Future of Video India (10 September 2020)

Tarun: It has been a great year. When we completed two years this February, we were celebrating our success and looking ahead to continue building India’s entertainment super-app. Since then, we have moved ahead on our path of continuing to lead with innovations that deliver extraordinary entertainment experiences powered by content, technology and data. We persisted in our efforts to create an ideal user ecosystem encompassing devices, data, content, and user experience. We have been extremely successful in reaching out to a large premium mass consumer base by virtue of our User Interface (UI) and User Experience (UX) supporting 12 languages.

Building on this strong foundation over the next decade, I see an increased focus on hyper-personalisation to create an experience that makes each consumer’s app unique with customised UI and UX in your language, personalised recommendations and more, down to the Content Delivery Network recognising your device environment – slow 3G or fast 4G, and delivering the kind of video that can be played on your particular phone.

Automation will play a major role. We have made significant investments in technology and will continue to do so. While most of the app is today curated through Artificial Intelligence (AI) and Machine Learning (ML), the next few years should see this going to the next level with content packaging on the fly, personalised packs, and more.

We are preparing for the advent of 5G, which promises to be a game-changer enabling delivery of immersive content like never before. This would give a major fillip to the element of content gamification that we have introduced on our platform with ZEE5 Super Family, that lets our consumers play along in a fantasy league version of our fiction shows! Live gamification will take consumer affinity to shows and characters to another level. The coming decade beckons and as Sherlock Holmes would say, ‘The game is afoot!’

Tarun: We have been following a robust AVoD (Advertising Video-on-Demand) and SVoD (Subscription Video-on-Demand) strategy since the launch with big investments on the AVoD side in building the ad suite. However, between the two, we have been focusing on different offerings. AVOD would have more digital video ideas while SVOD would offer more premium use cases such as education, direct-to-digital movies, original content, short videos, aggregated news platforms, live news and live events. For AVOD, we are also building a self-serve bidding model where advertisers can book their own advertising slots, bid for advertising slots with pricing on a bidding model, and optimise the advertisement themselves democratising decision making on all levels.

India as a market has demand for both AVoD and SVoD and our aim is to build a great base of recurring consumers for both models. Nevertheless, we have been seeing significant growth in subscription revenues with a rise in viewing hours and subscription through direct subscribers, bundled subscribers through telecom partnerships. Our AVoD platform has free consumers who come in for the catch up TV on the platform, but we have been seeing stagnation in the linear TV consumer numbers. On the other hand, our AVOD to SVOD translation is increasing and about 10% of our base on AVOD converts onto SVOD. In addition, our investments on building platforms like connected devices and living room devices has been reaping dividends and today the ZEE5 app is installed in all smart TVs.

Tarun: At present, content does form the bulk of our investment, followed by technology and customer acquisition. However, this is because we are in the early stages of our growth. Going forward, I see both content and technology being critical for a competitive advantage. While content is what will attract the consumer, technology is critical for the consumer experience. This is evident in our approach to deliver a great amalgamation of content and technology at the segment of ONE that brings our USP alive. We believe that UX needs to be paired with strong content to give the consumer an experience that he will treasure and want to return to repeatedly. Personalization, ease of navigation will need to come together with great content to give consumers an engaging experience. Consumers today have high expectations both from content and technology and we need to give them the best in both for a sustainable competitive advantage.

Tarun: COVID-19 has accelerated adoption of all things digital and this is visible in the increased viewership of OTT platforms. We have seen an increase in the number of premium users. This will continue in the coming year. We will see consumers looking for different kinds of content on different devices with content becoming device agnostic. Smart TVs will see a rise in demand, as many consumers have gotten accustomed to access their favorite content on something other than their smartphone. We will see an increase in the use of AI and Big Data for hyper-personalizing the consumer experience and targeting advertisements. While content will remain king, the technology that makes this content accessible and visible to the consumer will also gain in importance. We also see a resurgence in regional content as well as an increase in initiatives to increase consumer engagement on OTT platforms.

Manish: India is an important market for Facebook and we have been making deep and thoughtful investments in people, technology and partnerships in the country. At the core of it is our focus on advancing India’s social and economic growth while creating meaningful impact; keeping our community safe, and driving innovation.

As more people around the world practice social distancing in the wake of COVID-19, we’ve seen people use our apps more than ever. The pandemic has accelerated broader technological shifts. Consumers and businesses are rapidly adapting to doing everything online. We especially saw an uptick in the number of people who watched live videos on Facebook. There are now more than 800 million daily active users engaging with live streams across Facebook and Instagram for workout classes, concerts, faith services, and more. Content creators and groups of all hues – from digital-first creators, public figures, self help communities and celebs to publishers and media companies have taken to the platform to innovate and devise interesting ways in order to engage and entertain their community.

Economic disruption as a result of Covid-19 has been very rampant and most businesses large or small are pivoting towards digital for connecting with their consumers and growth and we believe we have a material role to play in the revival and success of small businesses.

Manish: Our video strategy for India is truly reflective of the width of consumer tastes in the country.  We have invested in Movies, Music and Cricket to drive engagement and give our community what they want. We work with creators, publishers and media partners to showcase and enable content that is most relevant to our community.

At Facebook, we provide an active viewing experience, where the viewer is not only watching a show, but the show also sparks interactions and conversations with friends, other fans, and the community around the content. When one watches a video on Facebook Watch, our dedicated place for videos, they have the opportunity to comment, like, share groups messages, use reactions and polls, and even hold Watch Parties; making the experience interactive and personalised. Over the past few months, culture has gone virtual and with more and more people accessing our platforms, we will continue to explore ways to provide video content that is engaging and meaningful for our consumers.

Manish: Our focus in India with Watch is reflective of the diverse consumer tastes in the country- ranging from cricket to cinema, from creators and cultural moments to current affairs. We have strategically invested in culturally relevant, of-the-moment videos across sports, entertainment, news and lifestyle in the country with partnerships with leading players in these domains including ICC, Filmfare Awards, IIFA Awards and even leading vernacular content producers. We’ve also been working hand-in-hand with our partners in the music industry including players like T-Series, Zee Music, Yash Raj Films, Saregama and IPRS amongst others to explore opportunities to bring music into all the ways people are sharing and connecting on our platforms. More recently, we introduced Music Videos on Facebook Watch in India enabling people to view their favourite music videos and come together through music. 

We collaborate with media organizations, public figures and influencers to ensure high quality content which drives measurable business results through reach, engaging audiences, and providing innovative content experiences.

Manish: India is at an inflection point – more than 500 million people have come online in India in the last 5 years, yet nearly 50% of India’s population is yet to be connected to the internet; leaving a huge untapped base for digitization. 

COVID-19 has accelerated the relevance of the digital medium in an unparalleled way. Be it for education and healthcare or for garnering information or seeking entertainment – immersive mobile experiences have enabled access and connectedness despite the physical constraints. 

Facebook’s family of apps are playing an even more critical role in the lives of people during these challenging times as people are leveraging our platforms more than ever to connect with friends and family.  We are also working with both small and large businesses to craft solutions that enable them to ensure business continuity and unlock growth in these times. We believe that we have a huge canvas for creating impact here in India and will continue to explore ways to contribute to the social and economic transformation of the country.

Manish:

• La Liga on Facebook Watch Live… Real Madrid!
• The Test on Prime Video
• Fauda and Suits on Netflix