In our latest Industry Spotlight by Creative First, Karan Taurani, Senior Vice President at Elara Capital, and Lohita Singh Sujith, Senior Director of Copyright & Digital Economy at the Motion Picture Association, explored key trends shaping the entertainment industry and shared insights into predicting its future.
Karan began by pointing out three major trends. Firstly, he highlighted the deceleration of linear TV growth, dropping from the historical 8-10% annual rate to a modest 2-3%, a trend likely to persist. The second trend emphasized the necessity for consolidation through mergers and partnerships in the overcrowded Indian OTT market, exceeding 40 platforms. Karan stressed that collaboration is vital to reduce costs and ensure profitability beyond traditional media boundaries.
The third trend delved into connected devices, particularly TVs, and their potential impact on accessibility and affordability. Karan illustrated how partnerships, bundling platforms with TV manufacturers, could substantially decrease subscription costs, making services up to 50% cheaper. He predicted significant growth driven by the adoption of connected TVs.
Screen density in India was also touched upon, with the closure of single-screen theatres outweighed by the addition of multiplexes. However, Karan noted that the overall growth is not substantial due to content volatility and the unsustainability of single-screen theatres. The conversation transitioned to advertising trends, revealing a stark contrast in digital advertising growth – a mere 10% from 2013-2019, surging to 45% since the onset of COVID.
Predicting the success of films or TV series was a focal point, with Karan highlighting that a small fraction of content commands a majority of expenses. He discussed the experimentation happening on OTT platforms, leading to increased failure rates, and stressed the importance of data sharing between platforms and content creators for better decision-making. He commended Netflix for its transparency in releasing data on show viewership hours, emphasizing the potential benefits of such openness for the entire ecosystem.
As the conversation concluded, Karan expressed optimism for 2024, foreseeing opportunities in gaming, esports, and heightened ad spend related to elections. Overall, the discussion painted a dynamic landscape with evolving trends and emphasized the need for collaboration and transparency in the entertainment industry.