• 3G expands consumer audience by 100 million listeners

  Until now, most Indians have not had access to high-speed Internet or a PC. The wired broadband penetration of India stands at about 13 million subscriptions — which is a pittance, especially when you consider that this includes offices, cyber cafés and the like; and including institutions, there are only 50 million PCs in the country. Very few Indians have broadband or a PC of their own; this renders the historical paid download model (to a desktop or to a PC-tethered mp3 player) unscalable.

  Despite the lack of broadband and PC penetration, there are currently 121 million Internet users in India. Guess where they are? Mobile. With the rollout of 3G in India, access to high-speed Internet has become cheaper and more widely available. You no longer need to own a desktop computer to get online or, most importantly, to participate in e-commerce — all you need is a mobile phone.

  The mobile model — and by extension, the mobile music model — scales. It took broadband 7 years to reach 11.5 million wired subscribers. In less than half that time, 3G subscriptions in India topped 13 million, and that number is rapidly growing. There are 884 million mobile users in India, and as smartphones flood the market, more of them will be making the switch, becoming not just first-time smartphone users, but first-time Internet users as well.

  Already, 59 percent of mobile web users access the Internet via mobile only. A study by the Boston Consulting Group predicts that the total number of mobile Internet users will balloon to 237 million by 2015. It is connectivity, now more than ever.

  With the addition of over 100 million Internet-enabled potential users, it’s no wonder the Indian digital music industry is jumping for joy. 3G has brought a new generation of Internet users online, where music can be discovered, enjoyed, purchased and shared.

• Advertisers, rather than end users, are footing the bill

  Is there anything better than free? At last, the dream of ad-supported free music is a reality.

  Brands are embarking on the biggest consumer grab of the century as China’s and India’s multi-billion audiences rise in economic status. Thousands of brands are competing to become the future soda, life insurance and auto brands of this part of the planet. That’s a major influx of ad dollars looking for a scalable way to engage consumers.

  Asking consumers to shell out 15 to 25 rupees for a song online was unrealistic when pirated options were widely available for free. But as legal sites gain popularity and engagement numbers soar, major brands are ready to spend their advertising dollars on digital music Web sites and apps, so music services like Saavn can provide a large catalog of ad-supported music to end users for free.

  The benefits are abundant for the brand advertisers, end users and record labels; the end user gets something customizable and valuable for free, while major brands can finally capture the attention of one of the world’s largest emerging markets. Record labels can now pull in much larger profits from major brands while cutting their own costs of manufacturing, packaging and distributing physical products.

  So what made advertisers change their minds? Piracy. Until recently, the digital music industry in India was completely overrun by rampant piracy — a staggering 97 percent of digital music content was from pirate sites. This means poor quality without options of sharing and discovery for the user, no profits for the record labels and an unwillingness from brands to risk having their names on an illegal site.

  Thankfully for all parties involved, piracy is finally being addressed — in February, the High Court of Calcutta handed down the decision to ban the pirate site songs.pk on major ISPs. This kind of move reinforces for the industry and for consumers that the music pirates’ days are numbered.

  While pirated music is still an issue in India, legitimate and fully legal music streaming Web sites and apps are restoring the faith of advertisers, meaning a huge new audience for advertisers, profits for the music labels from brands with deep pockets and top-notch quality for users.

• Digital means data

  Labels are excited that they can finally reach audiences who are passionate about their niche content, thanks to the kind of targeting that digital platforms make possible from user data. It’s especially great for indie labels, who now have fast entry to market and an opportunity to get in front of the right audience, despite not having the major-label marketing moolah.

  Thanks to the wealth of data digital music supplies, the Indian music industry can get the right music to the right people at the right time. No need to make assumptions based on demographic information or guess what people will like. Data provides the ultimate customization tool for an industry in which customization and understanding the preferences and tastes of the end user is key.

  This is the moment the music industry has been waiting for; it can finally focus on its core business — producing music — while advertisers happily foot the bill. And users get to sit back and enjoy, share and discover for free.

