Why is Video Content the Next Big Thing in India? The Present and The Future of Online Video Content

Posted on Posted in #Trends

350 million smartphones by 2017 is what reports suggest and predict for India. Along with that the Digital Media Industry is expected to become an INR 200 billion industry by 2020, which will be because of the increase in digital ad spend by 23-28% in the coming years. This not only points out the amazing potential in online content space, it is also an indicator of the fact that content is going to grow by leaps and bounds in the coming days.

While we all have witnessed the rise of video content in India, in the last few months, with infusion of money from Tiger Global into online content creators TVF (The Viral Fever) and with commercial appeal of AIB (All India Bakhchod), these 2 major players have largely shifted focus towards video content among Indian youngsters, and we have seen a sudden surge in online video viewership in the country.

However, as TVF recently started creating web shows lasting for 40-50 minutes, very evidently the user interest dwindled. The average viewing time for Indians on YouTube has largely been in the range of 10-20 minutes or less than that, as 62% online viewers prefer short form content in videos. This creates an interesting divide, as with the popularity of channels such as TVF, AIB and the likes of Star and Eros jumping on the wagon, it proves that online story-telling can be optimized to a large extent to maintain user attention.

Another very interesting thing that has been observed in the patterns of online viewing of Indian audience is that while 70-75% viewership has been from smartphones, most of the viewers (more than 56%) have watched online video content while commuting (as per popular surveys)! This is coupled with the fact that over 65% of the video viewing has been carried out using mobile network / data. This shows the significant difference between India and other developed nations where the larger access is through Wi-Fi. This is not just because of the fewer Wi-Fi zones in India, it also shows the increasing use of smartphones by Indians, which makes us the second largest market of YouTube!

There are over 54 million video viewers in India which has grown by over 70% from last few years. This brings me to the future of video content. While we all are aware of the fact that the online video consumption is going to increase and there is still an immense opportunity in the market for video content creators, it is also to be kept in mind that an overcrowded space always leads to poor quality of content.

The fact to be considered here is while 2013 had only around 30% rural consumers of content, 2020 is going to witness around 50-55% of the content consumption coming from rural areas.

This definitely shows a gap and a space which can be considered by content creators across the country. Also, the earnings of the urban population are going to increase and in tandem the paying capacity is going to increase as well.

While the earning population is going to grow to 50-60% by 2020, the mobile wallet transactions are going to grow by 60x. This can be taken as a good index of the fact that the scope of subscription models might increase as Indians might not mind to pay a few bucks for good quality, real time content.

The opportunities are immense and there is a completely unknown and unexplored sea of possibilities in the online content space. All that the new entrants need to think is more global, bigger and on a macro level. Think Big, Start Small shall be the key to the growth of digital media!

Originally published by Pawas Jain on LinkedIn Pulse


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