The Future of Internet Content Consumption in India | Zinnov

THE FUTURE OF
INTERNET CONTENT
CONSUMPTION IN INDIA
FRICTIONLESS CONSUMER EXPERIENCE FOR MOBILE-ONLY INDIA AND BHARAT

01THE CURRENT STATE OF INDIAN MOBILE ECOSYSTEM
PAGE 6
00EXECUTIVE SUMMARY
PAGE 5
02CHANGING PARADIGM OF CONTENT CONSUMPTION
PAGE 11
03THE DISRUPTION IN CONTENT CREATION AND CURATION
PAGE 17
04THE ROLE OF ECOSYSTEM LEVERAGE AND COLLABORATION
PAGE 24
05CONCLUSION
PAGE 26

Use of mobile phones in India is no longer an urban
phenomenon. India has almost 1Bn [1]
active mobile
users currently, of which 40%[2]
are from rural India.
Over the last decade, with the surge of mobile
Internet users in India, there has been a consequent
influx of global and local players in the Indian market.
Also, consumers have started displaying unique
online content preferences. This whitepaper on “The
Future of Internet Content Consumption in India”,
discusses the key enablers of this changing consumer
behavior and the need for a frictionless experience.
The whitepaper covers the current state of the Indian
mobile ecosystem and the persona of Internet users
across the nation. The whitepaper also elucidates the
correlation between changing paradigms of content
consumption and creation, as India rapidly evolves to
become a mobile-only nation. It further analyzes the
supply side of the ecosystem such as smartphone
manufacturers, marketers and content publishers,
and includes the key strategic initiatives by the
companies to address the evolving preferences of the
consumers with respect to online content. Special
emphasis has been given to the emergence of
innovation-first platforms and consumer-first
platforms and their role in helping ecosystem entities
monetize beyond current capabilities.
PREFACE

To understand the evolving landscape of the mobile ecosystem in India, a combination of primary and
secondary research was employed. This included one-on-one interactions with stakeholders across the
mobile ecosystem and personal interactions with consumers across more than 10 cities in India. The
personal interactions with users were targeted to understand the user behavior and preferences for online
content when accessed through smartphones. Through this we were able to understand the consumer’s
preference in terms of online content and were also able to assess the challenges and the current state of
mobile ecosystem entities in India
Primary Research
Secondary Research
To support the findings of primary research and obtain more insights on the qualitative and quantitative
aspects of the mobile ecosystem in India, multiple secondary sources such as government-funded telecom
reports, industry association reports, surveys, and news articles were leveraged. Individual data sources are
mentioned as footnotes throughout the report, wherever applicable.
The report will benefit the following ecosystem entities:
RESEARCH
METHODOLOGY
04 RESEARCH METHODOLOGY
Marketers who heavily focus on mobile-first strategy for brand marketing and are facing
challenges in brand recognition and discovery
Original Content Publishers such as news publications, original videos and games developers,
who find content discovery a major pain point
Smartphone Manufacturers who want to understand the opportunity for tapping into the mobile
Internet ecosystem
Content Aggregators who want to understand the evolving consumers’ demands and the winning
imperatives for the future
Cities with population more than 3 Million were categorized as Tier 1, cities with a population between 100,000 and 3
Million were categorized as Tier 2, and cities with population less than 100,000 were categorized as Tier 3.
INDUSTRY
ECOSYSTEM ENTITIES
PROFILES
Marketers
Smartphone
Manufacturers
Content
Publishers
Social Media
Platforms
E-commerce
companies
VP of Product, Head of Marketing, Head
of Customer Experience, Head of Content
Creation, VP- New Accounts
SMARTPHONE
CONSUMERS
510
smartphone
users
Mode-
Personal Interactions
and written survey
Tier 1, Tier 2,
Tier 3 cities
Age Group
18-35

