Documente Academic
Documente Profesional
Documente Cultură
‘Digital First’
journey
How OTT platforms can
remain ‘on-demand ready’
October 2017
KPMG.com/in
© 2016 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Disclaimers:
• All product names, logos, trademarks, service marks and brands are property of their respective owners
• The information contained in this report is of a general nature and is not intended to address the circumstances of any particular individual or
entity. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.
• Although we have attempted to provide correct and timely information, there can be no guarantee that such information is correct as of the date
it is received or that it will continue to be correct in the future.
• The report contains information obtained from the public domain or external sources which have not been verified for authenticity, accuracy or
completeness.
• Use of companies’ names in the report is only to exemplify the trends in the industry. We maintain our independence from such entities and no
bias is intended towards any of them in the report.
• Our report may make reference to ‘KPMG in India’s analysis’; this merely indicates that we have (where specified) undertaken certain analytical
activities on the underlying data to arrive at the information presented; we do not accept responsibility for the veracity of the underlying data.
• In connection with the report or any part thereof, KPMG in India does not owe duty of care (whether in contract or in tort or under statute or
otherwise) to any person / party to whom / which the report is circulated to and KPMG in India shall not be liable to any such person / party who /
which uses or relies on this report. KPMG in India thus disclaims all responsibility or liability for any costs, damages, losses, liabilities, expenses
incurred by any such person / party arising out of or in connection with the report or any part thereof.
• By reading the report the reader shall be deemed to have accepted the terms mentioned above.
3
Table of contents
Foreword
06
07
Executive
The Indian
11
summary
OTT market:
Key themes
Road map to a
new digital world 27
53
Key
45
Pivoting
traditional IT considerations
function to for digital
digital implementations
4
5
Foreword
The era of on-demand content as the preferred platforms for
is here. Consumers are consumers. To achieve a
increasingly accessing media market leadership position, an
outside the confines of their internal organisational
couches and within the transformation initiative,
comfort of their personalised which aims to harness the
Girish Menon
5+ inch screens. Moreover, collective energies of all
Co-Head
that screen is no longer stakeholders towards a single
Media and Entertainment
restricted to the elite as video minded ‘Digital First’ cause, is
KPMG in India
is going mass at a rapid pace of critical importance.
and as the consumption
It is this journey towards a
grows, the OTT consumers
digital organisation that we
will demand seamless access
are outlining in this document.
to services, compelling stories
Right from telling the digital
and value for money. To
story to the internal
deliver the same, platforms
stakeholders to implementing
would require an intuitive Himanshu Parekh
the digital architecture on
understanding of what the Co-Head
ground, each step holds the
consumers want, without the Media and Entertainment
key to survival and potentially,
users having to ask for it. KPMG in India
success in the market.
As the OTT landscape gets
hyper competitive,
organisations which are able
to tick all the above boxes
may stand a chance to emerge
6
Executive
summary
7
The ‘Digital First’ journey 8
Digital
vision and
strategy
The ‘Digital First’ journey 10
agencies operate.
z
television companies or creative key content and engagement questions,
enable quick reaction and draw meaningful
and actionable insights to fuel the customer
facing productivity and enhance overall
– Sameer Pitalwalla performance of the platform.
CEO • Data protection and IP security: With OTT
Culture Machine Media Pvt. Ltd. business models inherently digital in nature,
data and content security has become even
more paramount. It is vital for the platforms
Key drivers for successful digital transformation: to protect data and content across systems,
• Innovation focussed mind-set: Innovation has devices and the cloud.
become hygiene for OTT players, given India’s
crowded platform market. For a fruitful digital A successful transformation
transformation, it is critical for the leadership
to evaluate their business through a number needs a strong technology
of facets and set up in-house labs to drive foundation
both internal and consumer focused A strong technology foundation acts as the
innovation. Companies could also look to set backbone of any digital transformation
up incubation centres in the form of initiative.
accelerator programmes, or partner with
third-party innovation labs. The pivot from a traditional IT to ‘today’s’
digital function is underlined by an architecture
• Integration across organisational DNA: that is agile, flexible, and is able to deploy
Digital transformation requires a holistic technology frameworks to give quick insights
strategy that permeates across the entire for decision making around customer
organisation including front, middle and back behaviour and content strategies.
offices. The OTT organisations should move
past silos that have a traditional media (for eg: The ‘all-in’ commitment of the entire
TV) bias and adopt a ‘Digital First’ mindset. organisation to the cause is a non-negotiable
and is a precursor to embarking upon the
technology deployment.
