Media and Entertainment Industry: The changing landscape

The world is changing - the world of media and entertainment. With technology the traditional landscape has undergone a complete revamp.

Innovations in technology has blurred the boundaries across industries. Leaders from ancillary and even unconnected industries have bulldozed their way into this segment. Looking at the value chain, there are three main segments. Content producers, broadcasters and distributors.

Let’s look at the dynamics of each segment –

Producers are the creative institutions such as Balaji Telefilms, etc. Which produce and develop . For the purpose of this article, let’s focus on the next 2.

Distribution comprises of MSOs such as Hathway, Den (a B2B biz) which engage LCOs to reach the end subscribers.

In India, with the advent of DTH and OTT (Over The Top or streaming) players such as Box TV, Bigflix, this segment will soon become a B2C business.

The major infiltration has happened here from other B2C businesses. Amazon through online B2C portal, Netflix through DVD business, Google through Social networking (Youtube, Android), Apple through well, all its products, etc. have all come riding in on robust tech platforms and a strong suite of loyal customer base and can provide content as an additional service. It’s only a matter of time before FB joins the bandwagon. There are huge cross selling opportunities for these players and with increase in broadband penetration and through network speed improvements via 4G players, etc. will only accelerate this infiltration.

That’s not the whole story though.

 The distributors need content to sell. This content is in fact provided by the broadcasters such as Zee TV, Sun TV, etc. who are aggregators of various content programming and are recognized brands.

Couple of major shifts have happened in this industry – 

1. Digitization
2. Rise of on-demand programming

Far higher revenues will now be realizable compared to earlier i.e. the revenues that were earlier not declared by LCOs. Thus ad revenues which forms about 65% for broadcasters will gradually become ~50% with the share of subscriber revenues going up proportionately. Secondly, through rise of on-demand programming, ARPU has increased as subscribers may pay higher prices to skip unnecessary ads lowering ad revenues further. Subscribers have thus become much more important for broadcasters.

The challenge is that Broadcasters which were typically B2B businesses dealing with either distributors or Advertizers have to deal with consumers more directly now.

This means that now they have to reorganize and become more nimble, make faster decisions, hire people or teams that understand consumer behaviour and develop analytics capabilities among other things. This is aided by better ability to get registered subscriber information because of digitization.

Since technology has changed the nature of the industry to more consumer facing, the power has shifted to tech players. These new entrants are not stopping at distribution. Netflix, through better understanding of consumer behaviour has been able to commission blockbuster shows such as House of Cards that suits its subscriber base’s taste.

Thus the only way for broadcasters to defend their position is to attack by going down the value chain. They should invest in evolving technologies (organic will be too time consuming), launch OTT services like HBO Go, etc. and investigate other means of engagement directly with consumers such as Mobile apps, games, etc.

There are exciting times ahead for the industry and the next few years may radically change the landscape

Grey and black and white (draft)

People are by nature fond of black and white. Grey makes us uncomfortable.
We are very happy when we can characterize someone as a "Good" person or a "Bad" person. It's hard for us to say that a person is a cruel humbug yet is also nice and caring.
It is also part of our natural emotional defense or coping mechanism that probably makes us think this way.
It helps us overcome a breakup by vilifying or even dehumanizing the erstwhile significant other rather than thinking oh - he/she didn't do me justice but was such a nice person otherwise. I guess one dimensional thinking has its uses.
I have somehow never been a fan of the black and white. Not that it came naturally but over time that is who I've become. Not that that's very helpful but I do know that I'd rather let a guilty man walk free than hang an innocent one.
This line of human behaviour may be more prevalent than we realize. I think the root of the problem is that we hate uncertainty. We love clear outcomes. One of the leading sources of stress is uncertainty as proven in numerous research reports. Say professional uncertainty - a company not providing a defined career path may lead to many sleepless nights for the new joinee in question.
When the consulting JDs state that a key criteria of hiring is - comfort in an ambiguous environment - I think what they are looking for is actually someone who is so uncomfortable with ambiguity that he/she is willing to do everything in order to provide structure to chaos.
Even though very few of us admit it, I think that we also like to have a world with exams than not. Exams are so black and white. You either know an answer or you don't. It's has a clear timeline (keeping aside surprise tests), clear outcome - you know your rank clearly and is easy to plan for. In our careers, we aren't always clear when to work harder - during appraisal time or during the beginning of the FY or during a high priority project or may be all through. We don't know which behaviour will lead to better rating et cetera.
If anything, the exams are a prototype or a simplified model of career or life in general.
Exams are black nad white.
Unfortunately (or fortunately) life is grey.

Footsteps

Footsteps

The sound of approaching footsteps.
Expectancy and trepidation.
A pregnant feeling - hope.
A desire - a  vision.
A smile.
Learning to discern.
A different sound - a broken heel.
A new style.
Learning to cope.
Footsteps.