EXECUTIVE
SUMMARY
India is on its path to becoming a mobile-only nation: More than 97%[3]
of total Internet users access
it through their mobile phones in India and with Internet access gaining more prevalence across rural
India, the country is rapidly evolving to become a mobile-only nation
New and unique content preferences emerging from the next high growth area – rural India: Internet
adoption in rural India has increased by a remarkable 35% in 2018 in comparison to single digit growth
in the Urban India[4]
. Most of these users access the Internet for the first time through mobile phones
and therefore present unique preferences in terms of content variety, language, and format
Consumer behavior is evolving across Urban and Rural India as they become more discerning with
content preferences: Mobile Internet users across the country have started exhibiting clear content
preferences with respect to online content
Content platforms are leveraging the accelerated content demand of 3Vs – Variety, Vernacular, and
Video-first content for growth: Indian platforms such as Glance and Dailyhunt are exemplifying the
union of the 3Vs with original and aggregated video content in regional languages along with a variety
of offerings such as news and games as well.
India is catching up on the trend of ‘Intersection of Content and Commerce’: Platforms such as
Instagram and Glance enable marketers to sell their products on their platforms, allowing a new
business model, based on a content-commerce intersection to take shape.
Innovation will be a key differentiator in bringing disruption and acquiring new and unique users:
Innovation in content creation, business, and delivery model are becoming imperative for both global
and Indian players to sustain and grow in the dynamic Indian mobile space. Glance is one such platform
that is built on the foundation of innovation.
Mobile ecosystem entities in India are collaborating with curated content platforms to address key
pain points: : Partnership with content platforms is expected to help ecosystem entities such as
smartphone makers, marketers, and content publishers to address some of the prominent challenges of
content discovery, distribution, and monetization.
With the smartphone user base set to cross the 800 Mn mark by 2022[5]
, India is expected to soon
transform to become a mobile-only nation. In the last decade, consumer behavior and preferences
towards mobile usage have evolved drastically and this trend will continue till mobile phones and the
Internet become ubiquitous. ‘Frictionless Content Experience’ is defined as the emerging consumer
preferences with respect to the availability of online content that is relevant and easy to access, and is
available in a mobile-first, beautiful, seamless, and preferably in a video-based format. This is the most
significant shift in consumer behavior that has been observed among mobile users across urban and
rural India, when engaging with online content in the last one decade.
05 EXECUTIVE SUMMARY
Source: Consumer Survey, Primary Interactions and Zinnov Research Analysis
• 430 Million 4G users in 2018[6]
• 68% preferred video based content over text based mobile content
• >70% selected Tamil and Kannada as their preferred language
• 30% preferred recommended content over search based
• >65% encountered high frequency of fake news across social media platforms
• 76% of the survey respondents chose mobile phones for accessing
online content over desktop and other platforms
High speed and affordable
internet
Mobile First Content
Vernacular, Video
and Variety
Personalisation and
Moderation
3V
Evolving Consumer Demands in the Indian Mobile Ecosystem

01THE CURRENT STATE
OF INDIAN MOBILE
ECOSYSTEM

07 THE CURRENT STATE OF INDIAN MOBILE ECOSYSTEM
During the course of this research and personal interactions with mobile users, the key ecosystem entities
as perceived by the consumers, were identified and have been represented in the image below. The scope
of this whitepaper is limited to Content and Gaming Platforms, Marketers, and Smartphone Manufacturers
and their role in the ecosystem is elucidated across different sections of the report.
Content and Gaming
Platforms
Telecom Providers
Mobile
Consumer
in India
E-commerce
Platforms
THE MOBILE ECOSYSTEM
IN INDIA
Smartphone
Manufacturers
Service
Platforms
Marketers

Mobile-first refers to the preference of using mobile phones over other devices for accessing the internet.
Smartphone adoption in India stood at approximately 39% as of 2018[6]
, making it the second-largest
smartphone user base globally. This is attracting global behemoths to invest and capitalize on the
foundation of scale in the country. Each entity of the mobile ecosystem has been actively contributing to this
transition by introducing mobile-first and more recently mobile-only experiences to increase user
engagement. For instance, OTT platforms such as Netflix, are introducing ‘mobile-only’ weekly plans in
India, owing to the increasing traffic from smartphones on the platforms.
Smartphone manufacturers have also made it easier for consumers to purchase a smartphone with a
substantial fall in the average cost of smartphones from 2010 to 2019, resulting in a growth that led to a
smartphone user base of over 500Mn[7]
in India (as of 2018). Similarly, the following image showcases some
other factors from the mobile ecosystem’s perspective that are propelling the transition of India from a
mobile-first to a mobile-only economy.
EVOLUTION OF INDIA FROM MOBILE-FIRST
TO A MOBILE-ONLY ECONOMY
Mobile Ecosystem Entities are Enabling the Mobile-Only Shift in India
1.1
Active Government Involvement
Increasing affordability of internet
Smartphones becoming affordable
Adoption of mobile-only business models
Increasing focus on Mobile-led digital Marketing
Emergence of Cash-less economy
30+ govt. funded mobile
apps launched since 2015
200+ Mn to 900+ Mn 4G
subscribers from 2017-2022
500+ Mn to 800+ Mn Mobile
Internet Users form 2018- 2022
Entry level smartphone: ₹12000 in
2010 to ₹3000 in 2018
530+ Mn to 860+ Mn Smartphone
Users from 2018- 2022
Customizing business models for the
Indian mobile content consumers
Netflix and Zee5 have recently launched
‘mobile-only’ plans only for India.
47% to 67% increase in share of mobile
advertising of total digital advertising
budget, 2018-2021
INR 5,102 crore to INR 16,718 crores
increase in advertising spending on mobile,
2018-2021
15+ in-house mobile wallets
introduced since 2016
Mobile based transaction value
increased- INR 9.8 Tn
to INR 18 Tn from 2016-2018
Launch and Promotion of
Digital India Initiative
Source: Zinnov Research Analysis
Advent of on-demand economy
On –demand platforms such as Uber,
Urbanclap and Zomato are witnessing
increase in mobile-traffic
Launch of Progressive Web App
(mobile version of website)
by Ola and UC.