In conclusion, the digital transformation
journey of a media company comprises a
As we transition into the new era
marked strategic shift, with customer centricity
where there is big focus in building
at the core, and an internal thinking process
direct to consumer digital businesses,
that needs to change the organisational DNA
one can derive substantially better
into ‘Digital First’ mind-set.
results if one uses the power and the
collaboration of the entire organisation
– particularly the established broadcast
businesses. Successful businesses will
be built when both units (digital &
broadcast) synergistically operate and
when one ensures participation of
maximum number of people in
the organisation in this
digital journey.
– Gaurav Gandhi
Chief Operating Officer
Viacom 18 Digital Ventures
The Indian
OTT market:
Key themes
11
The ‘Digital First’ journey 12
The Indian M&E sector is poised Mobile advertisement spend (INR billion)
to reap the digital dividend
With increased digital media consumption, CAGR 50.9%
stakeholders across the M&E value chain are
embracing the change and experimenting with
newer models of media consumption. This has
led to a marked shift in advertising spends with
marketers increasingly apportioning a larger 132.5
piece of their advertising budgets to the digital 90.6
64.5
media platforms. Globally, the share of digital 28.4 44.2
16.9
advertising spends is estimated to supersede
2016 2017P 2018P 2019P 2020P 2021P
television advertising spends by the end of
2017 and account for around 37 per cent of
total advertising spends1.
Source: KPMG in India’s analysis, 2017
Digital advertising is expected to contribute
nearly 27 per cent to the total advertisement
spends in India by 2021, reaching a size of
INR294 billion, up from INR76.92 billion in
2016, translating into a CAGR of 30.8 per cent Social media driving
over 2016–21.2 With mobile phones being the advertising spends
primary mode of digital consumption in India, Advertisers are innovatively leveraging social
mobile advertising spends are expected to
media channels, such as networking websites
grow faster, projected to reach INR132 billion
and blogs to connect with their target
by 2021 from INR16.9 billion in 2016, at a CAGR
of 50.9 per cent.2 audiences. Digital ads on social media
platforms registered a 28 per cent contribution
Although search and display advertisements to global digital ad spends, with Facebook
remain the largest component of digital accounting for 15 per cent of the digital
advertising spends with a 47 per cent share,3
advertising spends.3
this segment is relatively mature and is
expected to grow at a slower pace when In India, social media’s increasing traction
compared to video advertisements2. amongst consumers is largely linked to
However, video advertisements, which is platforms such as Facebook and Twitter, which
currently about 18 per cent of the digital ad have also tasted success by attracting the
spend, is expected to grow at a CAGR of 40 per country’s marketers. Monetising social media
cent by 2021. Non-metros now account for is becoming lucrative and brands are allocating
almost 30 per cent of YouTube watch time, increasing digital budgets to social media
backed by regional content, better devices and promotions.4
increasing internet access.2
CAGR 30.8%
Digital video advertisement spends (INR billion) With improving digital infrastructure and
falling data costs, digital consumption is
expected to become more mainstream. The
90 CAGR 40%
80
ensuing growth in investment by advertisers,
70 buoyed by evolution of the audience
60 measurement technologies are likely to
50 continue to drive growth in digital ads over the
40 74.4 next five years.