Is someone else responsible for your happiness? (incomplete)

I came across this nice article sometime back.
The author asks a very simple question: He asked me: "Why do you think that another person is responsible for your happiness?"


The topic of the article was general causes of depression, getting over personal grief, etc.
The question though very basic is very pertinent because at least I have never thought about things like that.


Whenever I have had a fight with a friend, whenever someone close has passed away,, whenever something has gone wrong I have time and again gone back and somehow blamed myself. The point is not who was at fault. The point is whether some object, some person is really the cause of your true happiness.


While our friends do give us happiness, I believe that true happiness can come only form a content mind. Someone not confident in his own shoes, will always look externally for happiness. Tagore writes: "chokher aloy dekhechilem chokher bahire. Ontore aj dekhbo jokhon alok nahi re". It means that "I saw the world using my inner light. But cannot see inside myself, because there's only darkness"


The key, the author argues is 2-fold.
1. An elevated sense of self-worth and 
2. A personal purpose in life


I am a big believer in self confidence for I know the power of positive thinking. However, as Shakespeare once said, " I can easier teach twenty what were good to be done than be one of the twenty to follow mine own teaching". 
To keep that confidence and belief going in hard times is tough even for the brave hearted.

the shrinking ocean

When we are teenagers, our life seems like an ocean of possibilities - the different permutations and combinations that we can make of our lives. As we grow older, some of these combinations are annulled and the ocean shrinks to a sea or a river. A mature middle aged man may have just a pond of few choices left. A elderly man has but a pool, if at all.

What is your package?

Ever since placement, I have heard this question so many times that I feel like smacking the mouth that utters these words. Whoever I meet at ISB or outside asks this question as if it's my duty to inform the person about this most private thing. Whatever happened to respecting privacy?

Following is a conversation I had with an old acquaintance recently over gtalk.

S: hey hi buddy

hru doing these days ..?

me: im fine

how are you

long time

S: ye pretty long time ..

doing good ..

so hows all going at your end ..?

MBA over ..?

me: ya

just graduated

S: cool yaar congrats ..!

placed @ ..?

me: hv a cpl of offers

with xx and yyy

S:
congrats yaar ..!

:)

hey can u tell me wht ws ur gmat score ..?

me: 740

S: hmm ...

If u dont mind ...cud u tell me ur package for yyy..?

me: it's good enough for me mate

S: Ya but it was good even before right

me: Ya well it takes care of my needs even better now

S: Ya but exactly how much?

P: I'll get by. Enough to take care of my needs.

S: haha :) ok

People just don't get the hint that someone values privacy.
Another time an ISB classmate asked similar questions. So I said it's a private matter dude. Did I ask yours? So the reply came, "just because you didn't ask me how would I know I didn't ask anybody else? And anyway, I just want to benchmark my salary". me: "!".

Today I got this email...(to set the context, I had forwarded a job posting I got from ISB alum group to my undergrad (Jadavpur University) alum group.

Hi Priyom,

Though I'm not intersted in the job you mentioned but from your signature I came to know you are MBA from ISB 2010 batch. Would you please tell where have you been placed from campus with what package. And what's highest, lowest, average package of ISB this year domestic as well as international.
Regards,
P*******

I got so pi**ed off at this that I felt like giving a mouthful to this person whom I didn't even know.
I eventually replied:

P*******,

I had an offer with ** Corporate Strategy from the campus.
Compensation details are a private and confidential matter and I won't provide that info to you.
The ISB salary and other details are available on the ISB site www.isb.edu (the current year's will be available in a few months).

Now I've decided that I'll be brutally frank and tell people to f*** off if anyone asks my salary. And if you do want to ask, wrap your question in a garb of propriety. For instance, today someone asked me, "Could you tell me what percentage hike you got over your last CTC"? Though I replied "substantial" but at least I haven't lost respect for the person asking the above question.

Anyway, this would be be a good time to mention that I decided to rejoin my old firm. They are opening a new strategy consulting practice and I'd be in charge of the entire east India region. In fact I'm the first and only employee so far in this part of the country. My reporting manager is the SBU head. Interesting days ahead.

Doing well at a B-school: Academics

This is the first part of a series of Doing well at a B-school articles I plan to write. Today I'd share my experiences and insights on what I felt may work academically at ISB or in any B-school. Halfway through the year I realized my follies and felt the need for these precious tidbits from seniors which are difficult to get in a 1-year B-school. A disclaimer before I begin: these are just my personal thoughts. Please don't come back to me if any of these strategies don't work.

Exams: The so called easier subjects such as for Strategy of OB are actually tougher to score at because the TAs have specific guidelines on points in the answers. So you have to really follow the class well to understand professor's points of view. The hard core fin subjects have very high spread so be sure to practice practice and practice sample questions. After the first 2 terms I just couldn't get myself to study the day before the exams coz of fatigue or burnout or whatever. This is a disaster. I changed this during the last few terms to great effect. So make the most of the day before exams. To set expectations, a general rule of thumb is that about 8 marks above average guarantee an A (at least at ISB).