THE 4G BOOM AND THE ANTICIPATED 5G DISRUPTION
1.2
3. Fuelling transition to become Mobile Only India
With 5G, browsing and downloading speed are expected to be as high as 10GBPS and mobile content
consumption can be foreseen to increase manifold, particularly across rural India. Video content will be
the category that will be most impacted, followed by games and e-commerce.
5G continues to be the strategic pivot for telecom and OEMs in India, with wide-scale rollouts expected
by early 2021. The proliferation of 5G based connected devices, mobile apps, and remote operation is
expected to be a key driver for India to transition into becoming a Mobile-Only nation in the next
decade.
Potential to leverage mobile Internet across urban and rural populations across sectors such as Smart
Agriculture, Smart Cities, Smart Manufacturing, Smart Healthcare, and Smart Education
3 ways in which 5G will impact the mobile ecosystem in India
1. Digital India
2. Surge in content consumption through mobiles
According to the Department of Telecom (DoT), the price of mobile internet plans has dropped by 93%[8]
between 2014 and 2017, consequently resulting in a 25X surge in data usage in the same period. India
currently has the lowest-priced data plans globally and this trend is expected to continue to boost the
stupendous growth of mobile Internet users in the country. It was in the year 2016 when India saw a rise in
the global mobile Internet consumption with the introduction of Jio. Reliance made an early stride in the
Indian mobile ecosystem by leveraging the price sensitivity and the potential of user scale. Over the next 2
years, Jio was able to record a user base of 280 Mn[9]
as of 2018, making it the number 1 telecom provider
in the country. With this breakthrough, 4G in India was able to reach the masses, enabling customers to
explore the mobile Internet space.
The next wave of innovation is expected to initiate in the middle of 2020 with the launch of 5G in India. The
potential of scale, benefits, and India’s readiness for 5G proliferation is still largely theoretical, however, its
impact on the mobile ecosystem in the country is much anticipated. While India continues to be among the
top markets for content platforms and mobile apps globally, the introduction of 5G is expected to open new
avenues in terms of innovation, production, and consumption of online content.
4G User Base in India is Expected to Reach 900 Million By 2022
1
87
238
432
600
710
800
890
2015 2016 2017 2018
4G User Base in India (Million)
2019(p) 2020(p) 2021(p) 2022(p)
CAGR
(2018-2022)
20%
1Msubscribers
milestone in
2015
annual
increase from
2016 to 2017
170%
of users from
rural India in
2018
30% increase in data
usage from
2016-2018
25X

10 CHANGING PARADIGM OF CONTENT CONSUMPTION
THE PERSONA OF INTERNET USERS
1.3
Internet usage behaviour in India is undergoing a profound transformation with an increasing number of
people opting for mobile phones as a preferred device. The consumer survey conducted for 500+
smartphone users across India also revealed that more than 76% of respondents prefer mobile phones for
accessing online content over desktop and other devices. The last 5 years have brought about a paradigm
change in the persona of Internet users, surfacing unique preferences with respect to internet usage and
accessing content online. Purchasing a smartphone has now evolved from being a luxury to more of a
necessity with increasing momentum across Tier 3 cities. Moreover, the availability of free content in the
form of videos, news, games, and social media is attracting several smartphone users from Tier 2 and Tier
3 cities as well. The following visual summarizes the key findings from the consumer survey, highlighting the
evolved persona of internet users in India.
Unique preferences are surfacing with the changing persona of Internet users
Survey
Question Intent
Key
Insight
Facts
from Survey
Preferred
platform for
online content
consumption
Mobile is a preferred platform even in
Tier 3 cities, which is evidence of the
fact that it is no longer a luxury
Tier 1 - 65%
Tier 2 - 81%
Tier 3 - 80%
80% of the smartphones users check
their phone as soon as they wake up
Checking
phones on
waking up
Tier 1 - 90%
Tier 2 - 81%
Tier 3 - 78%
Tier 1 - 78%
Tier 2 - 75%
Tier 3 - 62%
Low app retention in Tier 1 and Tier 2
cities. High chances of disabling, if app
experience is not relevant
Disabling a
complicated app
Vs willingness to
understand it
Late night (10 PM onwards) is the most
preferred time of the day for video
based consumption, particularly among
the age group of <25 and 25-35 years
Preferred time of
the day, for video
based content
consumption
<25 years 25-35 years >35 years
49%
40%
11%
43%
4%
53%
29%
46%
25%
Late Night (10PM onwards) Evening (5-10 PM) Rest of the day
Shopping through social media
platforms is gaining traction across
lower income groups, particularly
across Tier 2 and Tier 3 cities
Preference of
shopping through
social media
platforms
5 to 10 LPA
>10 LPA
31%
29%
38%
1 to 5 LPA 40%
Working Professionals
Students

