Multimedia games

ON DEMAND SERVICES• Movies• Music• Reality Shows

• Serials• Bollywood content• Sports content• News content

•Eg: Udayan’s view on Market

is highly demanded product

on IVRS

CONTENT SELLING• Creation of Mobisodes

• highly watched content• best of everything I.e.

bollywood, celebs,

cricket highlights,music, fashion shows,

etc….

BENEFITS

BOTH

OPERATORS&

MEDIA

Advertising revenue for the Web

will also get a boost. People will

be able to access web sites on

the mobile platform. Mobile

Platform, will give additionaltargeting filters to the advertiser,

in the form of location targeting,

Handset targeting leading to more

efficient campaigns.

ADVERTISING: WEB

Advertising revenue for the

traditional media will also get a

boost. Traditional media, always

had been a mass media.

Now, through this the ads will beable to be served more intelligently

In future based on Handsets,

location on pay per view model

for advertisers on free content.

ADVERTISING: TRADITIONAL

BENEFITS ONLY MEDIA HOUSE



THANK YOU



• Digital Media has started impacting the Viewer ship on TV in US, on readership of

Newspaper,Magazines.(US Data)• Growth of Digital Advertising has been highest at 69% compared to 18% for TV & 16% for print(India)*

• Marketers looking at higher efficiency Campaigns(ROI calculation on Digital Space is precise compared to any other medium)

Source:The UCLS Internet Report, Surveying the digital Future

* FICCI & PWC the entertainment & media Industry Sustaining Growth Report 2008

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Impact of 3G on Traditional Media Industry