Assignments: Well this is really tricky and there's no right answer. Few electives in fact have only assignments that decide the grade. So just work hard in them I guess. For core terms, they generally don't matter so for subjects which have >80% weightage on exams you are better of ignoring assignments (where spread is very low) and concentrating on exams.

Projects:For most projects, using some fancy frameworks to analyze the issues really help. Also try to bring in concepts taught in class. Very importantly, if the project is in slide/PPT form, and you've to submit both hard and soft copies, you must put in some animations irrespective of guidelines. Sometimes presence (or absence) of animation (whatever quality) makes the difference.

Class Participation (CP): The much abused part of B-school life, CP hardly matters during core terms in the overall scheme of things. In electives, CP does make a whole lot of difference due to very high spread. But a word of caution. Please don't blabber or ramble if you have nothing substantive to say. I have seen numerous people who constantly jabber get very low CP marks wherease a few well thought out points win very high marks. And, it is OK not to speak in a few classes, really!

These were just few things that I felt I could have benefited from if I knew them from the start. If you are just starting out on a B-school, do remember that grades follow learning and learning follows enjoyment. So don't forget the enjoy the b-school experience in class or outside.

Hole Hearted

"Life's ambition occupies my time
Priorities confuse the mind
Happiness one step behind
This inner peace Ive yet to find

Rivers flow into the sea
Yet even the sea is not so full of me
If Im not blind why cant I see
That a circle cant fit
Where a square should be

Theres a hole in my heart
That can only be filled by you
And this hole in my heart
Cant be filled with the things I do

Hole hearted
Hole hearted

This heart of stone is where I hide
These feet of clay kept warm inside
Day by day less satisfied
Not fade away before I die

Rivers flow into the sea
Yet even the sea is not so full of me
If Im not blind why cant I see
That a circle cant fit
Where a square should be

Theres a hole in my heart
That can only be filled by you
And this hole in my heart
Cant be filled with the things I do
Theres a hole in my heart
That can only be filled by you
And this hole in my heart
Cant be filled with the things I do

Hole hearted
Hole hearted
Hole hearted
Hole hearted"
-Extreme

The call

Yes…hello…who’s this? Hello hello…

Katrina Kaif! U what? U wanna go out on a date with me?
Only if I SMS at this number…at Rs 10 a minute! Hmm but u see I’m in the middle of a meeting! Well hello hello…

Could you believe it! It was a call from Katrina Kaif! Wonder how she got my number!
It's been just a week since I returned from US yet I have been getting calls from Rahul Dravid, Kareena Kapur, Aishwariya and now Katrina. I wonder why?? Maybe I have suddenly become rich and famous! Well not rich…but famous ? No not even that…then?
Though I am not rich, many Indians are. Recession or no recession, India is one of the fastest growing economies of the world. Suddenly the great Indian middle class: you and me are in great demand. Because we, as consumers have great power in our hands: and pockets and purses. The octopus of advertising industry has spread it’s tentacles across various channels: television, mobile, internet or radio. Some ads are truly fascinating and compelling

Picture this: A young boy is having lunch in a small hut, with the door open. Suddenly a football bounces off the floor and strikes him. He looks around, and finds another boy of his age standing afar. He comes out of his house. The area is desolate, deserted. The other boy is standing at the other side of a ubiquitous double fence with a no-man’s land in between. The other boy coaxes him to kick the ball. This boy looks around shyly. There’s noone anywhere. With all his strength he kicks the ball to the other side of the fence. The 2 boys smile at each other. They want to play together…and they both join each other in the no man’s land. And start playing. Then the tagline follows: There would be no boundaries in this world, if we could only talk to each other! Wao! What an ad for a Cellular Service Provider.

With such creative ads these companies compel us to buy their products. You know, sometimes I feel like a young princess! Yeah you heard it right: a young naïve princess being courted by the Prince Charmings of this world. Or like Miss Little Red Riding Hood. Riding out into the world without any apprehensions?
But is the sweet old lady at the doorstep really the Grandmother or the evil wolf who is just waiting for a chance to eat you up?
We have to be very careful what to believe.
All that glitters is not gold.
The tomb gilded in gold may just be worm infested inside.

In fact some critics say that Advertising is the science of arresting human intelligence long enough to get money from it.

