Digital surpassing TV as medium of choice for production houses

From big banner movies to popular shows, it’s digital all the way. Popular films and shows which traditionally premiered on television soon after their theatricals or prime time shows are now finding their way into the digital landscape as more consumers get hooked to smartphones.

For instance, Eros premiered blockbusters such as NH10 , Badlapur and Tanu Weds Manu on digital media much before they were telecast on TV.

Even though satellite rights are the main revenues grosser for production houses, more companies are choosing the digital media to capture a younger audience.

There’s also money to be made. As the digital medium draws more advertisers, monetisation will happen, say the companies.

According to a Goldman Sachs report, the total online ad spend in India is slated to cross $2.7 billion by 2020, which does portend well for production houses targeting that medium. ErosNow, the digital arm of Eros International, already hosts a large library of films as well as premium TV shows, music videos and audio tracks.

Said Jyoti Deshpande, Group CEO & MD, Eros International Plc: “We are poised to take advantage of the briskly growing broadband penetration and wider use of 4G technology to reach out to the potential audience offered by close to a billion mobile connections.

“As consumption patterns change globally, internet entertainment networks have begun to rapidly replace traditional, linear television.”

“Eros will have the first-mover advantage in digital as it reinvents itself from a film studio to a more consumer-facing content and digital company in the next phase of growth,” she added. Eros said it has over 19 million registered users.

Recently, Y Films, the ‘youth’ division of Yash Raj Films, premiered its multi-starrer series Man’s World on YouTube.

Sony Liv, the video-on-demand platform of Sony Pictures Network, also released its blockbusters like Aamir Khan-starrer PK and Lights Camera Kissey on digital. Said a company representative: “Audiences today consume content across screens. We are seeing significant traction for our content on mobile.”

Some TV shows deliver significant sampling to younger audiences and then tune-ins to TV, according to Sony Liv.

Asked if the digital medium attracts revenue, Uday Sodhi, Executive Vice-President and Head (Digital), MSM, is rather upbeat. “Monetisation in India is normally driven by advertiser support and growth in audiences,” he said.

“Some events and tent-poles are used to drive app downloads. Some interesting short-form content is used to offer samplings for TV shows, followed by tune-in for TV.”

According to a KPMG FICCI report, by 2017, India will cross 1 billion mobile subscribers. By then, internet users are expected to reach 500 million. Active smartphone users will cross over 382 million, of which over 70 per cent will be 3G/4G paying customers. The market for 3G and 4G in India is expected to grow 3.5 times from its current user base to over 247 million.

Not only are more and more Indians using smartphones, but they are also spending more time on them.

The KPMG FICCI report pointed out that Indians smartphone users spend an average of 3 hours 18 minutes daily on their mobiles, compared to 2 hours 8 minutes on TV.

Industry watchers also note that early digital premiering helps companies to curb piracy. Additionally, for low budget films with distribution issues, digital is the right platform.