Monday, December 28, 2015

The 4G era: Will it change the game for media firms?



The data party just began. Earlier this month, Vodafone launched its 4Gservice in Kerala. This Sunday, Mukesh Ambani-controlled Reliance Industries launched Lyf, its 4G-enabled phone, and its Jio 4G services - only for employees currently. A full commercial launch is due in end March or early April 2016. Just before Jio, came Idea. Airtel and Aircel have already launched their 4G services.

4G, or LTE as it is called globally, compresses huge amounts of data making it easier to transport it over the airwaves. This means “better speeds and, therefore, more video consumption. And anything that pushes up video consumption is good for us,” says Sudhanshu Vats, group CEO, Viacom18 Media.

That is an understatement. 4G, say analysts, is the single biggest game changer in the Rs 100,000-crore market for media and entertainment in India. Largely because it could trigger massive consumption of mobile video, expanding the market for everything - from films and music to newspapers and TV shows. And because it brings the big boys, the telecom and broadband network operators, back into the media game. 

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