02CHANGING PARADIGM
OF CONTENT
CONSUMPTION

APPROACHING THE MOBILE FIRST UBIQUITY
2.1
A Day in the Life of A Smartphone User
The increasing preference for mobile-first experience is taking a concrete shape as content consumption
transforms from TV to videos on-demand through OTT, from newspapers to consolidated news apps, from
Play Stations to mobile games, and from offline stores to e-commerce mobile apps. Particularly in rural
India, more than 1/3rd of the total population accesses the internet for the first time through their mobile
phones, introducing new preferences for mobile-first online content. In urban India, smartphones have
already become an integral part of the users’ life with an app available to meet even the most basic needs
today.
According to the consumer survey, more than 80% of the respondents check their phones as soon as they
wake up, either to check updates on social media, to skim through their emails or to analyze their sleep
patterns through their smartphone-based sleep tracker apps. Based on the consumer survey responses and
analysis, the following image represents a day in a smartphone user’s life.
Late Night
Uses OTT apps for
movies and TV
shows
6AM - 9AM
>85% of them check emails and
social media updates
>70% of users check
news regularly during
the morning hours
9AM - 12PM
Engage with music content
and food ordering apps
12PM - 4PM
Quantity:
01
Coffee
Quantity:
00
Pan Cake
ORDER
OUR RESTAURANT
7PM - 10PM
Food and Grocery ordering
Educational apps are
accessed
4PM - 7PM
Users ‘binge watch’ content
during commute

Right from ordering food through Swiggy and Zomato to getting a cab at the doorstep through Ola and Uber,
consumers are showing a heavy inclination towards using on-demand services. The advent of the
on-demand economy in India is also evident from the increasing demand for household and personal
grooming services through apps such as UrbanClap and Pick My Laundry. A more recent introduction to the
group is the express grocery delivery through apps such as Big Basket and Amazon Prime Now. However, it
is the ‘Video-on-demand’ which has witnessed the most accelerated growth in the country.
On-demand content for entertainment is inclusive of music and video content platforms driven by
subscription-based and advertisement-based business models. While there are a handful of music
streaming OTT (Over the top) Service Providers in India, such as Gaana, Amazon Music, and Spotify, the
market is currently dominated by video-driven platforms such as Hotstar, Zee5, and Netflix among others.
Inspired by quality content and popular web series from the west, the demand for premium content has seen
a steep increase in India, which opened doors for International platforms such as Netflix and PrimeVideo,
particularly in the urban sectors. However, the overall growth of the market is being attributed to Indian
platforms such as Hotstar and Zee5, which are capturing the regional language quotient in the country and
have together acquired more than 350Mn subscribers as of 2018. Moreover, the preferred device to
consume this content is largely mobile phones, particularly in rural areas, where the share of first-time
Internet users is rapidly increasing.
Entry of Multiple Companies in the Last Decade is Boosting the On-Demand Economy in India
THE ADVENT OF ON-DEMAND ECONOMY
2.2
Travel & Hospitality
Food Delivery
Healthcare
Professional Services
E-Commerce
Entertainment
2012-132010-11 2014-15 2016-17 2018-19

With multiple platform options available for the users to choose from, the competition is becoming
extremely fierce. Retaining online content consumers is particularly becoming challenging. However, the
writing is on the wall - consumers today are showing preference for more regional, diverse, and video-based
content.
SHIFTING CONSUMER DEMAND TOWARDS VERNACULAR,VIDEO-FIRST AND
VARIETY FOCUSSED PLATFORMS
2.3
VIDEO-FIRST
VERNACULAR
VARIETY
The exponential growth of online streaming platforms
in India is a testament to the emerging demand for
video-heavy mobile content. This shift in online
content preference became more pronounced in
2018, with the accelerated growth of user-generated
content platforms such as TikTok and curated
platforms such as Glance. Such platforms constitute
of short-form video content (<2 minutes) and
leverage the binge-watching phenomenon. This has
just begun gaining traction across India, particularly
in Tier 2 and Tier 3 cities.
With over 22 languages being spoken across the
country, especially by the masses, preference for
content in regional languages has increased
substantially over the last 5 years. The total
English-speaking population in India is roughly
10-12%, which is evidence of the fact that a dominant
share of India population is more comfortable
consuming content in their regional languages. From
end user’s perspective, Youtube, Hotstar, and Zee5
have been the most preferred online streaming
platforms for video based regional content followed
by text-driven platforms such as Inshorts and
Dailyhunt. As per the survey, language preference for
mobile content was dominated by vernacular
languages like Hindi, Punjabi, Telugu, Tamil, Kannada,
and Marathi the survey had a sample bias toward
southern, central and north India.
Another evolving consumer preference is the
availability of variety, which refers to the genre of
content that the users can choose from while
consuming online content. Music, Entertainment,
Lifestyle, Games, Travel, and Sports for instance, are
the most preferred content categories in the current
scenario. In terms of online content variety, the
survey respondents were asked to choose from
among 14 content variety options. As per the
responses, 7-8 categories including lifestyle, sports,
entertainment, gaming etc. were preferred by more
than 2/3rd of the respondents, which suggests that
consumers seek options of having all the options on a
single platform and don’t feel restricted
The Emerging Online Content Preferences of
3vs- Video, Vernacular and Variety
prefer video
based content
over text based
68%
prefer watching
videos of <2
minutes of
duration
55%
prefer regional
languages over
Hindi and English
70%
opt for platforms
which have more
variety available
>70%
68% 68%
76%
Tier 1 Tier 2 Tier 3
61%
74%
93%
78%
67%
54%
61%
53%
34%