Paramdeep Singh is the managing director and co-founder of Saavn, the fastest-growing music service for South Asian music worldwide. He is also a principal and co-founder of 212Media, a privately-held venture development company, which he helped launch in 2005. Follow Paramdeep @paramdeepsingh on Twitter.

What’s not included: almost any first-run TV show or newly released movie. That’s the content that’s made Hulu successful and what’s also driven traffic to offerings from CBS and Disney’s ABC.

You can’t accuse the Google guys of overselling this: In a press conference today, they described it as a “first step, a baby step.”

Google (GOOG) did say that it had added new content partners, but it was maddeningly imprecise about which ones it had signed up and what content they were providing. The company did confirm, however, that Sony (SNE), via its Crackle video site, would be providing content.

Google also said that it now has “thousands” of television shows and “hundreds” of movies; prior to this, the company said its catalog consisted of just “hundreds” of TV shows and “dozens” of movies.

But this is still primarily “long tail” stuff. The only first-run CBS (CBS) show YouTube offers, for instance, is “Harper’s Island,” which YouTube already offered. And if you recognize any of the following new YouTube partners, then it means you’re a show business insider: Endemol, Anime Network, Scott Entertainment, Entertainment Rights, Shout Factory, Telenext Media, Documentary Channel, First Look Studios, IndieFlix, Saavn, Snag Films, Venevision and Bandai.

Still, YouTube needs as much licensed content it can get its hands on in order to lure more advertisers to the site, which has underperformed to date.

Advertisers who do want to sign up will have a new option: a “Google TV ads” product that inserts ads into the shows, à la Google’s Adsense for Web publishers. Google said it will use “pre-roll,” “mid-roll” and “post-roll” ads–i.e., video ads that run before, during and after the movie or TV show–as well as the overlay ads that cover the bottom part of the screen, briefly, with a translucent pitch.

Google will also allow video providers to sell their own content, and in some cases, will allow them to use their own video player, a first for the company. Sony, for instance, will use its Crackle video player for its content.

Reports that YouTube had a deal with Sony to show full-length movies and TV shows on the site surfaced earlier this month. Last month, reports also indicated that YouTube was talking to Disney (DIS) about getting movies and ABC TV shows on the site, but since then I’ve been told that Hulu, the joint venture between News Corp.’s (NWS) Fox and GE’s (GE) NBC, has all but locked up ABC shows for an exclusive deal.

Here are two releases, one describing the new section and the other describing the new ad product. Screenshots follow.

Watch Shows and Movies on YouTube: Today we’re excited to announce a new destination for television shows and an improved landing page for movies on YouTube, where partners like Crackle, CBS, MGM, Lionsgate, Starz, the BBC and many others have made thousands of television episodes and hundreds of movies available for you to watch, comment on, favorite and share. This addition is one of many efforts underway to ensure that we’re offering you all the different kinds of video you want to see, from bedroom vlogs and citizen journalism reports to music videos and full-length films and TV shows.

To help you navigate through all this great content, we’re introducing two new tabs to the YouTube masthead: the “Shows” tab allows you to browse shows by genre, network, title and popularity, while the “Subscriptions” tab will grant logged-in users one-click access to fresh content from their favorite creators.

Another change you’ll notice today is the wider roll-out of in-stream ads, which we’ve been testing since October, to support our shows and movies content — not unlike what you might see when viewing this type of content on TV.

While shows and movies are currently limited to users in the US, we look forward to expanding to other regions as soon as possible.

We hope you enjoy watching shows and movies on YouTube. There’s still work to be done and we look forward to iterating with you, whether that’s rolling out new engagement features, expanding our content offering or improving your viewing experience. And, as with everything we do, we’ll track your usage and feedback to preserve your fundamental YouTube experience while we take these steps to enhance it.

Yours,
Sara Pollack
Entertainment Marketing Manager
The YouTube Team

Reach TV viewers through more than one screen
By Geoff Smith, Product Manager for Google TV Ads

Google TV Ads makes it easy for advertisers of all sizes to reach customers watching television. These days, many full-length television programs are also available for Internet users to watch online. These programs may appear in various places, including the websites of the networks which originally broadcast them and on other sites that specialize in video content. What if an advertiser wants to reach the audience of a particular program, no matter whether they’re watching on a television or online?

