zinnov zones - media & technology 2016

This report is solely for the use of Zinnov Client and Zinnov Personnel. No Part of it may be quoted, circulated or reproduced for distribution outside

the client organization without prior written approval from Zinnov.

This report is solely for the use of Zinnov Client and Zinnov Personnel. No Part of it may be quoted, circulated or reproduced for distribution outside

the client organization without prior written approval from Zinnov.

Media Report - March, 2017

Zinnov Zones Media & Technology - 2016

USD 1.53 TrillionOverall Media & Entertainment (M&E)

Vertical Market Size

(2016)

Zinnov Zones M&T 2016 Ratings

Global M&E Landscape01

Service Provider Landscape

03

02

― Media and Entertainment

Industry Landscape

― Market Numbers and Segment

Wise Growth

― Total PES and IT Addressable

Market

― Addressed PES and IT Services

Market

Media and Entertainment vertical consists of 8 major segments, each comprising of multiple customer groups

New Media

Online – Audio, Video, Editorial

Social Platforms

Information Services

Directories

Financial Information Providers

Market Research Providers

Publishing

Book Publishers

Magazine Publishers

Newspaper Publishers

Gaming

Console Gaming

Casinos/Slot Machines

Online Gaming – Betting & Social

Broadcasting

Broadcasting – Over The Air

Cable & Satellite

Broadcast offerings by Telcos, OTT

Marketing & Advertising

Marketing Agencies

Ad-Tech Players

Entertainment

Studios

Music

Theme Parks

Original Content Creators

Education

Online Education

Education Publishers

Education Tech Players

Source: Zinnov Research & Analysis 3

261 268

114 135116 148

401

533

235

313163

240

65

98

180

395

2016 2021e

The M&E market currently is 1.53 Trillion USD, expected to reach 2.13 Trillion USD by 2021

Revenues in USD Bn

4Source: Zinnov Research & Analysis

New Media

Education

Entertainment

Gaming

Marketing &

Advertising

Broadcasting*

Information

Services

Publishing

17.0%

8.5%

8.0%

5.9%

5.0%

5.83%

3.5%

0.5%

Overall6.77%

CAGR 2016-2021

Key Players

Facebook, Yahoo, Twitter, Google, LinkedIn, Baidu,

Huffington Post, etc.

Pearson, Apollo Group, Blackboard, K12, Laureate,

Kaplan, Udemy, Udacity, etc.

Warner Bros, Sony Pictures, 21st Century Fox, Disney,

Universal Pictures etc.

Gtech, Zynga, King, Las Vegas Sands, SJM Holdings,

EA, Scientific Games, Activision Blizzard, etc.

Publicis Omnicom, WPP, IPG, Dentsu, Havas,

AppNexus, etc.

Comcast, DirecTV, Disney Networks, Turner, BBC,

Sky, Fox Networks, Dish Networks, Verizon FIOS etc.

Nielsen, Kantar Media, Ipsos, McGraw Hill Financial,

IMS Health, Harris Interactive, GfK etc.

Pearson, News Corp, Hachette, Gannett, Time Inc,

Condé Nast, Tribune, etc.

* Broadcasting market includes revenues - OTT, cable offerings by telcom companies

TOTAL

North America and Europe based companies contribute more than 75% of the overall revenues for this space

Publishing

Information

Services

Broadcasting

Marketing &

Advertising

Gaming

Entertainment

Education

New Media

Americas Europe APAC

5

10%

15%

10%

35%

20%

10%

5%

20%

180 Bn

65 Bn

163 Bn

235 Bn

116 Bn

401 Bn

114 Bn

261 Bn

15%

20%

20%

25%

55%

20%

20%

40%

75%

65%

70%

40%

30%

70%

75%

40%

~57% ~27% ~16% ~1535 Bn

0% 100%

Revenue Share

50% 0% 100%

Revenue Share

50% 0% 100%

Revenue Share

50%

Source: Zinnov Research & Analysis




03

02

USD 69 BillionTotal Addressable Market

(2016)


Industry Landscape


Wise Growth


Market


Market

Technology disruption is driving robust spend on PES and IT in the Media and Entertainment space


USD 129 Billion

Total PES and IT Spend ( 2016)

7

New Media

USD 34.2 BN

Entertainment

USD 11.3 BN

Marketing &

Advertising

USD 6.1 BN

Information

Services

USD 10.3 BN

Education

USD 6 BN

Gaming

USD 22.3 BN

Broadcasting

USD 28 BN

Publishing

USD 10.4 BN

Current Addressable PES Spend Current Addressable IT Spend

*Opportunity Includes market for Product Engineering and IT Services

USD

69Billion

Addressable Market (2016)