The frequency of inappropriate content, incidents of hate speech, and violence on social media platforms
has been increasing at an alarming rate in India. Moreover, the circulation of fake news across such
platforms, particularly WhatsApp is yet another issue which is becoming a concern for the modern-day
mobile users in India. Platforms such as TikTok and Instagram were recently been brought into light for
failing content moderation policies and the government had to intervene to enforce more stringent content
rules and policies, so that consumers can engage with the app safely. To address these challenges, online
content platforms have started leveraging technology, particularly Artificial Intelligence (AI), to identify
inappropriate content and immediately flag it to be removed from the platform. TikTok, after its recent ban
is said to use AI aggressively for its content moderation. Local platforms like Glance, heavily rely on AI for
both content creation and curation.
An emerging, yet crucial consumer preference for online content is personalization. During personal
interactions with consumers as a part of the survey, more than 30% of the respondents revealed that they
prefer recommended content over the option of searching for content. E-commerce platforms have been
early initiators of a personalized app experience for users, where they get recommendations based on their
past shopping experiences. Content platforms are also now catching up this trend. YouTube and Netflix for
example, shows recommendation of new content based on user’s past preferences and platform
experience. Even local platforms have now started using advanced data analytics coupled with AI to offer a
personalized platform experience to the users.
PREFERENCE FOR ONLINE CONTENT MODERATION AND
PERSONALIZATION ON THE RISE
2.4
Mobile Users Demanding Moderated and Personalized Content Platform Experience
60%
prefer
professionally
generated
content over
user
generated
content
36%
preferred
recommended
content over
searching for
content on
online
platforms
65%
have
encountered
high frequency
of fake news
when using
social media
platforms

THE EMERGING DEMAND OF FRICTIONLESS CONTENT EXPERIENCE
2.5
As mobile phones gain prevalence, customer delight is becoming the most crucial aspect of long-term
engagement with a mobile app. Especially in India, customer delight becomes even more vital as
smartphone users have almost 50 apps on an average and only 40-50% of these are used regularly [10].
This
usage pattern, which is representative of consumer internet experience on mobile, is limited by friction that
limits seamless content consumption on mobile. This friction exists across multiple dimensions:
Platforms which can deliver Frictionless Content Experience are more likely to attract a disproportionate
number of users and retain them in the long run.
Entering the Era of Frictionless Content Experience in India
Our survey reveals that consumers are looking for content that is
relevant to them, is in their local language, is preferably in video
instead of text, is short-form, does not require searching or
browsing, and is easily accessible. We call this Frictionless Content
Experience.
Access
Opening the right
app or website
receiving information
seamlessly without any
extra effort
vs
Discovery
receiving
recommended and
curated content
Having to browse
or search
vs
Relevance
content personalized
based on consumer’s
interests
Generic content vs
Language
English, which is spoken
by only 10-12% of the
population
local languagevs
Format
Reading text which
requires higher level of
cognitive effort
watching a videovs
Duration
short snackable easy to
consume information
Long format content vs

03THE DISRUPTION IN
CONTENT CREATION
AND CURATION

The Current State of Quality Vs Scale of Top Content Platforms in India
18 THE DISRUPTION IN CONTENT CREATION AND CURATION
THE ROAD TO ACHIEVING QUALITY AND SCALE PARITY
3.1
f(Daily Active User Estimates)
f(ContentModerationLaws,ProfessionallyVs.
UserGeneratedContent)
Quality
Scale
Scale First-
User Generated Content
Quality First-
Premium Content
Sweet Spot
Quality @ Scale
In a country like India, where all content strategies pivot
around scale, consumers are increasingly questioning the
quality of content and its moderation. The growth of
diverse content platforms on a global level has given rise
to the need for striking a balance between the availability
of quality content and the scale of users who are
consuming it. Companies such as TikTok, Facebook,
YouTube, and Instagram have grown because of their
Scale-First approach by riding on the massive volume of
free content that was provided by their users. But content
consumers today, are very discerning. The propagation of
fake news on user-generated content platforms is a key
concern for the increasing number of consumers. This is
leading to greater adoption of platforms that deliver a
moderated content experience. Consequently, the shift in
consumer preferences has been leveraged by leading
OTTs such as Netflix, Prime Video, and Hotstar, who are
targeting consumers with their Quality First approach.
The way Indian consumers access the internet has transformed at the core. While a decade ago, there was
broadband and a PC, today there’s 4G on mobile handsets. It was after 2015 that the internet traffic from
mobile started dominating over PC traffic; 4 years later now, mobile internet traffic is ruling the roost in India.
Apart from the mobile users propelling the mobile-first to mobile-only transition, the supply side has also
been contributing significantly. There has been an overwhelming inflow of mobile apps for e-commerce,
gaming, online streaming, and education, and India has become one of the largest consumer-bases that
access this content on mobile.
This section discusses the key initiatives by the supply side in the ecosystem that enable Frictionless
Content Experience, the challenges that are faced by these companies, and the impending disruptive forces
that will affect the companies of today and tomorrow.
To maximize for both scale and quality,
quality-first platforms such as Netflix and Zee5
are aggressively spending on acquiring new
users and scaling their subscriber base, while
on the other hand, scale-first platforms such
as YouTube are investing in original content
through premium subscriptions. Local
platforms like Glance initiated their journey
with a ‘Quality at Scale’ approach wherein they
are set up to deliver quality content at scale.
The following framework showcases the
analysis of the top 15 content platforms in India
across different categories. While quality was
analyzed based on moderation laws,
family-safe content, moderation statistics, and
dominance of professionally generated
content, the scale was derived as a function of
the platform users.

