“Media companies should reinvent themselves on the lines of the primary content type they wish to carry: Video, Audio, Text, and Experiences.”
~ Neeraj Sharma, Media Industry Lead for APAC at Accenture

Media and Entertainment sector is in a flux. With the impending merger of Jio and Disney and the disrupted merger of Zee and Sony, there is an existential threat that looms over the industry. Plagued with low subscription prices, a massive supply of content and an extremely finicky consumer, the already red bottom line is threatening solidify its presence for a lot longer on most balance sheets. Most traditional content creators are figuring out the new future even as they struggle to survive in the present.

Accenture’s report titled “Minutes, Money and Moments in M&E: India A comparative analysis to understand “How Indians inform & entertain themselves” Yesterday (2016), Today (2023) and Tomorrow (2030)” reveals not just the extent of the shift in consumption in the last 7 years (from 2016 to 2023) but also attempts to predict the future of content consumption to provide a roadmap for the Indian M&E industry. The report analyses the types of content that will resonate in the future and how the industry players could position themselves to extend the time spent on content by the consumers, monetise those minutes and create additional moments by leveraging technology.

CXO Today’s publisher and content strategist, L Subramanyan and Raj Narayan, buttonholed Neeraj Sharma – Media Industry Lead for APAC at Accenture and the advisor in the study – for a detailed conversation on how Accenture is looking at the Indian M&E sector and what are those key moments of truth emerging in the industry. CXO Today also discussed the emerging role of technology, Gen AI, and the role of independent content creators in these turbulent times and how to move away from traditional revenue models to a more futuristic model in an evolving world. Excerpts from the conversation:

CXOToday: Why do you believe media companies should move away from traditional categories like TV, radio, and print?

Neeraj Sharma: In today’s digital age, the lines between traditional media categories are increasingly irrelevant. Consumers don’t think in terms of specific media forms anymore—they simply want to engage with content. Whether it’s video, audio, text, or experiential content, the medium is secondary to the quality and relevance of the material. Therefore, Media companies should also stop limiting themselves by defining themselves along the lines of Access Medium and should rather reinvent themselves on the lines of the primary content type they wish to carry: Video, Audio, Text, and Experiences.

Thereafter, focus on offering engaging, in-depth storytelling that resonated with listeners. The focus on content over medium allows traditional media companies to leverage their strengths, providing high-quality, unique content that stands out amidst digital fatigue.

CXOToday: Can you explain your approach to analyzing profit pools in the media industry?

Sharma: Initially, we aimed to analyze the media industry through a profit pool lens—essentially, where the money flows and how it’s distributed across segments. However, due to the diversity of media products, this approach proved complex. We shifted our focus to understanding the time people spend on different platforms and how this time correlates with revenue generation. This approach provided clearer insights into media performance and revenue opportunities. This is the Minutes, Money, and Moments approach.

CXOToday: Can you elaborate on the concept of ‘minutes, money, and moments’?

Sharma: Minutes is how much time consumers spend on different combinations of content types and access media. Money is how much revenue each combination generates. ‘Moments’ gives us the qualitative aspects of content consumption.

For example, watching a movie on a mobile phone during a commute is a vastly different experience from watching the same movie on a big screen at home with family. The former is a solitary, casual moment, while the latter is a more immersive, shared experience. Understanding these moments helps in tailoring content and monetization strategies effectively.

CXOToday: How does the intensity of engagement on different media platforms impact monetization?

Sharma: The intensity of engagement is crucial for monetization. For instance, despite the shrinking base of print media consumers, those who continue to read newspapers are highly focused, committed to the medium, and more importantly belong to the more attractive audience cohorts due to their being more affluent and decision-makers. This deep level of engagement coupled with the attractiveness of the cohort makes print a valuable medium for advertisers, who can rely on the reader’s undivided attention, provided the publisher evolves the engagement beyond serving core content only.

Even though the audience for traditional media may be decreasing, the intense connection these consumers have with the content makes it a powerful tool for monetization. 

This is why different platforms command different time-premiums.

CXOToday: How does the concept of “time premium” relate to media consumption?

Sharma: Experiences like concerts command a high time premium due to the intensity of engagement. Although image and text media currently enjoy a high time premium, we expect this to decrease as their reach diminishes, while immersive experiences will see an increase due to their engaging nature.

Time premium, calculated by dividing money by minutes, shows the value generated by the time spent on different types of media. 

CXOToday: How does the audio segment compare in terms of time premium?

Sharma:  Audio generally has a lower time premium because it’s often consumed in the background, like while driving. However, audio is growing rapidly, particularly in more engaged settings like podcasts or educational content, and therefore will start commanding a higher time-premium than it does today.

CXOToday: Could you provide examples of how content consumption varies by moment?

