Transforming business need of the hour

There are no two ways about the fact that India will be counted among the top five economies in the world by 2020. The second largest internet user base in the world and home to over a billion mobile subscribers, it will become a key force of reckoning for global business, policy, and technology advancement.

Smart devices and reasonable broadband speed at competitive prices are proliferating in every nook and corner of the Indian Industry, the consumer is now hooked to virtual applications ranging from digital payments to over-the-top (OTT) video. Mobile devices are gaining currency, literally and metaphorically.

The Indian Government has embarked upon a journey of establishing a connected ecosystem for its people and industries to drive these developments further by deploying a country-wide fiber network and providing public wi-fi connectivity. Wireless connectivity through strong broadband services will become ubiquitous over the next 5 years.

Such rapid expansion will come in but at a significant cost to the industry. The balance sheet of most stakeholders in the broadcast and telecom industry is choked by investments in infrastructure development (fiber and broadband services like 4G) and content development. The other challenges for industries today are digital transformation and automation. With technologies such as artificial intelligence, cloud, machine learning, and analytics permeating every single application and process, there are large-scale disruptions, requiring industrialists to re-engineer their entire approach to product innovation and services.

Traditionally broadcasters relied on the linear services of TV platform operators to reach audiences. However, in the last few years leading broadcasters and a range of content creators have adopted direct to consumer (D2C) offerings through OTT services and multi-channel networks. These strategies offer the opportunity to own the consumer relationship and access new markets. At the same time, being successful requires consideration of, and investment in, B2C capabilities and skills such as technology, marketing, and data analytics.

Starting cloud-based broadcasting services for virtualized production and distribution in response to market dynamics on workflow, formats, cost, and customer demand is one of the key actions to be taken to sustain in the market. This service is software-based, so one does not need a physical location to run the operations. As a result, infrastructure and manpower cost reduce dramatically, and paves way to create and dismantle channels quickly.

With the recognition of OTT content soaring, it is evident that business models will change as technology and consumption habits continue to evolve. As companies move deeper into the online and mobile landscape, their mindset should not be that they are making a transition from the physical to the digital world. They will have to analyze where business provides unique value and build sustainable business models that deliver on this value. Companies that can successfully reconstruct their business models to keep pace with viewers evolving preferences have much to gain, as mobile and non-linear viewing are the future.