We’re excited to announce the beta launch of Google TV Ads Online. This is a new feature of Google TV Ads that lets advertisers place commercials into the ad breaks of TV programs watched online. It works in the same way as Google TV Ads: advertisers can target specific programs and select their cost-per-thousand (CPM) bid. Based on their targets, budget and bid, ads are inserted in the same program breaks that were designed for advertising when the programs first aired. (Ads may also be shown “pre-roll”, before the program begins, or after the online presentation of the program “post-roll.”) And like Google TV ads, we provide advertisers with measurement tools that give greater insight into how their ads perform with users.

One website where viewers are consuming more and more full-length content online is YouTube. Today, YouTube launched a new destination for full-length shows and movies, and advertisers will be able to use Google TV Ads Online to reach the millions of people who come to YouTube to watch this content. That’s not only good for advertisers, but content partners who are looking to generate revenue from their videos online. Ads will also be shown on other websites that carry full-length video programs.

Google TV Ads Online is still in beta and available to advertisers by invitation only. If you’re interested in learning more about it or would like to be considered for the program, please contact Erin Bouchier at erinb@google.com.

Here’s what the new YouTube video player looks like in full-screen mode (click to enlarge):

And here’s a “landing page” for YouTube TV shows:

This year, the Oscars ceremony will remain decidedly low tech: There won’t be any live online streams where you can watch the 81st Academy Awards.

Because it’s easier to monetize eyeballs directed at television screens rather than computer monitors, your choices are limited to broadcasters ABC in the U.S. and Sky in the U.K.–and a big, fat nada for those who receive neither.

But seriously, who watches the three-hour-plus televised Oscars anymore anyway? Not many, apparently: Last year’s ratings were the lowest in history. This year, besides seeing if a probably singing-and-dancing Wolverine Hugh Jackman can entertain where so many before have failed, learning if your Best Picture prediction hit the mark, or even hoping to catch Christian Bale “Bale out” (a term meaning to unleash an F-bomb-laden tirade–it’s even defined in the urban dictionary now) some poor unsuspecting red carpet usher, there’s not a lot of buzz around the event.

No, like any other big entertainment or sporting event, the awards ceremony itself is but a small part of the experience. The real fun goes on around the Oscars, in Web site predictors, mobile apps and other interactive technology.

Tracking the Winners

Sites like Awards Daily put up Oscar predictions, including a table gathering the guesses of a group of its writers and readers (caution: It might cause glazing-over of the eyes).

But Awards Daily also has tracked the other awards the Oscar nominees have won in the past year, including the Golden Globes and BAFTA. This will provide some helpful research for when you go to fill in your Oscar ballot at the New York Times, where you can compete with others and have your card scored in real time. And Yahoo, conducting a poll, shows the movies favored to grab the little golden man by percentage of user votes.

Meanwhile, “Colbert Report” host Stephen Colbert gave his own predictions earlier last week using what he calls DaColbert Code (as in the DaVinci Code). His ability to “see patterns” consists of using a word/name association game. For instance, starting from last year’s Best Actress Marion Cotillard, he arrives at a Kate Winslet prediction through a series of phrases, including “rice pilaf,” “Clockwork Orange” and “Malcolm X.” Hey, everybody’s got a system, so nobody said it had to be a good one.

And for the truly devoted, or those who are just more interested in the fashion than the films, People.com has put up a Predict-a-Gown photo quiz. Will Cameron Diaz wear the White Valentino or the Black Oscar de la Renta? You see, these are the critical questions we need to be asking, and only the good folks at People were brave enough to ask them.

Mobile and Web 2.0

iPhone’s App Store has some popular Oscar apps like the “Awards: Oscars Edition” and “Hollywood Trivia: The Oscar Quiz,” which provide all sorts of fun interactive functionality in ballots, games and history. See a list of the top apps at VentureBeat.

