Indian consumers are consuming 190 mins of video per day per user: CII-BCG report

MUMBAI: The content hungry Indian consumers are consuming 190 minutes of video per day per user across platforms. The video consumption in India has been growing at 8% over the last five years.

These are the key findings of a report ‘One Consumer, Many Interactions’ by CII and Boston Consulting Group (BCG).

As per the report, there 30+ digital platforms in addition to an array of TV channels. An average consumer consumes 10-15 channels per day and 2-3 apps in any given month.

The overall media consumption growth in India continues to outpace global counterparts. At a 9% CAGR over 6 years, per capita consumption is growing at 2X the pace of the China and 9X that of the US. With absolute consumption being 2/3rd that of China and 1/3rd that of the US there is also ample headroom for growth to continue.

India is a multi-modal growth market which is relatively unique with digital consumption registering a faster growth, however, the traditional media particularly TV has also continued to grow. “We believe this coexistence and multi-modal growth will continue in the foreseeable future,” the report noted.

It also stated that the addition of the mobile as a “small screen” has pushed India to more than a trillion unique interactions with dramatically unique expressions. These choices play out in a more complex set of intersections across genres, formats, session lengths, and media. From catch-up to snacking and binge, digital media is adding multiple new textures to the existing range of media touchpoints, making the overall canvas richer and more complex.

Primetime is getting extended

The report pointed out that the notion of prime time is becoming less relevant as on-demand consumption gets layered onto appointment viewing. On-demand also creates a different competitive perspective. Every piece of content is now competing against the best. So a 2:00 pm show is also competing not just in a time slot but with the best on-demand content that the viewer has not consumed.

The production rhythm, it added, also varies by medium. While broadcasters and traditional publishers are bound by schedules, digital players have much more leeway to play with peaks and troughs in the content pipeline.

Indian players are also investing heavily

The report mentioned that video players have invested $4-5 billion in 2017 which is 14% higher than their investment in 2016. Much of this investment is going behind “Hero” content which is ~3-4X more expensive than traditional video. OTT players across the industry are investing heavily in originals. In 2018, Amazon has planned the release of 18 new original shows including some exclusives.

Even Netflix has shifted its strategy towards investing in some Hindi/regional content with the launch of Sacred Games.

According to the report, the video players rethink economic models as content becomes more expensive. They should also get consumers to discover content given clutter in the market. There is also the need to rethink the strategy of what content works on OTT vs. TV.