30
20
10
13.8
0
2016 2021P
Key success
factors for an
OTT platform
900 8. TRAI Performance Indicator Report March 2016 and March 2017,
788 Telecom Regulatory authority of India, accessed on September
800 731 18,2017
675
700 9. KPMG in India’s analysis and estimates, 2017
604 313 10. India to lead global growth of smartphone connections – GSMA,
600 521 285 The Mint, accessed on September 18, 2017
259
500 429 234 11. India pips china in smartphone sales pace but lags in volume,
400 180 Economic Times, accessed on 13 September 2071
100 12. Bharti airtel plans to launch bundled 4g smartphone at rs 2500
300 342 376 before diwali to counter jio, Economic Times; accessed on 17
161 198 241 300
200 September 2017
13. VNI Mobile Forecast Highlights, 2016-2021, Cisco, accessed on
100 168 143 14 September, 2017
129 116 104 99
0 14. TRAI Performance Indicator Report, March 2017, Telecom
Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Regulatory Authority of India, accessed on 18 September,2017
15. 50% of India's internet users will be rural & 40% will be women
2G 3G 4G by 2020: BCG , Times of India, accessed September 24, 2017
16. Mobile wallets see a soaring growth post demonetisation, 19. “Internet Trends 2017- Code Conference”, Mary Meeker,
Hindustan Times, accessed on 18 September,2017 accessed on 18 September,2017
17. KPMG in India’s’s Analysis, 2017 20. “How advertising in OTT will play out”, Financial Express,
18. Altbalaji goes global partners with boku for carrier billing to accessed on September 18, 2017
stream original video content, Pymnts, accessed on 18
September,2017
17 The ‘Digital First’ journey
25. Golden globes 2016 best TV comedy - Mozart in the jungle; The 27. Amazon spends top dollar to win prime spot in digital content
Verge, accessed on 17 September 2017 race, Economic Times, accessed on September 19, 2017
26. OTT services landscape in india is getting more competitive;
Broadcast and Cable Sat, accessed on September 18, 2017
19 The ‘Digital First’ journey
Additionally, the ‘reality show’ genre is also revenues via a new distribution medium Global
being explored by the OTT players, with brands, such as Target and BMW, have started
Amazon announcing three reality shows for the using live streaming to launch products and run
Indian market including, Jestination Unknown, marketing campaigns29. Recently, the launch of
Comic Kaun and The Remix, slated to be aired Vivo V7+ phone in India was streamed live on
in early 201828 . various social networking and OTT platforms.
Other phone makers such as Xiaomi, Samsung
However, investments in original content needs
also streamed the launch of their new models in
to be balanced with economics given the
India on Facebook and YouTube respectively30.
dependence on AVOD models. Considering the
fact that a 20–30-minutes fiction content on Hotstar also streams live news from Republic
digital can cost between INR1.5 to INR2.0 TV amongst other channels such as Fox News,
million, higher than the content cost on Fox Business, and the UK’s Sky News31.
television; monetisation only through an Traditional players such as Times Now and
advertisement (AVOD) based monetisation NDTV are using their digital presence for events
model could be challenging and such as the Budget speech, election results
SVOD/Freemium models would need to be among others.
explored for long-term sustainability.
