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Digital Media: Transition to On-Demand Content


Media consumption across the globe is increasingly happening in digital formats. The increase in the number of devices capable of supporting digital media along with increasing, internet access speed has provided consumers with an option to access the media content of his choice is it information, entertainment, or social activity anytime, anywhere.

Media consumption in the US has shown a tremendous increase and has seen a significant jump from traditional media to new (digital) media.

The rise of digital media players such as Netflix, Hulu, Amazon, Apple TV, Roku, and Boxee, etc. are challenging the traditionally maintained supremacy of the television as the main entertainment hub. Source: Digital Media: Rise of On-demand Content



Online media consumption has shown tremendous growth over the past few years. Among the digital devices, mobile devices have taken over as the preferred medium of consuming online media.

The smartphone market has seen unprecedented growth in the last 5 years. Smartphone devices across the globe grew at a CAGR of 17% as compared to 9.5% growth in all mobile devices.

Smartphones crossed 2 billion mark in 2014 and are expected to reach 4.6 billion by 2019. This increase in the number of mobile devices is making it easier for consumers to access music and video content on the go.



In 2014, the smartphone mobile data traffic alone stood at 1.73 EB per month(69% of global mobile data traffic), which is expected to grow 10-fold from 2014 to 2019, a compound annual growth rate (CAGR) of 60%.


Tablet mobile data traffic will grow 20-fold from 2014 to 2019 (CAGR of 83%) to reach 3.2 EB per month. The digital on-demand content market is still evolving and the players are experimenting with multiple monetization models, the most popular ones being subscription-based and advertisement based models.


In India, currently, consumer willingness to pay for content is hindered by the rampant content piracy, however, a shift has been observed in the consumer attitude in recent times. This has been due to the various innovative product and pricing strategies adopted by OTT players.

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