By Sumit D Chowdhury

The media and entertainment (M&E) industry in the country - largely comprising
television, radio, films, music and print - is constantly at a crossroads. The country's
overall economic growth, liberalisation of policies, foreign direct investment and
technology advancements have helped the M&E industry expand rapidly in recent
times. According to government reports, the industry stood at $12.91 billion in
2009, up 1.4% over the previous year, and ensuring growth even in the most
difficult economic milieu.

Yet, profitability of the industry is significantly low compared to that of the

developed economies. For the industry in India, there are two key drivers that are
impacting profitability and, thus, need greater focus: rapid digitisation and changing
customer behaviour . Also, the technology trends are changing faster than ever
before and it is critical for the M&E players to keep pace to ensure higher profitable
growth.

Digitisation is the flavour of the day. In the last three years, mobile music and video
adoption increased five-fold globally. During this period, the number of online
newspaper readers has witnessed a three-fold rise. Today, consumers are always
connected and just a few clicks away from an ocean of digitised content: music,
video, games, shopping - the list goes on.

Taking advantage of this, the industry is trying to converge multiple types of media,
enabling the Internet as the widest distribution channel. With the launch of next-
generation wireless Internet services in the country through 3G and WiMax/Wi-Fi
technologies later this year, the Internet penetration is predicted to increase
tremendously. Mobile phone, with a much wider presence, is another key option,
especially in rural and semi-urban areas of the country. The form factors and
specifications of new tablet PCs, smart phones and TVs are fast changing to allow
the different formats and connection technologies to the Internet. The low-cost
educational computer is also going to get a shot in the arm from government
policies in the next two years. While the trend continues, it is important that new
business models emerge to monetise this convergence.

Consumer behaviour is also a key factor in the ongoing transformation of the M&E
industry. The audience in country are uniquely diverse from a social, economic and
linguistic standpoint. Companies, therefore, face additional challenges of developing
products that can cater to this varied set of customers. However, what is common
among all consumer groups is the rising demand for content.

Digital music sales have surpassed the physical sales of music as the former is far
more accessible, affordable in discrete quantities and easy to buy. To scale the
changing market scenario, companies need to relook at their business model,
ensuring new opportunities and continuing to protect core revenues. The growth of
print media, for example, received a dent with the advancement of digital media.
While the print media has secured moderate growth in the recent past, fuelled by
the increasing popularity of vernacular media, companies took a different strategy
strengthen their urban customer base. Today, most print publications, even those in
vernaculars, have a significant presence on the Web to cater to the requirement of
this audience.
Sector: IT and IT-related
No. of centres : 250
Student intake : 60 per batch per centre
Course duration : 1 month
Course fee : Rs 7,000 to Rs 10,000

In a meagre monthly salary of Rs 1,000, Nazra Ashraf Ali, a 23-year-old primary school teacher in Mukandpur in
Delhi, provides for a family of three, comprising her mother and an older sister. This had to change. Five months
ago, Ali heard about an animation course called Anizooms being offered at subsidised rates by Nasscom Knowledge
Network (NKN) Centre, part of the Nasscom Foundation, in Delhi's Chandni Chowk area.

The course clicked with her immediately: not only would she be putting her creative skills to use, but she would also
have the opportunity to earn eight to 10 times more. Ali had completed a six-month beautician's course and was
adept at henna designing and bridal make-up. She aspired to become a graphic designer, and earn Rs 8,000-10,000 a
month working for a corporate.

However, it wasn't easy. Ali had completed her Class X six years ago, and getting back to studies after so long
wasn't going to be easy. But she enrolled anyway. Five months into the programme, she has got the hang of it. "My
drawing and creative skills are really helping me in this course," says Ali, with a big smile. Four people from her
batch have already been placed, and Ali is hopeful of joining them.

There were others before Ali who helped propel Nasscom's Anizooms course. In November 2009, a group of 25
young, burqa-clad women first walked into Nasscom Foundation's NKN centre in Hyderabad to learn graphic
designing in 2D and 3D animation. Like Ali, these women were adept at henna designing; and the foundation's NGO
partner, Technology for People, encouraged them to join the one-year Anizooms course to hone their artistic talent.