However, the Sports segment has a significant
value for the consumer when viewed live and
‘Live’ streaming – Emerging genre lends itself well to potential monetisation. Live
Live streaming over digital platforms is on the sport broadcasts garner high advertiser interest
rise. Major sports events, news, high-profile and ad rates both on linear television broadcast
entertainment events, concerts and product as well as live streaming, case in point being ad
launches are beginning to see traction in terms rates on OTT platforms, which have nearly
of being streamed live. Social networking doubled y-o-y for the IPL and Champions
websites like Facebook, Snapchat, Instagram, Trophy. The potential of this sub-segment could
and YouTube have activated live streams where also be gauged by the recent IPL auctions where
users can share their real life experiences. Facebook bid a substantial INR39 billion for
digital video rights for five years.32
Live streaming helps event organisers get
access to a larger audience and incremental
28. Amazon Prime Video bets on reality shows in India, The Mint, 32. Star India beats Facebook others wins IPL media rights with Rs
accessed on September 22, 2017 16347 cr bid, Financial Express; accessed on September 18, 2017
29. Brands begin to see marketing benefits in livestreaming ,FT, 33. Sports OTT service Veqta bags India streaming rights for
accessed on September 18, 2017 Mayweather vs McGregor bout, Economic Times; accessed on
30. Vivo v7 plus launch price in india specifications features, Indian September 17, 2017
Express, accessed on September 18, 2017 34. Facebook live to show AFC cup games in India, SoccerEx,
31. Republic TV to launch on hotstar, The Hindu Business Line, accessed September 15, 2017
accessed on September 18, 2017
The ‘Digital First’ journey 20
Such partnerships allow platforms and However, given the costs associated with
creators to access the 400+ million wireless original content that most platforms are
internet user base45, with minimal costs to gravitating towards, AVOD models may not
acquire that traffic organically. The revenue even lead to a breakeven on every video. As an
models usually followed are a combination of illustration, assuming a CPM of USD1.5 to 2.5
advertisement based revenues, with a potential with You tube’s share at 50 per cent; and cost
fixed fee component. While the content of producing an original, ‘for-digital’ episode of
discoverability on a telco platform could be 23-25 minutes at around INR 1.5 million, the
better than a YouTube, a plethora of video would need to touch more than 20
competing content, would make brand million paid views47 for the content producer to
recognition and user stickiness difficult in the achieve a breakeven. Further, the lack of third
long run. party digital measurement makes the ROI
visibility for a campaign challenging.
Netflix in India intends to partner with Airtel,
Vodafone and D2H (DTH platform), while
Hotstar allows Jio Play users to access its
Subscription based (SVOD) models
premium content at zero cost. Amazon India is The SVOD models have traditionally been
reaching out to customers through multiple deployed by global platforms such as Netflix
avenues of distribution like cab aggregators for and Amazon Prime Video, owing to their
in-car entertainment (Ola), fixed broadband original content strategy right from the outset.
providers for VOD services along with telco The model has seen tremendous success,
partnerships (Vodafone)46. especially in markets such as the US, where
OTT platforms emerged as alternatives to
television, rather than the complimentary
Monetisation models evolving to presence in India.
a mix of advertisement and
Unlike global markets, India has a robust cable
subscription based revenues TV landscape, with a wide array of channels
The rapid growth of OTT consumption in India available for INR 100 and above, and in some
has seen the platforms continually evaluate the cases, free of cost through the DD FreeDish
monetisation models adopted by them. The platform, which makes the SVOD play
Indian market is characterised by four major challenging for operators. However a SVOD
monetisation models – Advertisement based play is essential for long-term sustenance of a
(AVOD), Subscription based (SVOD), Freemium platform, one which is especially focussed on
being a mix of AVOD and SVOD; and original content.
Sponsored content which could co-exist with
Netflix has seen some traction on its SVOD
any of the other three models.
platform in India, with the focus only upwardly
mobile, English language speaking
Advertisement based (AVOD) models subscribers. The platform is estimated to have
The advertisement based (AVOD) model around 200,000 subscribers, up from 50,000-
essentially aims at monetising the 70,000 a year ago48. Other operators such as
traffic/impressions on a particular video by Balaji Telefilms and Sun NXT have also gone
showcasing advertisements, which may be in the SVOD way through their own platforms.
the form of video or text. One of the most
viewed video on demand platforms in India, Business Subscription price
Platform
YouTube, is based on the AVOD model. model (INR/month)
500 to 800
The AVOD model has also been adopted by
Netflix SVOD (depending on
some broadcaster backed platforms in India,
number of logins)
owing to their in-house library that forms the
bulk of content available on the platforms. Sun NXT SVOD 50
VOOT and OZEE currently depend on
advertising for revenue realisations from their Amazon First year - ~42
platforms46. For small content producers, the SVOD
Prime Video Second year - ~85
AVOD model helps them realise revenues
without any investments in the underlying HOOQ SVOD 89
platform.