Quality content (curated)
Mass content (non-curated)
Size of circle denotes relative scale
of video content on the platform
f( Vernacular Content Options | Vernacular Options for accessing the platform)
f(Varietyofcontentavailable)
Variety
Vernacular
L
L
M
M
H
H
Video, Vernacular, and Variety: The 3V Mantra of Winning Indian Mobile Consumers
THRIVING ON THE 3V MANTRA- VERNACULAR,VIDEO,AND VARIETY
3.2
The following framework showcases the relative
positioning of leading content platforms and their
current focus on the 3Vs. Investments in regional
start-ups and producing content in regional
languages have also surged in India. Indian OTT
players have collectively set up a budget of INR
3300 Cr[10]
to produce content in Hindi and other
regional languages. Moreover, these platforms
are attempting to increase the variety of content
across their libraries, by adding games and news
across their platforms. Zee5 and Hotstar for
example also have an option of viewing news in
regional languages, while Facebook and Glance
have options of gaming for users.
Another emerging, yet crucial preference from
consumers is the availability of diverse and regional
content, preferably in a video-heavy format. As a part of
the survey, when consumers were asked about their
preferences of mobile content, three common themes
emerged - Video, Vernacular, and Variety (3Vs). While
non-curated platforms like Facebook and YouTube have
been able to leverage the power of user-generated
content (UGC) to have a variety of video content at
scale, curated OTT platforms like Hotstar and Zee5
have been focusing more on creating vernacular video
content, albeit at a relatively lower scale. Also, there’s a
lack in the variety of content as compared to Facebook
and YouTube. Local players like Glance are looking to
bridge this gap by maximizing towards the 3Vs through
curated video content.

Quoting Mary Meeker 2019 edition of Internet
Trends Report- “Shoppability is increasingly
becoming integrated into apps and services
of every kind, offline retail is becoming
digitised, and ecommerce is reaching new
communities and demographics, all through
the mobile ecosystem”. The dominant
business models in the mobile app ecosystem
in India are transaction, advertisements, and
subscription. However, there is an upcoming
trend of platforms testing waters with
combining one or more of the above together,
the most common being the intersection of
content with commerce. Instagram for
example, is one of the most popular content
platforms in India. Brands across the country
consider the platform as a top priority for
digital and Influencer marketing. The platform
recently launched the ‘Shop’ widget in India
after tasting success in global markets. Local
players such as Zee5 and Glance have also
introduced the feature of ‘Shop the Look’ on
their platforms, following the trend. The
following figure shows the current state of
popular platforms in the mobile ecosystem
and how near they are to actualize the trend
as a viable business model.
India Catching up with the Trend of
Content-Commerce Intersection
ADDRESSING THE KEY ASKS OF THE MODERN CONSUMER-
PERSONALIZATION AND CUSTOMIZATION
3.3
CHANGING BUSINESS MODELS-CONTENT FOR COMMERCE AND
COMMERCE THROUGH CONTENT
3.4
With increasing awareness and global exposure,
consumers have started showcasing the propensity
to engage with applications that are personalized for
them and recommend content based on their
preferences. Global giants such as YouTube and
Facebook were early to capitalize on personalization
and are heavily reliant on using technologies such as
Artificial Intelligence and Machine Learning (AI/ML)
to give their users content recommendations based
on their past experiences and search history.
Apart from personalization, global and Indian
content platforms are also changing their user
acquisition strategy, pivoting around the aspect of
customization. For instance, Netflix recently
announced the INR 199 monthly plan[11]
,
only for mobile users in India. Zee5 is also testing
mobile-only plans which will be almost 30% cheaper
than regular packs. Zee5 offers language specific
monthly packs on its platforms. Owing to the
mushrooming growth of smartphone among Indian
students, Youtube launched an India specific
monthly plan for students, charging INR 79 instead
of the standard INR129 [12]. As demand for online
content from rural India is expected to increase
significantly in the next few years, customization will
gain more importance. Consequentially, price wars
will compel more content platforms to revise
subscription plans and offerings based on evolving
consumer experiences, both from urban and rural
India.
Content Platforms
Driving Commerce with Content
Commerce Platforms

