iWorld
How Digital India will foster VoD growth: Spuul Global CEO
MUMBAI: India is a market with enormous potential for digital services, and it is expected to continue to grow with a very rapid speed and much higher than many other markets in the world, as far as data traffic is concerned. In fact, some estimates suggest while the rest of the world will grow 10-12 times maximum when it comes to data traffic, India will grow 17 times.
In the West, people went from a single TV to multiple TVs and then to the mobile, but India seems to be jumping directly from TVs to watching content on their smartphones, leaning on improving mobile internet to consume digital content. TV is becoming a static screen in your living room, while consumers are looking forcustomized viewing experiences.
With a number of video on demand platforms coming together the Indian consumer is all set to enjoy a wide variety of video content as each VOD platform has something unique to offer to its viewers.
Having said that,the online video space provides a fantastic platform for experimenting with various content formats. It isn’t constrained by the economics of satellite television. A show prepared for the web, doesn’t necessarily need to be in ~30 minute slots. It could be a few minutes or a few hours. This has allowed content creators to experiment with multiple formats.
At the same time there is a clutch of factors that could play spoilsport in the near future. Despite falling costs of technology and production, producing content is prohibitive and added to that distribution costs too are significant. The state of the broadband speed remainsspotty.
A July report by Akamai, a US-based content delivery and cloud services provider, suggests that India had an average 3.5 Mbps Internet speed. Yet, it was the lowest average Internet speed in the Asia Pacific region.
On consumption of data, the report said the country is on the cusp of significant growth in data traffic driven by rising data users as well as growing data usage per user.For 2016, the number of smartphone users in India is estimated to reach 204.1 million, with the number of smartphone users worldwide forecast to exceed 2 billion users by that time.
Watching a movie of 2-3 hours could take up about 200-250 MB of data, which costs around INR 40-50. For VOD platforms to succeed in India costs of 4G have to come down drastically.The Telecom Regulatory Authority of India (TRAI) said that there are 1.06 billion wireless telecom subscribers in the country. The Cellular Operators Association of India, said, the number of 3G users in India is expected to more than double (to 330 million) and 4G to grow by over 10 times (to 42 million) from 2015 base till 2017. 4G will be a game changer in the way video is being consumed in the country.
The way consumers consume information and entertainment will change from TV to video on demand over multiple devices, but one thing that won’t is that content will continue to be king. Because how the content is consumed depends on ease, convenience of the video on demand platforms and ultimately technology will decide who gets the most viewership. India though has room for many video on demand services to survive and thrive because preferences and tastes of viewers vary from region to region.
 The writer of this article is Subin Subaiah. The views expressed here are personal, and Indiantelevision.com need not necessarily subscribe to them |
iWorld
Bill Ackman’s Pershing Square makes $64 billion bid to acquire Universal Music Group
Ackman pitches NYSE relisting plan as UMG board weighs unsolicited offer
The hedge fund has proposed a business combination that values UMG at €30.40 per share, representing a hefty 78 per cent premium to its current trading price. The offer includes €9.4 billion in cash alongside stock in a newly formed entity, with shareholders set to receive €5.05 per share in cash and 0.77 shares in the new company for each UMG share they hold.
Under the proposal, UMG would merge with Pershing Square SPARC Holdings Ltd and re-emerge as a Nevada-based entity listed on the New York Stock Exchange. The move is designed to boost investor visibility and potentially secure inclusion in major indices such as the S&P 500.
Pershing Square Capital Management ceo Bill Ackman argued that while UMG’s operational performance remains strong, its market valuation has lagged due to external factors. “UMG’s stock price has languished due to a combination of issues that are unrelated to the performance of its music business,” Ackman said, pointing to concerns ranging from shareholder overhang to delayed US listing plans.
Ackman also flagged what he sees as untapped potential in UMG’s balance sheet and a lack of clear capital allocation strategy. He added that the market has not fully recognised the value of UMG’s €2.7 billion stake in Spotify, alongside gaps in investor communication.
The proposed transaction would also result in the cancellation of around 17 per cent of UMG’s outstanding shares, while maintaining its investment-grade balance sheet. Pershing Square has said it will fully backstop the equity financing, with debt commitments secured at signing. The deal is targeted for completion by the end of the year.
UMG, however, has struck a measured tone. The company confirmed that its board has received the non-binding proposal and will review it with advisers. It reiterated confidence in its current strategy and leadership under Lucian Grainge, signalling no immediate shift in stance.
The proposal comes at a time when global music companies are navigating evolving investor expectations, streaming economics and capital allocation pressures. For Pershing Square, the bet is clear: sharpen the financial story, relist in the US, and let the music play louder in the markets.
Whether UMG’s board is ready to change the tune remains to be seen, but the spotlight on its valuation just got a lot brighter.