Meanwhile, if you want to tap into the Bollywood fanbase, especially inspired by the many nominations for “Slumdog Millionaire” this year, go to Saavn.com, which is hosting a Bollywood-Facebook widget. The widget tracks the Facebook status updates of users talking about the Oscars.

And of course, what Web 2.0 party would be complete without Twitter? Use either #Oscars or #aa09 when searching for relevant updates. You can also subscribe to @watchwithcomics, a group of comedians who will be live-Twittering the event. One recent update there was “10 People Who Would Be Better Hosts than Hugh Jackman,” which included “Wolverine” and “Mini-Chris Brown and Mini-Rihanna.” Wow, these guys aren’t joking around.

This year, the Oscars ceremony will remain decidedly low tech: There won’t be any live online streams where you can watch the 81st Academy Awards.

Because it’s easier to monetize eyeballs directed at television screens rather than computer monitors, your choices are limited to broadcasters ABC in the U.S. and Sky in the U.K.–and a big, fat nada for those who receive neither.

But seriously, who watches the three-hour-plus televised Oscars anymore anyway? Not many, apparently: Last year’s ratings were the lowest in history. This year, besides seeing if a probably singing-and-dancing Wolverine Hugh Jackman can entertain where so many before have failed, learning if your Best Picture prediction hit the mark, or even hoping to catch Christian Bale “Bale out” (a term meaning to unleash an F-bomb-laden tirade–it’s even defined in the urban dictionary now) some poor unsuspecting red carpet usher, there’s not a lot of buzz around the event.

No, like any other big entertainment or sporting event, the awards ceremony itself is but a small part of the experience. The real fun goes on around the Oscars, in Web site predictors, mobile apps and other interactive technology.

Tracking the Winners

Sites like Awards Daily put up Oscar predictions, including a table gathering the guesses of a group of its writers and readers (caution: It might cause glazing-over of the eyes).

But Awards Daily also has tracked the other awards the Oscar nominees have won in the past year, including the Golden Globes and BAFTA. This will provide some helpful research for when you go to fill in your Oscar ballot at the New York Times, where you can compete with others and have your card scored in real time. And Yahoo, conducting a poll, shows the movies favored to grab the little golden man by percentage of user votes.

Meanwhile, “Colbert Report” host Stephen Colbert gave his own predictions earlier last week using what he calls DaColbert Code (as in the DaVinci Code). His ability to “see patterns” consists of using a word/name association game. For instance, starting from last year’s Best Actress Marion Cotillard, he arrives at a Kate Winslet prediction through a series of phrases, including “rice pilaf,” “Clockwork Orange” and “Malcolm X.” Hey, everybody’s got a system, so nobody said it had to be a good one.

And for the truly devoted, or those who are just more interested in the fashion than the films, People.com has put up a Predict-a-Gown photo quiz. Will Cameron Diaz wear the White Valentino or the Black Oscar de la Renta? You see, these are the critical questions we need to be asking, and only the good folks at People were brave enough to ask them.

Mobile and Web 2.0

iPhone’s App Store has some popular Oscar apps like the “Awards: Oscars Edition” and “Hollywood Trivia: The Oscar Quiz,” which provide all sorts of fun interactive functionality in ballots, games and history. See a list of the top apps at VentureBeat.

Meanwhile, if you want to tap into the Bollywood fanbase, especially inspired by the many nominations for “Slumdog Millionaire” this year, go to Saavn.com, which is hosting a Bollywood-Facebook widget. The widget tracks the Facebook status updates of users talking about the Oscars.

And of course, what Web 2.0 party would be complete without Twitter? Use either #Oscars or #aa09 when searching for relevant updates. You can also subscribe to @watchwithcomics, a group of comedians who will be live-Twittering the event. One recent update there was “10 People Who Would Be Better Hosts than Hugh Jackman,” which included “Wolverine” and “Mini-Chris Brown and Mini-Rihanna.” Wow, these guys aren’t joking around.