The landscape of media and entertainment (M&E) in India offers abundant opportunities, especially for magazines and creators of informational content. However, as we navigate the digital age, monetising premium content presents increasingly complex challenges.

Addressing these dynamics, a session at the Indian Magazine Congress brought together Nitin Chandalia, managing director and partner, Boston Consulting Group, and Sumit Gupta, managing director and senior partner, Boston Consulting Group, to delve into the imperative of enhancing access and exclusivity within the M&E sector and exploring innovative monetisation models.

Furthermore, the discussion underscored the growing significance of digital marketing and content creation in the realm of media business.

Magazine industry growth opportunities in India

Setting the stage, Chandalia articulated, "In contemplating the realm of opportunity against the backdrop of uncertainty, we are compelled to explore our collective trajectory in the media landscape. This includes the challenges hindering growth despite aspirations towards global economic prominence."

He elaborated on several critical factors, such as media expenditure in India and the narratives shaping societal identities. "These factors illuminate the intricate market dynamics where diverse media platforms contend amidst technological advancements. Centre to the discourse is the role of magazines as fortifications for content curation, influence, and community engagement. Amidst content saturation, magazines must curate narratives and foster communities. This curated approach, led by dedicated editors, ensures the delivery of relevant content tailored to diverse audiences," Chandalia expressed.

However, he noted that amidst proliferation lies the challenge of discoverability and relevance. He said, "Magazines must embody values and resonate with their audiences, demanding a nuanced understanding of niche demographics and strategic engagement. In essence, a community-centric content creation approach and targeted audience engagement works best. By aligning efforts with audience needs, we can navigate the evolving media landscape which is led by purpose and effectiveness."

Magazine consumption trends  

Chandalia then steered the conversation on the evolving trends in magazine consumption and the challenges faced by publishers in adapting to changing audience behaviours. 

He shared, “In examining magazine consumption patterns, one key aspect we explore is the evolving nature of how people engage with content. Traditionally, consumption was often tied to specific times of the day, such as reading the morning newspaper or catching up with magazines in the evening."   

Chandalia went on to highlight the shift in consumption patterns from fixed times of the day to more sporadic interactions throughout the day. He expressed, “We've observed a significant shift towards what we term as 'sniper format' consumption—a trend characterised by shorter, more frequent interactions with content throughout the day. This ‘sniper format’ consumption and bite-sized engagements are becoming more prevalent among audiences. This transition challenges the conventional notion of magazines as platforms for long-form, immersive reading experiences."  

Chandalia acknowledged the challenge posed by changing consumption habits to the traditional format of magazines, which typically offer longer articles and in-depth content. He underscored the importance of acknowledging the diversity in audience preferences and adapting content delivery accordingly.   

He noted, “While there remains a segment of the audience that still craves such deep engagement, there's a growing recognition that attention spans and consumption habits vary widely. Thus, the crux lies in capturing audience attention across these diverse consumption pockets.”

Chandalia emphasised the need for publishers to capture audience attention across various consumption patterns to remain relevant. "This paradigm shift necessitates innovative approaches to content delivery and audience engagement. As we navigate this landscape, it becomes imperative to explore new revenue streams that align with these changing consumption patterns," he voiced. 

Identifying new revenue streams

Stressing the importance of identifying new revenue streams that are compatible with evolving consumption behaviours to ensure the sustainability of magazine publications, Chandalia shared, "Adapting to these shifts will be essential for the sustained relevance and success of magazine publications in the digital age.”

Chandalia then led the discourse towards the global landscape of magazine revenue. 

"Globally, diverse revenue streams contribute to a substantial annual income ranging between USD 60 to USD 80 billion," Chandalia remarked. "This financial significance is not merely about monetary gains but underscores the intrinsic value of magazines as brands and community platforms," he added.

Delving into the digital arena, Chandalia highlighted the contrast between stagnant overall revenue trends and the promising growth trajectory of digital platforms. "The inherent volatility of digital revenue streams poses both challenges and opportunities for industry players," he noted.

When focusing on India's market dynamics, Chandalia pointed out the absence of concrete revenue figures but hinted at the substantial potential within the USD 500 billion-plus revenue bracket across various media sectors.

Transitioning to discussions on consumption patterns, Chandalia brought attention to the evolving nature of audience engagement. "The traditional time-bound reading habits are morphing into a more fragmented 'sniper format' consumption style," he observed. "This shift necessitates innovative strategies to capture audience attention across diverse consumption pockets, emphasizing the importance of tailored content delivery and engagement tactics."

Fragmentation of audience consumption

Furthermore, the session recognised the increasing fragmentation of audience consumption across various media channels. "Digital platforms are gaining prominence in India's content landscape," Chandalia remarked, "yet print media continues to hold a significant share, particularly in smaller cities, highlighting the nuanced nature of consumption trends across different demographics."

Gupta then delved into various concepts, highlighting the evolution of accessibility and exclusivity, the significance of micropayments, dynamic content delivery, and sponsored interactions. He shared, "There is an enduring potential in areas such as content aggregation and crowdfunding within philanthropic spheres, drawing from recent experiences, which focused on global emergencies. Alongside advancements in AI, there is a growing importance of thematic and topic-based journalism, making content appeal to diverse cohorts."

Role of aggregation

Gupta spotlighted the critical importance of aggregation, stressing its role as the cornerstone of identity across various domains, particularly amid crises. He shared, "The value proposition of a subscription model, and its evolution has led to to an array of content offerings. Furthermore, the experimentation with digital instant micropayments, successfully helps publications expand their readership across borders. However, there is a shift in strategy towards tax-free subscriptions and away from paywalls for news content, spurred by discoveries about consumer preferences."

Gupta also underscored the alignment between this emerging field and philanthropic efforts in journalism, pointing out substantial funding dedicated to theme-based reporting. 

Licensing and syndication

Gupta said, "There are growing initiatives to integrate content into licensing and syndication models, such as collaborations with technology giants like Google. Despite its lower ranking in terms of monetisation priority, the significance of content aggregation is growing, drawing parallels to the exponential growth seen in e-commerce revenue streams. When it comes to branded content, there is a pivotal role of sponsored content in driving business growth, which reflects its substantial contribution to overall revenue."

Wrapping up the session, Gupta underscored the pivotal role of the Economist Intelligence Unit  (EIU) in driving 100% growth in the last decade and drew attention to the exceptional progress made in marketing training, film, and digital content. 

"For media publishers, the intent is now to invest more into digital marketing services and gaming, to attract more users. Moreover, the focus has been on creating sponsored digital content over the past several decades, which has proven to be a winning strategy. With this in mind, it's time for media publishers to take swift action and invest in these growth areas to ensure long-term success," Gupta concluded.