How digitization will redefine the media and entertainment industry in 2016

It’s a revolution unlike any. This generation has been fortunate to witness a sweeping change in the way media and entertainment is consumed. “Digitization has already made a huge impact on the M&E Sector. The emergence of mobile, and convergence of Internet have redefined the sector,” says Sayed Peerzade, group CIO, Reliance Entertainment Group.

A few years ago, newspapers were the sole informers of the happenings around the world. But that job has now been borrowed by Twitter, Facebook and other social media sites. So much so that sometimes it’s the discussion on these sites around a news piece that people read before actually getting to know the news. “I think the speed to publication is clearly important. Daily newspapers can’t keep up with breaking news in digital media. The balance between immediacy and content is something that publishers need to find. Posts on Facebook tend to be the headlines, people don’t wait for newspapers anymore to get their daily dose of news,” says Colin Bodell, EVP and CIO, Time Inc.

According to IBEF (India Brand Equity Foundation), digital advertising has been the fastest growing segment with an annual growth rate of 44.5 percent.

That’s something that was unimaginable at a time when radio, TV and newspapers ruled the roost. The Internet age has transformed the media and entertainment sector drastically. It has given rise to what is coming to be known as the second screen phenomenon. Simply put, if you use a laptop, smartphone or tablet while watching TV or during commercial breaks, then you are a second screen user. “You’ve got to have a presence on the second screen. You can’t let go of that audience. You have to understand that mobile has redefined reach. We used to say it’s hard to reach rural folk but even my cook and maid are using words like ‘online’. The new generation is getting exposed to a lot of these things. You have to be where they are,” says Ritu Madbhavi, SVP-IT, FCB Ulka.

About 65 percent of people are surfing the Web while watching TV, according to the Realtime Report, a website that tracks social, mobile and Web trends. According to Deloitte, more than 90 percent of millennials (those aged 14 to 30) are typically engaged in four different activities when in front of the television.

This is a challenge and an opportunity for advertisers. The challenge is that they have to attract the attention of a distracted viewer. According to Realtime Report, TV ad awareness decreases 58 percent with second screen use.

Over 90 percent of millennials are typically engaged in four different activities when in front of the television. Source: Deloitte

And that’s the opportunity. Advertisers have a chance to convert second screen users to potential customers. The Realtime Report suggests that people who see advertising in synchronization have a 60 percent higher click through rate on digital ads.

If marketers can capitalize on that, it will generate additional digital revenue for them. And at the same time they will be playing to the crowd: Giving the audience exactly what they are looking for.

TV ad awareness decreases 58 percent with second screen use. Source: Realtime Report

And the audience is getting younger. They want content that’s on-demand, shareable and accessible from anywhere. That’s why, despite touching 2.5 million copies per day, Malayala Manorama knows that it can’t stick to print forever.

“The younger generation will move to digital. Not many people will read newspapers. Today, most people depend on WhatsApp and Facebook for news. So we have to look for new business models around them. People want instant news, wherever they are. As business houses, we have to gear up for these changes in 2016,” says V.V. Jacob, DGM-systems, Malayala Manorama.

That means companies like Malayala Manorama now need to cater to an audience that feeds off social media and mobile. In order to do that they need to employ the services of analytics and cloud computing.