After the initial success of the Hyderabad course, Nasscom Foundation started similar centres in Delhi and Sangli in
Maharashtra this year, in partnership with voluntary organisations. In Delhi, the course aims at providing livelihood
opportunities and skill development for girls between 16 years and 22 years from underprivileged communities. This
course costs trainees Rs 7,000-10,000 a month. "In a big academic institute, it would cost them `2.5-3 lakh," says
Abhishek Kishore, executive director of the NGO partner, ANK.

The 56 students on NKN's rolls have the option of paying their fees in equal monthly instalments once they start
working. Their diploma is certified by Accenture and Nasscom Foundation. Accenture, the key corporate partner for
Anizooms, helps with content and funding. "Accenture hires 25% of the graduates from this course," says Kishore
of ANK. "We want to involve the smaller players so that the entire industry gets involved in this effort," adds Rita
Soni, the newly-appointed CEO of Nasscom Foundation.

Nasscom is in talks with the National Skill Development Committee (NSDC). It wants to partner NSDC to provide
training in the IT space and sit on the IT council. "The IT sector is a $60 billion industry and will certainly need a lot
of people. We are going to help take this forward," says Soni.

In 2005, the Nasscom Foundation had 65 NKN centres. In five years, they have expanded to 250 centres, with 28
partner NGOs across 13 states. The foundation also has tie-ups with Microsoft's for the latter's Microsoft Unlimited
Potential programme, where candidates are given basic IT skills training in rural and remote areas of India. Two
years ago, they started offering this course to the urban poor, for a fee of up to Rs 500. "At least 6-7% of our centres
are now in urban areas, though most are in villages," says Rumi Mallick, associate vice-president, programmes,
Nasscom Foundation.

Till date, Nasscom Foundation, through its various NGO partnerships, has trained over 24,000 youth in rural and
semi-urban areas. The network plans to skill 10,000 youth in basic IT and IT-related skills over the next three years.
Keeping the programme going, particularly in conservative communities, hasn't been easy. Nasscom's Hyderabad
centre shut down after a year, as it was a challenge placing the girls in the job market, in a milieu where women are
not allowed to work.

"These knowledge centres are meant for communities who have no access to such programmes. Yet, after the
training, sending them out to work is a hurdle," says Mallick. Hopefully, in time, success stories will turn the
situation around.

Have you ever imagined what India will look like 20 years down the line?

From the start of this Millennia, India is growing in stature and every country in the world is
noticing it. Do you know the reason why India is becoming a force to reckon with ?

Just for a comparison sake, I look at India as a startup – A startup whose time has come to make
it big. Right now people are noticing the smaller achievements here and there. It is slowly
coming on everyone’s radar and they are slowly understanding its potential – They understand
the role India is going play in tomorrow’s world.

The key to India’s growth will be its growing Middle class population – primarily the population
that is moving from Rural India to Urban India. McKinsey Global Institute has some out with a
report called “India’s Urban Awakening” which gives you some numbers on where India can
potentially be 20 years down the line on back of rapid pace of urbanization that India is
witnessing.
India 2030
Urban Population

India’s population will reach 1.47 billion with around 40% urbanization – That means close
to 590 million will be living in cities.

Urbanized States

5 states in India will have more than 50% of their population living in cities – Tamil Nadu,
Gujarat, Maharashtra, Karnataka & Punjab
India’s scale of urbanization will be immense – India will have 68 cities with population more
than 1 million, 13 cities with more than 4 million people and 6 megacities having
population more than 10 million residents !

Per Capita Income Increase

The per capita income will see a four-fold increase over next twenty years – From an average per
capita income of 35000 rupees to 1,36,000 rupees by 2030.

There are many other interesting numbers in the report prepared by MGI, you can download
the report from here.

Now, these are achievable – infact, India can even have accelerated growth, but the key to all this
growth is also the investment that need to go into facilitating this growth – The report says that
India will need a whooping 1.2 trillion USD investment in next 20 years, especially in
infrastructure.

Close to 2.5 billion sq. mtrs of road and 7,400 kms of metros and subways will have to be build
over the course of next 20 years.

We are lucky to be in India right now and witnessing this frantic pace of growth !