Source: KPMG in India’s analysis, 2017
45. TRAI Performance Indicators, March 2017, Telecom Regulatory 47. KPMG in India’s analysis, 2017; paid views defined as when an
authority of India, accessed on September 21,2017 advertisement is watched for a threshold limit
46. KPMG in India’s analysis, 2017 48. Based on industry discussions
23 The ‘Digital First’ journey
Google reported issuing refunds to hundreds Game of Thrones, one of the world’s most
of advertisers in August 2017, after detecting a avidly watched shows, is considered to be the
large amount of bot generated fraudulent most pirated content globally, with many
traffic. Although the refunds were around 7 to leakages dotting its 7-season history58. Star
10 per cent of the monies spent by these TV’s Hotstar, responsible for broadcasting the
brands, the same was intended to build long- show in India famously spearheaded a
term trust with advertisers56. However, smaller campaign ‘Torrents Morghulis’ after recent
platforms are currently not technologically piracy incidents with the show59.
equipped to handle the bot behaviour. The
Across mediums, piracy not only damages
need of the hour for the industry is to come
revenues and market shares, but also deters
together as one body, and implement
content creators from investing in new content,
consistent technology across digital platforms
and thus the impact can be severe on SVOD
to ensure sustained growth.
platforms.
Industry bodies such as Motion Pictures platform and their resultant engagement, while
Association of America – India arm (MPAA for others, building a profitable business from
India) and Federation of Indian Chambers of the outset defines their long term vision.
Commerce and Industry’s (FICCI) media arm,
While the customer engagement focused
have been actively engaging with the
platforms are likely to see rapid growth in
government to fight online piracy. Focused
terms of active users and time spent on the
units such as MIPCU (Maharashtra Intellectual
platform, the traffic/customer acquisition costs
Property and Crime Unit) and Copyright Force
and investments in content would imply a long
(a joint initiative of Telangana Intellectual
gestation period before profitability kicks in.
Property and Crime unit and MPAA India) are
Such platforms however, may have more
mandated to exclusively work towards curbing
leverage, when it comes to cashing in on the
the online growing piracy menace in the years
large potential that online video holds.
to come62.
The above does not imply that a focus on
Scale and economics – A profitability is a flawed strategy. Recovery of
balancing act for OTT platforms operations and content costs to build a long-
term sustainable business is probably the most
The year 2016 saw OTT platforms proliferate critical focus areas for media organisations.
with the video on demand segment in its However, platforms would need to be
infancy. However, with increasing maturity cognisant of the benefits that customer loyalty
around distribution and content strategies by and continuous engagement bring in, and the
stakeholders in the industry, the segment has revenue potential that operations at scale can
reached a stage, where current decisions will achieve.
have a significant impact on which platforms
survive the VOD race in the long-run. Business that can delicately balance the above
considerations, along with compelling and
The key indicators for some platforms today discoverable content would eventually be the
are not around profitability margins, but more likeliest winners.
around the critical mass of customers on the
The ‘Digital First’ journey 26
Road map to
a new digital
world
27
The ‘Digital First’ journey 28
Phase 2
Phase 1 Phase 3 Phase 4
Customer
Digital vision and strategy Business design Execution planning
proposition
Operating
constraints
Digital
Strategic Customer technology
context research strategy
Digital Digital
Digital strategy strategic
capability
and business road map
model
plan
Current state Strategy
Customer and Operating
and digital execution
staff model
maturity programme
proposition impacts
design
Technological,
cultural and
operating change
management
28
29 The ‘Digital First’ journey
To determine the macro and micro trends covering digital infrastructure and access,
1. Strategic context
demographics, technology, consumption patterns, content, etc.