Total Addressable

Opportunity*

USD

105 Billion

USD

26Billion

USD

43Billion

The addressable PES and IT globalization and services opportunity stands at USD 69 billion and will reach USD 105 billion by 2021

Addressable Market (2021)

Total Addressable

Opportunity*

Addressable PES Spend (2021) Addressable IT Spend (2021)

USD

43Billion

USD

62Billion


10-15%20-25%60-65%

Outsourcing HotspotsOutsourced

PES and IT Services

9

Current addressed PES and IT service market is USD 7.6 billion, around 60% of the outsourcing market is driven by North America based companies

Americas Europe APAC

USD

7.6Billion

Addressed PES and IT services through

outsourcing partners




03

02

Service Providersplayers are moving towards

delivering end-to-end digital

services


Industry Landscape


Wise Growth


Market


Market


ZINNOV ZONES EXPLAINED

Nurture

Zone

Breakout Zone

Execution Zone

Leader

Zone

Att

ribute

sC

hal

lenge

sR

eco

mm

ended

Initia

tive

s

• Acquiring new customers, diversifying revenue

• Building product engineering competencies across various media customers/segments

• Developing Engineering services / platform/product specific Sales organization

• Understanding the differences between PES/ IT Service busiNessDigital Engineering

• Focus on targeted customer sections

• Build technology competency in niche focus areas/ technologies

• Focus on building credibility by delivering on initial project scope

• New entrants, providing skill sets to supplement Product development and R&D growth

• Presence in only a few customer segments: Focused growth

• Innovation, if at all, in process optimization

• Limited number of clients• Typically work in T&M model

• Acquiring large customers• Growing existing accounts and

repeat busiNess Digital Engineering

• Developing across the PDLC, solution development competencies

• Building domain, product/ platform engineering capabilities

• Focus on Skill Development• Focus on augmenting domain

skills ( aligned to the concerned media segment)

• Work on building trust with existing customers

• On the way into big league, delivering R&D services effectively

• Presence in two or more customer sections

• Innovation frameworks resulting in tangible benefit to customers

• Typically work in T&M and Fixed Price model

• Growing small accounts into deep relationships

• Building Concept to Market Capabilities with deep domain expertise, relevant IP’s

• Executing on new & innovative busiNess Digital Engineering models

• Limited self owned R&D/ product development infrastructure

• Focus on IP creation; create segment agnostic IP’s for media vertical

• Focus on Account Mining and execution on new busiNess Digital Engineering models

• Focus on internal and external innovation capability /skill incubation efforts

• Capable of delivering complete product/platform development as a true engineering partner

• Presence in almost all customer sections for that segment

• Reusable IP’s built, and benefits quantified

• Capable of executing engagements across all busiNess Digital Engineering models

• Succeeding as go to market partner in emerging markets

• Building end to end product of their own

• Building product management capabilities

• Scaling new segment practices in R&D services to drive continued growth

• Focus on end customer of customers

• Drive customer led innovation• Build strong Go-To-Market

capability to become viable channel partner for customers

• Capable of performing concept to Go-To-Market for the product/platform

• Presence in almost all customer sections for that segment

• Formal innovation culture, resulting in IP’s and numerous tactical innovations

• Capable of working in all models, including Risk Reward and Revenue Share


NEW MEDIA – 2016

Nurture Zone Breakout Zone Execution Zone Leadership Zone

Happiest Minds

HARMAN

Connected Services

Cybage

MindTree

Low

High

Scalability

Domain Practice

Maturity

Zinnov Zones – Leading Service Providers

Depth of Services

Innovation

Eco-system

Connect

EPAM

Aricent

TCS

HCL

Wipro

L&T

Infotech

Curr

ent

Scale

, Cust

omer

base

, #

of se

rvic

es,

Bre

adth

/Dep

th o

f se

rvic

es, a

bili

ty to

scale

Ness Digital Engineering

Tech Mahindra

• Product development and R&D is a focus area

across this segment

• Niche capability in one type across the three

major areas (multi-channel distribution,

analytics media planning)


