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4G can increase demad for online content

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With a greater rollout of 4G services in the country, consumer demand for online content will increase rapidly in the coming years, says Deloitte.”4G will bring a complete transformation of… television viewing experience and mark a shift in the control from the broadcaster to the consumer. Further, low-cost smartphones bundled with low tariff will help in boosting the Internet usage in India over the coming years,” a Deloitte report said.

4G services increase the capability to offer high-quality content. With India becoming a digital platform, even rural users will prefer online content, it added.

Rural users account for 35% of India’s Internet community despite representing over 60% of the country’s population.

In the coming years, a digital platform like digital audio and video on demand service will see increased activity.

Hence, getting the right business model will be very crucial, Deloitte said.

Once better bandwidth by way of 4G is available and appropriate content is programmed, this platform can see reasonable growth in the coming years, it further said.

India has become the third largest country in terms of Internet users. The total number of Internet subscribers had reached 319.42 million by the end of June 2015.

According to Internet and Mobile Association in India (IMAI), the Internet user base will cross 500 million by 2018, with rural Internet users alone being almost 210 million.

Traditional TV services are well accepted and direct TV is still the chosen option, but OTT (over-the-top) is the new consumer reality which is changing ways of TV consumption for large masses, Deloitte said.

OTT is the delivery of film and TV content through the Internet, without requiring users to subscribe to a traditional cable or satellite. Online video, however, remains largely driven by YouTube and other social networking sites.

According to a Media Partner Asia (MPA) report, India’s active OTT video subscribers in 2014 were 12 million and is expected to grow to 105 million by 2020. Though OTT media is growing faster, there is quite a long way to go.

“Currently, most of the OTT players are generating revenue through ad supported models. OTT players are devising product and service offerings that lure free users to become paid subscribers,” Deloitte said.

Media companies like Star, Sony Pictures Networks, Zee, Eros and Reliance Entertainment have begun offering OTT video on demand (VoD).

Deloitte believes that apart from traditional broadcaster, OTT VoD remains the win-win situation for both customers and service providers.

It expects regional content to also be in demand, as a survey conducted by Vuclip shows that 78 per cent of the users prefer watching content in their native languages.

Credits: dnaindia

 

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Xiaomi May Lose Top Spot in Indian Smartphone Market in 2020

According to IDC, India's smartphone market shipped a record 46.6 million units in the third quarter of 2019, registering 26.5 per cent quarter-over-quarter and 9.3 per cent year-over-year growth

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The highest demand among people was for of smartphones, followed by Mi ecosystem devices, accessories and Mi TVs. Wikimedia Commons

BY GOKUL BHAGABATI

Chinese smartphone maker Xiaomi is confident that it will be able to retain its No. 1 position in the Indian smartphone market next year too, but industry experts believe that the country may see a different winner in 2020.

At the end of the first quarter of 2019, Xiaomi had a market share of 30.6 per cent, far ahead of Samsung, which took the second spot with a share of 22.3 per cent, according to an International Data Corporation (IDC) report.

But by the third quarter of 2019, Xiaomi’s market share fell to 27.1 per cent. Samsung too experienced a decline as its share went down to 18.9 per cent, IDC data showed.

“Given the remarkable Q3 2019 strides made by the BBK (parent company of OPPO, Vivo, Realme and OnePlus) brands in India, Xiaomi would need to be wary of the rising competition and the decline in its market share. In the first three quarters of 2019, Xiaomi lost three per cent market share,” Prabhu Ram, Head-Industry Intelligence Group (IIG), CyberMedia Research (CMR), told IANS.

Out of the BBK Group brands, Realme’s rise in the Indian smartphone market has been truly spectacular. From 6 per cent market share in Q1 of 2019, it grabbed 14.3 per cent market share at the end of Q3.

Vivo also witnessed its fair share of growth this year. Its share rose from 13 per cent in Q1 to 15.2 per cent in Q3. OPPO did even better than Vivo in terms of growth. OPPO’s share grew from 7.6 per cent in Q1 to 11.8 per cent in Q3, according to IDC.

“As per our estimates, 49 per cent of the sales of smartphones in 2020 will be in the basic segment (Rs 5,001 to Rs 10,000) where Xiaomi is still strong,” said Faisal Kawoosa, Founder and Chief Analyst at market research firm techARC.

Xiaomi
Xiaomi is expected to release the foldable phone by the end of 2019. Wikimedia Commons

“The other major chunk is mid-segment (Rs 10,001 to Rs 25,000). Here we have increasingly good number of strong players emerging like Realme, OPPO and Vivo. This segment will sell 44 per cent of smartphones,” Kawoosa said.

Speaking of Xiaomi’s prospects of retaining the No.1 position next year, he said that “looking at the potential and how Xiaomi is positioned, it seems difficult for the brand to retain the honours.”

“It is now on a defensive mode,” he added.

“As Realme comes with new offerings in the mid-tier and premium segment, and OPPO and Vivo also unveil plans to go premium, Xiaomi faces an uphill battle,” Ram agreed.

To retain their numero uno position, Xiaomi would need to go beyond its existing brand imagery and also consolidate its offline play, Ram said.

“Xiaomi has been able to build on their offline play by building their own chain of Mi Stores, apart from their non-exclusive network of Mi Preferred Partners,” he added.

But if Xiaomi loses the top spot in the Indian smartphone market, which brand will replace it?

Xiaomi
Xiaomi also refreshes ‘Mi TV’ series in India. (Wikimedia Commons)

While CMR’s Ram thinks that the question is “wide open right now”, Kawoosa believes that Samsung could resurface as the leader.

“It will take other challenger brands time to cross the 20 per cent mark and eventually aspire to become No 1. In that case, Samsung could resurface as the leader while Xiaomi’s share is being eaten up by Realme and others,” he said.

Ram, however, warned that one cannot underestimate the potential of Realme.

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“Realme looks promising and with aggressive strategies, it is potentially well-placed to scale new heights, as long as it is able to avoid inventory glut,” Ram said.

According to IDC, India’s smartphone market shipped a record 46.6 million units in the third quarter of 2019, registering 26.5 per cent quarter-over-quarter and 9.3 per cent year-over-year growth. (IANS)