2. Current state and To determine the organisational capabilities and positioning around digital, the gaps and skills
digital maturity required to operate in a digital environment relative to peer and industry benchmarks
assessment
3. Operating
constraints Is critical to determine a balance between what is feasible given the financial and operating
assessment limitations of an organisation and the optimal desired end state
4. Digital strategy and To determine the approach to a digital play, the business potential and the related business
business plan economics
5. Technological,
cultural and operating To identify the organisation wide changes required to operate in a digital environment
change management
`
`
29
The ‘Digital First’ journey 30
Functional
Organisational Current state
KPI Channel Financial richness Maturity
operating
SWOT performance volumetric KPIs compered to assessment
model
competition
30
31 The ‘Digital First’ journey
In less mature organisations, there is a need between the desired end state and the
for extensive stakeholder management and operating and financial constraints of the
pitching of digital as a credible investment area organisation. While media companies can opt
compared to traditional, which is a more for a high investment model focussed on
comfortable investment. Ultimately, if market share acquisition and high customer
investment in digital goes up, it is likely to engagement, this is likely to require significant
reduce investment in other business areas. levels of investments. Additionally, OTT
business models are still evolving and as such
A number of traditional media organisations
current economics and returns may not
underestimate the challenges around a shift to
compensate for the investments required. An
a digital model, most of which stem from lack
organisation needs to have a clear sense of its
of true understanding of ‘what is digital’ for
state of digital maturity, capability to invest,
their organisation and overestimation of their
expectations on returns and calibrate its
state of digital maturity.
desired digital end state accordingly.
It is also essential to define the KPIs to
Operating constraints – dream vs measure the success of digital transformation
reality process since the strategy to achieve different
Combining the ‘outside in view’ of the market metrics would need to be different i.e. revenue
with the ‘inside out view’ of the organisation vs market share, customer experience vs
will enable a company to identify the gaps profitability, etc.
While evaluating the desired digital end state, key aspects that should be addressed are
• Platform play vs licensing models
• AVOD vs SVOD
• Market share vs economics
• Brand building and mindshare
Once the overall digital strategy is designed, the related business case along with the core
components such as timeframe, approach, investment requirements, etc. needs to be determined.
31
The ‘Digital First’ journey 32
Employee
People perform well in an environment they have been
involvement part of designing
Communication
Communication is a strategic lever to
strategies enhance awareness, buy-in and ownership
across the organisation
The leadership needs to understand the can deliver and align these technologies to
required changes that are crucial for digital drive business value. According to a recent
transformation, including new skills, employee survey, more than half of the surveyed IT
behaviours, organisational structures and services firms said that innovation and critical
corporate culture. With the adoption of new thinking are the key shortcomings both
technologies such as artificial intelligence (AI), amongst fresh engineers and existing
augmented reality (AR), virtual reality (VR), workforce, as they look at digital
cloud, machine learning, big data and Internet transformation.1
of Things (IOT) into business operations,
organisation would require a workforce with 1. AI dominates: Indian IT stares at talent shortage in digital,
specialised skills that cloud skills, Business Standard, 9 January 2017
32
33 The ‘Digital First’ journey
33
The ‘Digital First’ journey 34
Operating model
34
35 The ‘Digital First’ journey
Programme design
Burn rate
Scoping
• Problem statement
• Solution options
Product risk
35
The ‘Digital First’ journey 36
Digital first
01 02 Organisation-wide change
Innovation focussed mindset Integration across organisational DNA
Innovation is not a choice anymore. Strategy to transform that need to be
For digital innovation to be holistic and inclusive of all business
successful, it is pivotal for the segments and functions, including the
leadership to assess their business front, middle and back offices.
through a number of lenses —
technology, business strategy, future
gap analysis, and digital road map
04 03
36
37 The ‘Digital First’ journey
37
The ‘Digital First’ journey 38
38
39 The ‘Digital First’ journey
• Content development
• Content management
• Content supply chain
• Content processing and
sharing
39
The ‘Digital First’ journey 40
40
41 The ‘Digital First’ journey
3
2 4 5
1 Subscriber/
Machine Recommendations Tracking and
Data upload Audience/
learning and campaigns reporting
Programme scoring
Campaign 2 (TG2)
Campaign 3 (TG3)
Raw media Algorithms analyse The algorithm calculates a A target group + control Results of implementation
data is loaded vast amounts of score on each viewer at group is made available for and integration for target
in real time to data, detect patterns Individual/Household retention or up-sell activities. and control groups are
platform. and automatically level based on multiple tracked automatically.
