Avalon helps media company with growth & diversification strategy
Avalon Consulting has helped a leading television-based, ad-served company in India with modernising its business model and delivery channels. The project contributed to a more than doubling of the company’s share price.
The client in question – one of India’s largest television content companies – was struggling with poor growth and value creation despite having a robust portfolio of creative and highly popular content. The business model was grounded traditional ad-served revenue streams, and diversification along the value chain had failed to yield the desired growth numbers.
Leading strategy and management consulting firm Avalon Consulting was brought on board to help the television company explore new growth channels. The primary objectives were to identify and clearly delineate new arenas of operation, as well as to identify competition in those arenas and develop winning strategies.
The first step for Avalon was to set up a strategy workshop to discuss potential ideas. The firm has always highlighted the importance of working with senior leadership of a company to clearly identify goals and ambitions. The workshop yielded a new business model – one based on “offering edgy and relevant entertainment content, direct to the Indian consumer and diaspora, using a mobile technology platform.”
Over the top (OTT) video consumption in India has skyrocketed in recent years, making the market ripe for such a transition. As mentioned, the company already had popular content, but was delivering it through traditional channels. Avalon recommended that it deliver content directly to the consumer, and shift its revenue model from ad-based to subscription based in order to truly embody a modern content provider.
With these business specifics nailed down, Avalon’s role was to devise estimates and forecasts. The firm used smartphone and data penetration across the Indian market to develop accurate demand forecasts. At the same time, strategies were devised for marketing, outreach, partnerships, sponsorships, company structure and other key factors, complete with financial projections.
Two teams were brought on board to help with the process: One to handle the tech side of things, while the other implemented the business strategy. According to Avalon, the tech partner selected is an award-winning digital services outfit with clients and partners across the globe.
Once complete, the new business model and strategy was put on the market for funding, with stellar results. Avalon reports that the content company raised more than Rs. 150 crore in capital via a rights issue, driven by a more than 100% spike in share price. This was the immediate success, while the company has since become a stalwart of digital content in India, with more than 1.5 million subscribers and over 25 million users across 90 countries.
The platform has won a plethora of awards, which includes OTT Platform of the Year at AT Digital Crest 2019 and Best OTT Platform at DIGICC 2018 & 2019, among several others. According to Avalon, the return on investment of hiring the management consultancy has been 800 times the fee.
