User-generated content rivals OTT and traditional media in India: Accenture
According to Accenture’s annual ‘Reinvent for Growth’ report, in all scenarios presented to consumers, social media and social video platforms were consistently picked over streaming video services as the media of choice.
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Content consumption is going through a transition in India. Two-thirds of consumers in India consider user-generated content to be as entertaining as traditional forms of media, according to Accenture.
In all scenarios presented to consumers, such as “when I want something funny” or “when I want to relax,” social media and social video platforms were consistently picked over streaming video services as the media of choice.
Accenture today announced the launch of its Media Thrive Index to assess the impact of reinvention strategies on media and entertainment companies’ ability to succeed financially and strategically in an increasingly challenging industry.
According to the report, more than 35 percent of consumers in India say they struggle to navigate between different entertainment services, apps and devices while 72 percent say recommended content does not match their interests.
Nearly 65 percent of consumers in India are cancelling and resubscribing to services based on the availability of desirable content. In 2023, 63 percent of consumers in India cancelled more subscriptions than the previous year.
The Media Thrive Index is a response to the findings of Accenture’s third annual “Reinvent for Growth” global entertainment study, which surveyed 6,000 consumers across 10 countries including India about their media consumption behaviours. The study highlighted a complex landscape of challenges facing traditional media companies in which marginal strategies won’t restore them to economic or strategic health.
“While the media industry is growing, the industry players are not. This essentially means that the value is shifting elsewhere. It is amply clear that incremental actions taken with a survivalist mentality will not help media companies thrive in the future,” said Neeraj Sharma, MD and Lead for Accenture’s Media industry in Growth Markets.
“For media companies, the need of the hour is to place big bets, go where consumers want to be while exploring new avenues of growth, redefining new roles in the entertainment value chain, and tapping new sources of revenue,” said Sharma.
The Media Thrive Index assessed 50 different strategic options for reinvention, identified from a range of initiatives launched by companies and from Accenture’s own strategic analysis. The assessment found most options so far are modest adjustments, which do not substantially alter a company’s economic profile. Only radical moves show a path for legacy media companies to secure the sound financial footing needed to thrive and sustain success.
The study also found opportunities for media organisations to expand beyond traditional content offerings, including aggregation platforms and lifestyle bundles. A majority (89 percent) of consumers in India said they would be inclined to use a single app to access all their digital services across both media and non-media categories.
Additionally, Accenture projects lifestyle bundles to reach $3.5 trillion in consumer spending by 2030 with technology brands better positioned over traditional media brands to be the creators of these bundles.
