A paradigm shift is coming in the way TV content is consumed in India: Chris Houghton

Interview with Head, India Region, Ericsson

Swedish technology major Ericsson has stepped up its focus on the television and media verticals in India, with two tie-ups, one with direct-to-home operator Tata Sky and the other with Sun TV. This is in addition to the work it is doing with broadcasters such as STAR, Sony and ZEE. Its India India region head, Chris Houghton, talks to Viveat Susan Pinto on these and other priorities. Edited excerpts:

Beside the just-announced tie-ups, are you looking at any more, such as with Reliance Jio, which is slated to launch 4G (fourth generation) services soon?

We are talking to players all the time. We work with all the leading broadcasters in the country, beside Bharti Airtel. With Bharti, we do their content management system, their compression technology and playouts. With telecom and video networks converging, it provides us myriad possibilities.

Broadcast operations have been outsourced to you in different parts of the world by channels but you don't do this here. Why?

The timing has to be right. The market here has to evolve to permit something like this. What we do in India is currently restricted to over-the-top (OTT) content. In broadcasting parlance, OTT means the delivery of audio, video and other media over the internet, without the involvement of a cable operator for distribution purposes.

So, it is content over a wireless network, not a cable & satellite network. With the growing penetration of smartphones in India and the evolution of technologies such as 4G, there will be a paradigm shift in the way television content will be consumed here. Don't be surprised if mobile phone screens become the new TV screens.

There are challenges in doing this?

Of course. If you do a two-hour streaming video, someone with a 1-GB plan will run out of it in 33 videos. So, that is a problem. This is because there is less spectrum available. Plus, the content has to be right, the device has to be right. In other words, the system will have to gear up for this shift. Also, consumer habits will have to change. Content will have to monetised, so someone will have to pay for it, either consumer or advertiser. There will have to be some fundamental changes in the business.

What is your market share in the TV & media verticals in India? And, where do you see it going?

We have 10 per cent in TV & media and are looking at 15 per cent by 2017. We provide three things in India — compression solutions & media delivery networks, prime integration services and creating  OTT networks for operators, as well as playouts. India is among the top three markets for Ericsson globally, in overall revenue contribution. TV and media is a focused vertical for us, which has the potential to grow from current levels.

Of the six verticals where Ericsson is operational, where does TV and media rank?

I cannot tell you, as I would then be giving out profit and loss details. Ericsson does many things; we are an integrated hardware and software player. Of the services we provide, six have been identified as those we can take to the market. Media & TV is one. We have been doing a lot of work in this area and are now scaling up our ambitions.