• Generic - MOUs with partners and alliances

• On the way into big league, delivering domain

services effectively, tear down , purpose fit labs

• Generic Capability across the segment and niche

capability in one area

• Innovation frameworks resulting in tangible

benefit to customers

• Specific industry alliances, partnerships and

membership in Global forums

• Capable of delivering complete end to end

engagements, strong product development

capabilities

• Niche capability spans across two areas and at

least generic capability level in one service type


• Alliances with Customers who are Industry

Leaders and strong ecosystem linkages

• Capable of performing concept to Go-To-Market

for the segment –Significant investment in Lab

infrastructure

• Strong capability in multi-channel distribution,

analytics media planning solutions

• Formal innovation culture, resulting in IP’s and

strategic innovations

• Leadership role in alliances, leverage startups,

Specific academic research, and co-creation with

customers

Source: Zinnov Analysis ; Zinnov Zones – M&T 12

EDUCATION - 2016


Happiest Minds

HARMAN

Connected

Services

Ness Digital

Engineering

Cybage

MindTree

Low

High

Scalability

Domain Practice

Maturity


Depth of Services

Innovation

Eco-system

Connect

EPAM

TCS

HCL

Wipro Tech Mahindra

Curr

ent

Scale

, Cust

omer

base

, #

of se

rvic

es,

Bre

adth

/Dep

th o

f se

rvic

es, a

bili

ty to

scale


across this segment


major areas (content management services,

mobility, analytics, LMS)













capabilities








infrastructure

• Strong capability in content management services,

mobility, analytics, LMS solutions





customers


ENTERTAINMENT ( FILMS, STUDIOS, MUSIC, THEME PARKS) - 2016


Tata Elxsi

Happiest

Minds

L&T Infotech


EPAM

Scalability


Aricent

Tech Mahindra

HCL

Wipro

Cybage

Curr

ent

Scale

, Cust

omer

base

, #

of se

rvic

es,

Bre

adth

/Dep

th o

f se

rvic

es, a

bili

ty to

scale


across this segment


major areas (content supply chain, mobility,

analytics)













capabilities








infrastructure

• Strong capability in content supply chain, mobility

solutions, analytics platforms





customers

Domain Practice

Maturity

Depth of Services

Innovation

Eco-system

Connect

Low

High

TCS


GAMING - 2016


Happiest

Minds

HARMAN

Connected Services

Ness Digital EngineeringCybage

Low

High

Scalability

Domain Practice

Maturity


Depth of Services

Innovation

Eco-system

Connect

EPAM

Aricent

TCS

HCL

Wipro

Tech Mahindra

Curr

ent

Scale

, Cust

omer

base

, #

of se

rvic

es,

Bre

adth

/Dep

th o

f se

rvic

es, a

bili

ty to

scale


across this segment


major areas (UI/UX, mobility, analytics, CRM )













capabilities








infrastructure

• Strong capability in UI/UX, mobility, analytics,

CRM solutions





customers


MARKETING AND ADVERTISING - 2016


Ness Digital

Engineering

Cybage

MindTree

Low

High

Scalability

Domain Practice

Maturity


Depth of Services

Innovation

Eco-system

Connect

EPAM

TCS

HCL

Wipro

Tech Mahindra

Curr

ent

Scale

, Cust

omer

base

, #

of se

rvic

es,

Bre

adth

/Dep

th o

f se

rvic

es, a

bili

ty to

scale


across this segment


major areas (ad Tech Engineering, ROI

measurement, marketing tools)













capabilities








infrastructure

• Strong capability in ad Tech Engineering, ROI

measurement, marketing tools solutions





customers


BROADCASTING - 2016


Happiest

Minds

HARMAN

Connected Services



across this segment

Tata Elxsi

Cybage

MindTree

Low

High

Scalability

Domain Practice

Maturity


Depth of Services

Innovation

Curr

ent

Scale

, Cust

omer

base

, #

of se

rvic

es,

Bre

adth

/Dep

th o

f se

rvic

es, a

bili

ty to

scale

EPAM

Aricent

HCL

Wipro

L&T Infotech

Tech Mahindra


major areas (content supply chain, mobility,

analytics)













capabilities








infrastructure

• Strong capability in content supply chain, mobility

solutions, analytics platforms





customers

Eco-system

Connect

Source: Zinnov Analysis ; Zinnov Zones – M&T

TCS

17

INFORMATION SERVICES - 2016


Happiest

Minds

HARMAN Connected Services


Cybage

Low

High

Scalability

Domain Practice

Maturity


Depth of Services

Innovation

Eco-system

Connect

EPAM

TCS

HCL

Wipro

Tech

Mahindra

Curr

ent

Scale

, Cust

omer

base

, #

of se

rvic

es,

Bre

adth

/Dep

th o

f se

rvic

es, a

bili

ty to

scale


across this segment


major areas (workflow management, editorial,

digitization and analytics)













capabilities








infrastructure

• Strong capability in workflow management,

editorial, digitization and analytics solutions





customers


Aricent

18

PUBLISHING - 2016


Happiest Minds

Ness

Digital

Engineering

L&T Infotech

CybageMindTree

Scalability


EPAM

Wipro

TCS

Tech Mahindra

HCL

Curr

ent

Scale

, Cust

omer

base

, #

of se

rvic

es,

Bre

adth

/Dep

th o

f se

rvic

es, a

bili

ty to

scale


across this segment


major areas (content supply chain, content

ecosystem, digital distribution and analytics)













