Date:26/12/2005 URL: http://www.thehindubusinessline.com/2005/12/26/stories/2005122601890200.htm

Back Cognizant bullish on media, entertainment

V. Rishi Kumar

According to PwC Global, the global media and entertainment industry revenues are poised to increase to $1.4 trillion by 2007, registering a CAGR of 4.8 per cent over five years.

Hyderabad , Dec. 25

COGNIZANT Technology Solutions, the Nasdaq-listed IT solutions provider, is bullish on the media and entertainment vertical and expects to consolidate its operations further based out of its India delivery centres.

As the media and entertainment industry seeks to leverage and tap new modes of revenues and delivery of information, Cognizant says the market is poised for growth as per various research findings.

The Vice-President, Media and Entertainment Practice, Cognizant, Mr Shankar Srinivasan, told Business Line, "We have over 1,200 person-years experience working for customers across the media spectrum of information services, publishing, broadcasting, advertising, entertainment and digital media. Cognizant is making an increased investment in leveraging this opportunity."

The company draws from its background of Dunn & Bradstreet, working for customers such as Nielsen Media Research and AC Nielsen. With increased focus on digitisation, Cognizant has formed a Digital Media Centre that focuses on developing new tools and frameworks for the new media.

"Through our Media Competency Centre, Cognizant offers tools and frameworks for publishing and broadcasting domains targeting areas such as securitisation of streaming media, restricting unauthorised online video access and music downloads, digital asset management (DAM) and digital rights management (DRM)," said Mr Srinivasan.

DRM new wave: Cognizant sees DRM as the next wave in the digitisation space. DRM offers media companies the ability to control distribution and use of their content, thereby protecting the associated revenue. According to experts, the industry will adopt DRM software in content industries such as film, music and book publishing, where migrating from traditional distribution of physical media to new, networked, online methods of selling content is the future imperative.

"DRM will throw up newer revenue opportunities for media companies like paid download services, subscription services, pay-per-view/listen/read, on demand, limited rights models and a la carte ordering services, which will be reflected in the marketplace in the near future," said Mr Srinivasan said.

According to Cognizant, DRM offers a significant opportunity for system integrators in B2C integration, secure content delivery, digital content authentication and context management.

According to PwC Global, the global media and entertainment industry revenues are poised to increase to $1.4 trillion by 2007, registering a CAGR of 4.8 per cent over five years.

Drivers for this growth would be increased adoption of the Internet, broadband revolution, acquisitions, content syndication by telecom providers, business process consolidation and digitisation of most media business streams.

"Newspapers and magazines are adopting new means to increase customer affinity by offering free online content to print subscribers and other rewards similar to those made by the credit card and airline industries. Such programmes merge print with online world. Online behavioural targeting has emerged as new mantra," he said.

Traditional publishing companies are investing in electronic publishing whose contribution to revenues has been increasing. Acquisition of electronic publishing entities by traditional publishing companies corroborates the accent of electronic publishing in recent times.