The changing face of India — Part 1: Going Mobile
How ‘mobile-first’ is changing the Indian entertainment landscape
The internet has dramatically transformed the way we interact with the world. From its inception in 90s and the nostalgic phase of dial-up connections, the internet has come a long way in terms of speed, accessibility and the sheer number of devices accessing it.
For India, the internet revolution is still very much underway as more and more of the populace goes online. In a series of posts, we shall analyze the key internet trends which are likely to shape Indian businesses in 2018 and beyond. In this first part, we will discuss how ‘mobile first’ is changing the way Indians consume media and what it means for existing players.
By 2021, around 59% of the India’s population is expected to have internet access and over 2 billion devices are expected to be connected to the network.
Who needs a PC when you have a mobile?
In 2017, more than 79% of internet visitors came through mobile phones, 20% used desktops, and tablet users accounted for under 1%
Indians were relatively late to the internet party; 8 years ago internet access was largely limited to the urban middle and upper classes who had desktop at home and a smartphone data plan to supplement it. For everyone else it was internet cafes. Fast wireless internet and cheap phones have changed all that.
Most of India now accesses the internet on their phones and a large part of it is increasingly turning to it for fun.
The appeal is logical; smartphones lets one access entertainment of their choice at home, on a commute, and at work. Recognizing this trend, Over The Top (OTT) media players such as HotStar, Voot, and Amazon prime have set themselves up to exploit the potential in this market by offering everything from music, sports, movies, TV shows, to shows commissioned just for the platform.
Also read — The Invasion of Online Streaming Services
There are a number of evolving business models for the streaming providers such as advertisements, subscriptions, freemium packs, and sponsored revenue streams.
The evolving business models make it uncertain to point out the exact trajectory of the digital market in India. However, the increase in content quality and awareness of global trends suggest that the subscription model of business will lead the way forward. The variety of content, the exclusive content creating solely for the purpose of creating an unique selling proposition will be the key factors.
The casual desi gamer is now paying up
Gaming in India doesn’t get the recognition it deserves; the image of teenagers playing pirated games on the PC is outdated. Those teenagers have grown to become paying customers while mobile phones have expanded the appeal of casual games to a much broader audience.
The mobile gaming industry in India will be worth a billion dollars by 2021 with over 300 million gamers
In the early 2000s there were 5 major Indian gaming companies, that number is now over 250 as the number of gamers has exploded. Revenue streams have evolved as well. Game companies once loathed the Indian market as it was (and is) awash with piracy, that problem however, doesn't arise in mobile games.
You don’t need a paying customer as long as you can show ads to them instead
Companies now make games specifically designed for the Indian market, Nazara games for instance makes mobile games which have tie-ins with Indian movies and cartoons. It will soon become the first Indian gaming company to go IPO.
As online payment systems become more accessible, sale of in-game upgrades and paid versions will also boost revenue.
So whats next?
Mobile India certainly faces some challenges in spite of its steady growth; issues like low internet speed, unstable connections, low broadband penetration are some of the concerns which haunts the rural areas and even some tier 2 cities.
The other aspect is challenge in terms of tackling content piracy. Although stricter laws and enforcement are being implemented, content piracy is far from eradicated. A much more effective cyber laws aiming at mitigating the risk of personal data theft should be brought in place.
An interesting evolution to look out for is regional content and local languages, it may not be long before consumers of English content are a tiny minority. We shall address this particular factor in the next part of the series.
Minance is a private wealth management firm. To know how we can help with your investments, click here.
To read more insights on finance, business, and economics, click here.