Fact: Research has shown that some of the worst quality products spend most money on advertising.
Fact: The Advertising Standards Agency (ASA) in USA reports that in 2008, more than the number complaints about environmental claims grew more than four times compared to last year.
Fact: Suzuki, Shell, Toyota and many other renowned companies have been fined for misleading consumers on their environmental practices.
So how do we find our way in this big bad world of advertising and separate the wheat from the chaff? Let me tell you some ways in which you can counter the terror of the advertisers. Step 1, research the product before you buy something. Your best sources are your friends and colleagues. Find out whether any of them have used the product before and what they recommend.
2. Read blogs in the internet.
3. Find out the relative prices offered by different shops stocking the same product.
So research, talk to others and be “informed” before making a decision.
Don’t go by appearance alone.

And the next time you receive a phone call from Katrina Kaif, take a deep breath.
Relax. Enjoy your day in the sun. Look around. If your boss looks at you with questioning eyes, just say casually, Oh that? That was Katrina Kaif. She was calling about our date. An SMS for a date with Katrina: Rs 10. The look on your boss’s face: priceless!

Connected-Thinking

"Love is an exploding cigar we willingly smoke" - so said Lynda Barry. Love, the all consuming feeling that goes awry several times. But that doesn't stop us from searching for love, searching for friends and searching for that connection - to the world around us. But how do we connect to each other in today's hectic lives? People say that our lives are like an island. But if you look closely even in that analogy, you will find, that an island has trees and the roots of the trees grow deep beneath the surface, till the time they touch - they connect. So even in an island, life is connected.

The very computers and laptops that seem to isolate us form the rest of the world also help us stay in touch via the Social Networking sites.
Take Facebook for example. A social community website, it allows us to create a personal profile and list information about ourselves: our likes and dislikes, our interests, hobbies, pictures and even the name of our dog. God, that's a lot of information.

Social networks harness and channel this information. People can search for us or ask for our hand (in friendship or otherwise) based on shared interests - say a song we like or our favourite holiday destination or our pet.
I have lost count of how many long lost friends these sites helped me connect to. Recently an old school friend "scrapped" in Orkut: "Hey, good to get back in touch with you after all these years; I hope you have forgiven me for that episode in school!" Talk about forgiving, I had even forgotten about the whole incident! I still can't recall. I replied - "I believe in forgive and forget". But the point is, these sites are a fabulous way to you create a closer, more intimate network of friends and to make new friends


Linked In serves primarily as a professional networking site. It is an online network of more than 30 million experienced professionals from around the world, representing 150 industries - according to their site.
When we join, we can create a profile that summarizes your professional accomplishments. Our profile helps us to find and be found by former colleagues, clients and business contacts.
Our network consists of our connections, our connections’ connections, and the people they know, thus forming a huge professional network. In today's world, much more work gets done anyway through the informal horizontal networks than the formal rigid and hierarchical organizational networks.

Businesses realize the power of information dissemination through such informal networks and harness these networks to find potential clients, service providers, subject experts, and partners who come recommended. They recruit people having specific skill sets through these professional networks as well. Here and here are a couple of links to great McKinsey Quarterly articles on social networks. So Linked-In and other such sites give us a great chance to further our professional interests.

While life doesn't always give us a second chance, the internet does give us a Second Life® - a 3-D virtual world created by its residents. Quoting from the site itself:
"
• From the moment you enter the World you'll discover a vast digital continent, teeming with people, entertainment, experiences and opportunity. Once you've explored a bit, perhaps you'll find a perfect parcel of land to build your house or business.
• You'll also be surrounded by the Creations of your fellow Residents. Because Residents retain intellectual property rights in their digital creations, they can buy, sell and trade with other Residents.
• The Marketplace currently supports millions of US dollars in monthly transactions. This commerce is handled with the inworld unit of trade, the Linden™ dollar, which can be converted to US dollars at several thriving online Linden dollar exchanges. "

Many big businesses have a presence in Second life. They use it to host virtual job fairs, to sell actual goods through virtual shops (people can come in and browse the virtual items - they may choose to buy real items matching the virtual ones as well. Ex. Nike, Reebok, etc) and also for branding purposes. In my company, we are trying to use it as a substitute for teleconferences - being "face-to-face" with our colleagues from around the world (that too dressed in funky clothes) is a great feeling.

Another popular site, Twitter allows users to post answers to the question: "What are you doing at this moment?". The "followers" can keep themselves updated about these updates through various channels such as RSS feeds, SMS, emails and so on. Here's Obama's twitter link.

Skype, Myspace, bebo Hi5 are also similar sites that offer different value propositions.

While these sites promise to put us on the path to social bliss, they also bring with them the inherent risk of social embarrassment. Cyber-crime is increasingly on the rise and there is a very high risk of identity theft. Anybody can get access to our pictures and open a fake profile and post dubious messages. There is also the risk of someone getting access to our personal or professional confidential information. Moreover, these sites are so addictive, you can get glued to them and forget the real world. However, judicious use of these sites can certainly open a lot of doors for us. So the next time we have to face the music in real life we can choose instead, to open Facebook in 2nd life and be Linked-In to the world at large