INNOVATION IS THE KEY DIFFERENTIATOR FOR THE CONTENT
PLATFORMS OF TODAY AND TOMORROW
3.5
Innovation and Consumer First- The Fast Scaling Content Platforms in India
*Platforms launched in this era were predominantly desktop first. Instagram is an exception
Zee5 DAUs include projected value
DailyActiveUsers
(Million)
5
10
15
20
25
30
# of Months
Year of Launch
Wave 3
Innovation
First Platforms
Wave 2
The 4G Boom-
Mobile First Platforms
Wave 1
First Entrants-
Desktop First Platforms*
12 24 36 48 60
YouTube and Facebook were launched in India at a
time when traffic from mobile phones for accessing
the Internet was less than 10%. However, the
influence of the Western market, rising urban
population, and the introduction of 4G in India were
able to provide the impetus for these platforms to
grow exponentially post 2012. Since then, the macro
and micro factors governing the mobile ecosystem in
India have changed drastically. The key enabler of this
growth today is innovation.
In 2018, the soaring intensity of competition and the
inability to keep pace with the evolving customer
preferences, compelled multiple mobile app-based
start-ups to shut down.
Holachef, Ofo, and Tapzo among others are some of
the examples. Innovation is currently being touted
as the only differentiator in this consumer-driven
market where the shift in preferences is rapid and
the demand is largely fragmented. Innovation
around business models, consumer experiences,
and marketing can help companies stay in the race.
Over the last 2 years, India witnessed the entry and
growth of multiple innovation-first platforms such as
Glance, TikTok, and Helo among others. The
following chart represents how content platforms in
India have evolved in the last decade to become
innovation-first platforms.

During the research for this whitepaper,
more than 20 content platforms, both
global and local were studied extensively.
In India, where global behemoths like
Facebook and YouTube continue to be the
dominant forces, the growth of local
players has been compelling.
Glance by InMobi is one such platform which has been
registering phenomenal growth since its official launch in
2018, fueled by innovation and a deep understanding of Indian
consumers. The following chart illustrates how the growth of
global platforms such as Facebook and YouTube began to
stagnate, while Glance recorded a 5X growth and acquired
30Mn active users in the last year.
The Extraordinary Growth of Innovation-first Platforms
Global Content Players
Indian Content Players
IndexedDAUs
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
Q3’18 Q4’18 Q1’19 Q2’19
ShareChat
Glance
Inshorts
Dailyhunt
Facebook
Instagram
Youtube
TikTok
Daily Active Users (DAU) growth - as a multiple of Q3'18 DAUs Growth
5.0X
3.1X
2.7X
2.5X
2.0X
1.4X
1.2X
1.1X

Glance is an example of a platform delivering Frictionless Content Experience. Referred as Screen Zero by
the parent company - InMobi Group, Glance delivers AI-driven personalized content to users on their
smartphone lock screens. The following figure represents how Glance enables this experience.
Glance’s strategy and tactics, tailor-made for a mobile-only world, hold a few vital lessons for other
ecosystem players that are looking to enhance the consumer experience for attracting and retaining users.
A UNIQUE COMBINATION OF INNOVATION-FIRST AND CUSTOMER-FIRST
APPROACH: CASE IN POINT- GLANCE
Glance Enables Frictionless Content Experience
Seamless Content
Discovery- Recommended
content-based platform
Availability of Vernacular
Content-5+ regional
language options
Ease of Access of
Content- Smartphone’s
Lock screen
Offering Relevant
Content-Highly curated
and personalized platform
Engaging content
format-High focus on
video-based content
Snackable video
content-Videos of
<2 minute duration
Glance’s strategy to partner with
smartphone manufacturers enables
massive reach and access to existing
and next set of internet users across
both urban and rural India.
The platform’s approach of
snackable video content (less than 2
minutes duration) - helps keep its
users engaged.
In a world of fake news, Glance’s
approach of personalized and
curated content will help it
differentiate itself further.
Finally, Glance is pushing the innovation
frontier by bringing content and
commerce together through its ‘Shop
The Look’ feature.
Presence on the lock screen as a
native feature of the phone enables
easy access and discovery of
information for consumers without any
extra effort.
It has built a large and engaged user
base on the back of this innovative
distribution strategy by focusing on
video, vernacular and variety for
content.
1 2 3
4 5 6

