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Digital world is here to stay

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Digital world is here to stay

Neeraj Roy, MD & CEO, Hungama Digital Media Entertainment Pvt. Ltd.

On the digital industry
The year, 2011, has been exciting for the digital entertainment, advertising and marketing industry. With the advent of 3G services with various operators, a higher penetration of broadband subscribers, and growth in the devices market with new launches of efficient and inexpensive smart phones and tablets, the Indian digital industry is all set for a big leap. These developments are set to have a significant impact on the consumption patterns of digital media and advertisement opportunities on all digital platforms.

The year saw social media rise as a platform representing the voice of the common man with the Anna Hazare campaign and Keenan Santos & Reuben Fernandez brutal murder case. The year also saw an upsurge in mobile internet and advertising. There was a huge rise seen in the applications sector. Applications moved from only being restricted to mobile handsets to several mobility devices such as tablets, new age laptops, net books and televisions. The App economy infiltrated into these devices as well, and we saw several hardware manufacturers integrating an app platform as part of their offering.

Besides, there was a rise in the gaming sector with social gaming taking a leap in consumption. Bollywood capitalized on this trend as games help in increasing the shelf life of a movie and enhance top of mind recall. Social gaming created excitement around movies and helped connect with movie goers. According to FICCI KPMG report 2011 - Mobile Gaming is growing at a CAGR of 45 per cent to reach 17.4 billion by 2015.

It was also a year for growth of the industry. The year saw Indian internet users cross the 100 million mark according I-Cube 2011 report findings by IAMAI & IMRB. There has been an incredible growth in various sectors.
On the growth front
Growth in Content - The year saw growth with the proliferation of devices creating new channels of communication for personalised and localized content. Faster broadband speeds and high user demand resulted in content being consumed in different ways.
Growth in Advertising - The advertising ecosystem underwent a huge shift. Advertisers went from advertising based marketing to building a dialogue with the customers. More and more brands realized the potential of the interactivity and measurability that the medium had to offer.
Growth in Technology – The year saw the roll out of the most awaited 3G services.

On trends that will shape 2012
Rise in Video Content Consumption – Technology will give rise to possibilities of co-creation and collaboration and we will see a rise of a new form of promotion in the music video space

Brands become Media - Social Media will continue to grow. Various Platforms have made it easier and more affordable than ever for brands to create and distribute their own content, thereby becoming media companies in their own right. Brands are investing to create content

Connected Devices/Cheaper Tablets

Music on Cloud/ Social Music – Music consumption will increase on digital platforms with social media sites emerging as the favoured medium of labels and independent musicians to launch albums and create a buzz. Newer delivery formats of digital music content that make it attractive for consumers to first sample music and then pay for it are developing. These are emerging as formidable alternatives to pirated music.

Rise in App Economy - Roll out of HTML5

The broadband policy and also the new telecom policy are keenly anticipated as they will have a significant impact on the adoption of consumer services for the next 400 million online consumers in the coming four years.


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