learn from criteria. Timely update of
experience. scores
Measure &
Quantify Understand Model Implement
refine
41
The ‘Digital First’ journey 42
Knowledge gathering developing Ad Hoc and End users get results of adoptions and Highly tuned infrastructure +
strategies and roadmap Foundational Analysis can start operationalizing big data established programme
Low awareness of value + No real
executive support
Level 5
recommendations
Level 3
Level 4
Level 1
Level 2
42
43 The ‘Digital First’ journey
Consequently, the service provider’s control apps, peer-to-peer file transfers, through cloud
over the devices used to decode, distribute and storage, and sharing and access allowed on
consume content is significantly reduced. In social networks.
addition, the shift from operator controlled
endpoints to user-selected devices reduces It is thus important for OTT platforms to
companies’ involvement in important security leverage technology that delivers content
decisions. securely to users’ devices so that not only the
authorised viewers can access the content, but
To control and manage a multi-platform and
multi-service space, digital content providers to also ensure that the content cannot be
must embrace a holistic security approach to downloaded or shared illegitimately.
address the security requirements on any type
of content (live or on-demand) on any device. Watermarking and pirate monitoring
Different approaches can be employed right
from the source of content origin to the means While dealing with content piracy at the server
of distribution. The idea is not to resort to just and the application level could be effective, it
a defensive tactic but also search for ways to may not be a fool-proof method of protecting
implement an end-to-end framework of content. For instance, stream and screen
content security. capturing tools help pirates capture the video
that is played on the screen. Insertion of digital
watermarks to video content can be used to
Content security interventions required across narrow down on the source of the content
all touch-points leakage which feeds the redistribution
Securing content at source helps limit the streaming servers.
instances of security breaches. Hence, Another important element around cyber
adopting end-to-end content protection security technology is to monitor pirate
technologies such as intrusion detection services. Companies can employ cyber-security
systems, audit trails as well as technologies vendors that work with the rights owner,
that control physical access to server facilities national authorities and ISPs to take down
become critical for organisations. illegal servers.
Further, a major chunk of users prefer to It is also critical for companies to address the
stream OTT content on smartphones and timing of rights windows. Companies must
tablets. However, natively installed apps on control concurrent access to streamed content
such devices come with a number of risks such at the subscriber account level and exercise
as sensitive content leakage, insecure content control over offline content access and
transmission and unprotected data storage. downloads.
This poses the risk of data sharing between
43
The ‘Digital First’ journey 44
44
Pivoting
traditional
IT function to
digital
45
The ‘Digital First’ journey 46
The execution planning exercise for a digital governed and managed. A well governed IT
transformation is the final activity for organisation synchronises the business and
operationalisation of the actual pivot of a technology aspirations while a well-managed
traditional technology organisation into its IT environment ensures consistency in delivery
digital avatar. The digital transformation for via reference architectures (business, data,
OTT platforms while being a business
application & technology) and leverages both
prerogative, has inherent technology
IT & OT (operating technology). The objective
underpinnings. The digital transformation
process for an OTT player is a strategic shift is to ensure visibility and interdependencies of
with customer centricity at the core realised via each IT component (process, application,
persona profiling, on-demand digital content, services, data and infrastructure) across the
and personality/demographics based landscape.
suggestions, provisioned smoothly across a
multitude of devices in an omni-channel
environment. Delivering such a tailored
Two nodal frameworks for digital
experience necessitates a technological
enablement
architecture that is agile, flexible and scalable Digital enablement is not accidental in nature
on demand and technologies that are easy to and hence mandates careful planning and
implement and that give quick insights for course correction. Therefore, to ensure that the
decision-making, especially around content organisation is digitally enabled it is imperative
strategies. that the CIO/CTO draft a Digital Strategy in
conjunction with the Enterprise IT strategy with
For the enablement of such an orchestration, it
dedicated budgetary allocations.
is imperative to have an IT environment that is
optimisation
• AI based content curation • Enterprise mobility
• Operational reporting
• Big data and analytics
• Digital strategy
Technology • Product/service positioning Digital Enable the
driven and extension driven internal and
disruption transformation external
• Scenario-based planning
customer
46
47 The ‘Digital First’ journey
Digital operationalisation
Digital operationalisation for a VOD platform could be realised via key themes based on the
customer experience, digital interventions (niche products), content creation, advertising
automation and enabling architecture. Enterprise and digital architectures are the core building
blocks of the ecosystem. The themes in unison provide an engaging experience to the customer.