Sharma: Absolutely. The context in which content is consumed drastically changes the experience and engagement level. Watching a Netflix movie alone on a phone during a commute is very different from watching it on a large screen with friends or family at home. Another example is live sports. The communal experience of watching a cricket match at home with friends or in a stadium adds depth and meaning to the content.

During the pandemic, we saw a rise in shared viewing experiences on connected TVs, which increased engagement and altered content production and marketing strategies.

CXOToday: How are new formats and devices, like smart speakers, changing the way people interact with content?

Sharma: New formats and devices are revolutionizing content consumption. For example, smart speakers with AI capabilities make accessing information and entertainment more seamless. Instead of manually searching for news or music, you can ask your smart speaker, or an LLM app on your phone, for a quick update, which not only saves time but also enhances the user experience by making content consumption more intuitive.

CXOToday: Generative AI is becoming mainstream. How do you see its role in the media industry?

Sharma: Generative AI is becoming a mainstream tool in the media industry, significantly impacting productivity and time required for content creation. Artists and creators use AI to generate music and videos, and enterprises leverage it to enhance both front-end and back-end processes.

We’ve observed the mainstreamification of generative AI; it’s no longer just a novelty but an integral part of how content is produced and consumed. 

Companies are using AI to create personalized content experiences tailored to user preferences, which will continue to grow in importance.

CXOToday: What are your thoughts on the future of content consumption with the emergence of devices like Apple Vision Pro?

Sharma: The future of content consumption is poised for a significant shift, especially with devices like Apple Vision Pro. By 2030, I expect a significant portion of solo content consumption to take place in virtual environments rather than on physical screens. However, challenges like high costs and device weight remain, but these will likely be resolved over time. 

CXOToday: How has smartphone penetration influenced media consumption trends, and what do you predict for the future?

Sharma: Smartphone penetration from 2016 to 2023 drove significant growth in media consumption, particularly on mobile. However, this growth has plateaued. Economic constraints mean smartphone sales may not keep pace with population growth. 

As smartphone penetration levels off, media companies will need to explore new avenues for growth beyond mobile content consumption.

CXOToday: Will video continue to be the primary avenue for monetization in the future?

Sharma: Video is currently seen as the prime monetization avenue across digital platforms, but the trend is not sustainable. The market is oversaturated with video content, and as the quality gap between user-generated and studio-produced content closes, the premium advertisers place on video will likely decrease.

We’ve seen that 60% of users find user-generated content just as exciting as studio-produced content, which indicates a shift in how video content is valued. This oversupply will likely lead to a market adjustment, reducing the premium currently paid for video content.

CXOToday: How will the audience share between traditional TV and connected TV (CTV) evolve in the future?

Sharma: We expect traditional TV and CTV combined to maintain around a 33% audience share in the future, but a massive shift from traditional TV to CTV will take place. A significant portion of the population, particularly non-affluent consumers, will continue to watch traditional TV, as they may not have the financial resources to pay for subscription-based services.

CXOToday: Will physical experiences still dominate over virtual experiences by 2030?

Sharma: Yes, physical experiences will continue to dominate over virtual ones by 2030, despite advancements in technology. The simplicity and immediacy of engaging with content without the need for additional devices remain crucial factors in how people choose to consume media. 

While virtual experiences will grow, they won’t replace the need or desire for physical experiences.

CXOToday: What challenges do traditional media face in transitioning to digital?

Sharma: One of the biggest challenges is the drop in average revenue per user (ARPU) when transitioning to digital. Every time a service migrates from Analog to Digital, there is a drop in ARPU. Old value is destroyed. New value is created, but that new value is often captured by new entrants rather than existing players. For example, we saw that in telecom, when Jio entered the Indian market, ARPU dropped significantly, and Jio, the new entrant, was the big gainer. Similar patterns are seen in media, where new digital players capture the value that traditional media houses lose during the transition.

CXOToday: Will desktop devices survive in the future?

Sharma: Yes, desktops and laptops will continue to survive because certain heavier workloads require larger screens and more powerful computers. Tablets haven’t replaced desktops because OEMs keep their device ecosystems separate to maintain distinct revenue streams. This separation ensures that desktops remain relevant for tasks that smaller devices can’t handle.

CXOToday: Will changes in device topography influence consumer behavior in content consumption? For example, will we see the emergence of pay-per-view offerings or sachet offerings?

Sharma: In the adoption of pay-per-view, significant barriers such as payment friction and consumer hesitation remain. Every time you are asked to pay for a piece of content, you start deciding whether that piece of content is worth that money or not. This is cognitive overload, which invariably leads to users not paying per view, and rather buying monthly or annual subscriptions. While device ecosystem evolution might shift the landscape slightly, the fundamental challenges of consumer behavior and payment decisions persist.

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