04THE ROLE OF
ECOSYSTEM LEVERAGE
AND COLLABORATION

There are clear signs of increasing collaboration between these ecosystem entities. For example, original
content creators having their Youtube channels have started partnering with brands to have their products
natively integrated into the content. Marketers have realized the value of branded content and partnering
with influencers on platforms like Instagram to create original content created where their brands are
featured. Another prime example is how smartphone manufacturers have partnered with Glance to have it
integrated as a native feature of the phone. This platform can also be leveraged by both content creators
and marketers for reaching out to consumers and in turn will mutually help each other to grow and evolve.
25 THE ROLE OF ECOSYSTEM LEVERAGE AND COLLABORATION
The key pain points for select mobile ecosystem entities in India
OEMS
MARKETERS
CONTENT
PUBLISHERS
Industry Stakeholders Viewpoint
As mobile internet is becoming prevalent
in India, how can we capitalize on this
growth remains a key ‘unanswered’
question
VP, Product | India’s leading
smartphone OEM
Everyday we write brilliant pieces of content
and everyday we see them going unnoticed
among thousands of content pieces online.
Getting visibility is increasingly becoming a
challenge
Sr. Editor | India’s leading new age
content publisher
Our new products often get lost in the
most competitive sector of India, FMCG.
Though digital marketing is gaining
traction, but to what extent can we reach
the masses?
Head of Marketing | India’s leading
FMCG Brand
Ecosystem Entities-Key Pain points
Fixed business model-scope to generate revenue ends
with product purchase
Need of upselling products to existing customers
Unable to capitalize on the mobile internet boom in India
Low brand discovery
Reducing attention span,crowded media space and ad
blindness
Limited content distribution
Decreasing retention of readers on mobile app
As a market having the second largest mobile subscriber base globally and on course towards becoming a
mobile-only nation, the mobile ecosystem in India provides significant scope for collaboration between
different players. During the course of this study we interacted with multiple ecosystem entities, however,
significant scope of collaboration emerged prominently for the following ctageories:
Content creators - With evolving consumer content preferences, they hold the key to creating the right
content that attracts and engages users. At the same time, they also need the right channels to ensure that
their content gets the desired visibility and reach.
Marketers - With consumers being mobile-first, marketers have increasingly started leveraging mobile as a
channel to gain the desired visibility and awareness from their brands. As the ecosystem continues to evolve
rapidly, they are always on the lookout for more innovative means for reaching out and engaging with
consumers.
Smartphone Manufacturers - Traditionally smartphone manufacturers have primarily been on the hardware
side in mobile ecosystem and have not actively leveraged the rest of the ecosystem. But there have been
recent trends wherein they have started to expand their offerings beyond just the hardware and that creates
interesting opportunities for other players.
We did a further deep dive with the stakeholders from the above categories and the following challenges
emerged:

27 CONCLUSION
Internet users have a paradox of choice. The volume and variety of content available online is massive,
and yet consumers do not get relevant content easily. At the same time, availability and affordability are
driving an increase in the number of internet users in India and the number of minutes spent online. The
life of Indian citizens, as is the case elsewhere, is increasingly going online - be it shopping,
binge-watching video content, playing mobile games, ordering food, booking a cab, or transacting
through mobile payment apps.
The mobile-only evolution of India is also reflected in changing consumer preferences when it comes to
content. There is a latent demand for Frictionless Content Experience which content platforms need to
fulfill. But it is not only content platforms that need to adapt to these changes in consumer preferences.
Telecom players, smartphone manufacturers, service providers and marketers need to change the way
they approach the mobile-only Indian consumer.
How will the next 5 years look like for the
mobile ecosystem in India?
Innovation in discovery and delivery of personalized content
Majority of first-time internet users in India will come from Tier 2 and Tier 3 cities. They will be
less tech-savvy as compared to the current set of users, so innovation will hold the key in
driving content discovery at scale. Personalization of content will be critical as these users
prefer good quality recommended content that matches their interests.
Video, Vernacular and Variety of content for attracting and retaining users
With declining cost of internet access, introduction of 5G, and changing consumer preferences,
consumption of video content will continue to grow at a rapid pace. Platforms will go beyond
English and invest in creating vernacular content across a spectrum of genres to tap into the
diversity of languages and user interests, especially in Tier 2 and 3 cities.
Content and commerce will converge to create a dominant
monetization mode
With content driving reach and consumer engagement, marketers will increasingly ride this
wave of content consumption to reach consumers and influence purchase. Content platforms
will evolve into transaction platforms by creating user experiences that enable product
discovery and seamless purchases of the same.

28 CONCLUSION
REFERENCES
1. https://main.trai.gov.in/sites/default/files/PR_No.22of2019_0.pdf
2. s://cms.iamai.in/Content/ResearchPapers/2b08cce4-e571-4cfe-9f8b-86435a12ed17.pdf
3. https://cms.iamai.in/Content/ResearchPapers/2b08cce4-e571-4cfe-9f8b-86435a12ed17.pdf
5. https://www.assocham.org/newsdetail.php?id=7099
6. https://www.statista.com/statistics/467163/forecast-of-smartphone-users-in-india/
7. https://www.assocham.org/newsdetail.php?id=7099
8. https://twitter.com/DoT_India/status/979344903795826693/photo/1 Department of Telecom
Twitted this, and all the articles used… Hencee I gave the link to the twitter handle
9. https://main.trai.gov.in/sites/default/files/PR_No.22of2019_0.pdf
11. https://inc42.com/datalab/indias-growing-regional-language-user-base-driving-up-
investments-in-ott-streaming-space/
12. https://techarc.net/techinsight-india-app-engagement-is-on-the-rise/
13. https://www2.deloitte.com/content/dam/Deloitte/in/Documents/technology-media
-telecommunications/in-tmt-predictions-2018-noexp.pdf
14. https://www.netflix.com
15. https://www.youtube.com

The Future of Internet Content Consumption in India | Zinnov

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