In a fast moving world, the changes brought forth in the delivery systems like mobile and the Internet through disruptive technologies are encouraging niche media segments. Big media players had to be ready to adjust themselves to this change, said Pramath Sinha, CEO, ABP Group. He was speaking at the seventh annual The Indus Entrepreneurs Conference (TiEcon) Delhi 2006.
“Though the media and entertainment industry is one of the fastest growing and most happening industries, it is still a very small industry at around $10-$12 billion as compared to other industries. Even the biggest media player, Time Warner, is close to $100 billion in size. However, most Indian companies are growing at around 30-35 per cent and are very profitable. In fact, they are experiencing unprecedented growth in size, value creation and profitability,” Sinha said.
He pointed out three key trends in the sector. Firstly, consumers are now demanding customised content. They have to be provided content that they want and whenever they want. This is throwing a lot of opportunities as well as challenges. Now a media company can focus on content targeting a particular audience segment without going for the mass market.
Secondly, marketers are demanding more targeted advertisements and are aiming to reach the audience directly. This is a challenge in a highly segregated media market.
Thirdly, the changes brought forth in delivery systems like mobile and the Internet through disruptive technologies are encouraging niche channels, niche magazines and niche newspapers. Big media players had to be ready to adjust themselves to this change, said Sinha.
“The problem with such new disruptive technologies is that though the barriers of entry have reduced significantly, nobody is sure about the revenue model to be followed. Though it may be exciting times for consumers, many a times it could be frustrating for an entrepreneur,” Sinha pointed out.
Asked about m-commerce, Sinha said, “I don’t see a lot of commerce happening through mobile very soon. We use the mobile platform for interactive services. That’s a reality now and one can’t escape it.”