capabilities








infrastructure

• Strong capability in content supply chain, content

ecosystem, digital distribution and analytics

solutions





customers

Domain Practice

Maturity

Depth of Services

Innovation

Eco-system

Connect

Low

High


ZINNOV ZONES – TECHNOLOGY RATING MODEL


Established

Emerging

Mature Niche

Mature & Established

Mature & Emerging

Niche & Established

Capabili

ty (

peo

ple

, Infr

a, p

art

ner

ship

, inv

estm

ent)

and

M&

E

clie

nt

spre

ad

Breadth and Feature Maturity, Nature of Engagement with M&E customers

( End to End/ Modular implementation)

Niche & Emerging

• Niche Companies with a complete focus on

the technology. Have past and established

relationships with customers

• Focus on building niche R&D and segment

specific capabilities

• Niche and emerging companies with

expertise across select media segments

• Focus on scaling and adding

functionalities across this technology

• Large and established companies which

offer end to end services across all

aspects for this technology ecosystem

• Work with multiple customers across all

the M&E segments

• Competency in majority areas of the

technology ecosystem

• Ability to execute complete end to end

Services across all M&E segments

INTELLIGENCE PLATFORMS & SOLUTIONS - 2016


Harman

TCSWipro

Tech Mahindra

Mindtree

HCL

Cybage

L&T Infotech

Tata Elxsi

EPAM

Aricent

Established

Emerging

Mature Niche


Mature & Emerging

Niche & Established

Capabili

ty (

peo

ple

, Infr

a, p

art

ner

ship

, inv

estm

ent)

and

M&

E

clie

nt

spre

ad



Niche & Emerging

Tech Mahindra

HARMAN

Connected Services

Ness Digital

Engineering

21

CONTENT SECURITY - 2016


Tata ElxsiEPAM TCS

Wipro

Tech Mahindra

HCL

Aricent

L&T Infotech

Cybage

Tech Mahindra

Established

Emerging

Mature Niche

Capabili

ty (

peo

ple

, Infr

a, p

art

ner

ship

, inv

estm

ent)

and

M&

E

clie

nt

spre

ad




Mature & Emerging

Niche & Established

Niche & Emerging

Ness Digital

Engineering

22

IMMERSIVE TECHNOLOGIES - 2016


Aricent

Tata Elxsi

Wipro

HCL

TCS

EPAM

Ness

Cybage

Tech Mahindra

Established

Emerging

Mature Niche

Capabili

ty (

peo

ple

, Infr

a, p

art

ner

ship

, inv

estm

ent)

and

M&

E

clie

nt

spre

ad




Mature & Emerging

Niche & Established

Niche & Emerging

Ness Digital

Engineering

23

EXPERIENCE ENGINEERING- 2016


Aricent

Tata Elxsi

EPAM

Wipro

Mindtree

HCL

TCS

Ness

L&T Infotech

Tech Mahindra

HARMAN

Connected Services

Established

Emerging

Mature Niche

Capabili

ty (

peo

ple

, Infr

a, p

art

ner

ship

, inv

estm

ent)

and

M&

E

clie

nt

spre

ad




Mature & Emerging

Niche & Established

Niche & Emerging

Cybage

24


OTT VIDEO - 2016


TCS

Wipro

EPAM

Tech Mahindra

Tata Elxsi

HCLMindtree

L&T Infotech

Aricent

Ness

Cybage

Established

Emerging

Mature Niche

Capabili

ty (

peo

ple

, Infr

a, p

art

ner

ship

, inv

estm

ent)

and

M&

E

clie

nt

spre

ad




Mature & Emerging

Niche & Established

Niche & Emerging

Tech Mahindra

Ness Digital

Engineering

25

Bangalore

69 "Prathiba Complex",

4th 'A' Cross,

Koramangala 5th Block,

Bangalore-560 095.

Phone: +91-80-41127925/6

Singapore

Level 42, Suntec Tower Three

8 Temasek Boulevard

Singapore 038988

Phone:+65 6829 2123

Texas

21, Waterway Ave

Suite 300

The Woodlands

TX-77380 USA

Phone:+1-281-362-2773

Beijing

Meilifang Tower 4, Entrance 4,

10/F #1003,

11 Beiyuan Shuangying Road,

Chaoyang District, Beijing

China 100012

Thank You

Gurgaon Office:

First Floor,

Plot no. 131, Sector 44,

Gurgaon-122002,

Phone: +91 124 4420100

California Office

3080 Olcott Street

Suite A125,

Santa Clara, CA 95054

Phone: +408-716-8432