Digital architecture
• Digital architecture definition
• Digital intervention operationalisation
via transition architectures Customer experience
• Personalised customer experience as per
Enterprise architecture personas
• Consistent omni-device experience
• Business architecture definition • Intuitive UI/UX
• Data and BI architecture definition
• Application architecture definition
• Technology/infrastructure architecture
definition
• Architecture governance Next-Gen Digital
architecture Digital interventions
• Selection and prioritisation of key
customer experience enabling
digital interventions
Ubiquitous data exchange
• Device agnostic, service based data Automation Digitisation
transfer and exchange
• Governed data environment Workflow digitisation
(customer centric)
• Use-case definition and prioritisation
Business workflow automation
• Core business process automation Logic and asset digitisation
• Architecture governance process • Asset inventory digitisation
automation • Logic digitisation and decentralisation
47
The ‘Digital First’ journey 48
Digital
vision
Data/information requirements
48
49 The ‘Digital First’ journey
49
The ‘Digital First’ journey 50
Media life
Pre- Post- Multiplatform Experience
Production cycle Consumption
production production distribution integration
management
Information flow
Infrastructure
Wireless
Fixed Line Mobile Cable Others
LAN
Services
Video Voice Music Gaming Messaging Others
The media services design allows an extremely streams and VOD content to consumers
climbable, robust, secure and economical connected via mounted or mobile IP networks.
atmosphere for the delivery of live/linear
50
51 The ‘Digital First’ journey
Key interconnects with enterprise but it does not interfere with the physical
OT/IT world. While communications has always been
a part of scope for IT, traditionally OT has not
Operational Technology (OT) acts in real time been considered a networked technology. OT
on physical operational systems to manage is now getting modernised through converging
media life cycle, i.e., from pre-production to with IT with required considerations for
consumption. Whereas, Information maintaining security for critical infrastructure.
Technology (IT) is the whole technology stack, This convergence provides multiple
including the hardware infrastructure and advantages as set out below:
software applications used to transform data
51
52 The ‘Digital First’ journey
52
Key considerations for
digital implementations
53
The ‘Digital First’ journey 54
54
Acknowledgement
We would like to thank the entire team at KPMG in India
for their efforts in developing the report.
Apurva Dixit
Dev Khandwala
Jasleen Taneja
Karan Dasaor
Neha Pevekar
Priyanka Agarwal
Radhika Goel
Raahul Gautam
Rasesh Gajjar
Sahil Koul
Sameer Hattangadi
Sanjeev Bhar
Sharon D’silva
Shilpa Taneja
Shveta Pednekar
Sutirth Dasgupta
Vibhor Gauba
The ‘Digital First’ journey 1
Girish Menon
Co-Head
Media and Entertainment
T: +91 22 6134 9200 LA India Film
Council contact:
E: gmenon@kpmg.com
Himanshu Parekh
Co-Head
Media and Entertainment
T: +91 22 3989 6000 Lohita Sujith
E: himanshuparekh@kpmg.com Director
Corporate Communications
Aditya Rath T: +91 22 6139 7000/02
Partner E: lohita_sujith@mpaa-india.org
Digital
T: +91 22 3989 6000
E: adityarath@kpmg.com
KPMG.com/in ficci.in
Follow us on:
kpmg.com/in/socialmedia
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to
provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the
future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.
The views and opinions expressed herein are those of the interviewees and do not necessarily represent the views and opinions of KPMG in India.
© 2017 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative
(“KPMG International”), a Swiss entity. All rights reserved.
The KPMG name and logo are registered trademarks or trademarks of KPMG International.