SVG Sit-Down: Tata Communications' Dhaval Ponda on How Acquiring The Switch Will Impact the Sports Media Industry By Jason Dachman
Thursday, February 16, 2023 - 3:13 pm
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Just before the end of 2022, Tata Communications announced its acquisition of The Switch in a move that will have a tremendous impact on the live-transmission and production industry. The acquisition gives Tata Communications a stronger foothold in the Americas M&E market and extends its portfolio further into live video production. In its announcement, Tata also said the deal will uniquely position the newly combined entity as an end-to-end media ecosystem player in the entire content development value chain globally.
SVG sat down with Dhaval Ponda, Global Head of Media & Entertainment Services, Tata Communications, to discuss why the deal made sense for Tata, how The Switch will expand its offerings, what the deal means specifically for live-sports broadcasters, what established The Switch customers can expect moving forward, and how he sees the sports-media industry evolving (and expanding) in the coming years.
Why did this deal make sense for Tata Communications? What were the key aspects that convinced Tata Communications to move forward with the acquisition?
Tata Communications is fully committed to enabling the once-in-a-generation disruption going on in media and entertainment industry globally. We have consistently invested in capabilities, talent and technology over many years and currently have a disproportionate market share when it comes to global sports content.
Dhaval Ponda, Global Head of Media & Entertainment Services, Tata Communications
We have been helping sports federations, broadcasters, and OTT players manage and transfer content from various sports venues globally to almost every single screen in the world. Many sports organizations are adapting to streaming live events and have come to find that it's attracting a bigger audience, reaching those abroad who may not have access to a traditional telecast. According to Nielsen, in August 2022, sports streaming captured 35% of total TV time, capping six consecutive months of viewership highs. We already have a high performant, video-native Media Edge and Media Cloud platform with global reach. Today, it is supporting one of the most complex video workflows globally such as low latency video streaming of a live game on the user's mobile screen which is in sync with their television screens.
What key services/resources/abilities/etc. does this acquisition add to your portfolio that you did not have before?
The Switch is a leading provider of end-to-end live video production and transmission services globally. It has a high NPS with customers and is exceptionally well known for its broadcast experience and superior service. With this partnership, Tata Communications will gain extended reach in majority of North American sports venues. It will also help us expand our portfolio into live video production and become uniquely positioned as an end-to-end media ecosystem player in the entire content development value chain globally.
By leveraging our existing capabilities and with The Switch team, we will now be able to develop holistic, scalable solutions encompassing live and scheduled programming for television, leveraging pre-recorded and filed videos for new content creation and all post-production.
How does this newly combined entity create a better value proposition for sports broadcasters, specifically?
The global media and entertainment industry is at a once-in-a-generation digital transformation driven by a fundamental change in consumer consumption behaviors. According to Statista, in 2022, adults in the US devoted 8 hours a day to consuming digital media and entertainment channels. Within this, live sports continue to be the most premium form of content. Broadcasters and OTT players are constantly exploring ways to monetise this by improving at-home fan engagement and the opportunity is immense.
What can The Switch customers expect in terms of enhanced/changing services?
With both companies coming together, Tata Communications will support The Switch customers with global reach to over 190 countries and territories and The Switch will bring state of the art live production capabilities helping organisations to produce high quality, more immersive content faster and more efficiently. Tata Communications will bring advanced cloud & media edge capabilities to Switch customers, bringing a compelling proposition to the industry by helping shift media workflows to the cloud in a seamless manner. The Switch and Tata Communications teams, together, will help the industry evolve to the next level of at-venue and at-home fan engagement.
Do you see the sports transmission sector as a valuable market and/or key growth area in the coming years?
With people spending more time on the television and digital screens, today has emerged as a golden era of content consumption. With the demand for easily accessible content ever increasing, live sports continue to be the most premium form of content that commands high viewership and loyalty across regions. Sports rights market is expected to cross $85 billion on an annual basis. Additionally, the demand for more local programming is putting immense pressure on CXOs to leverage technology for effective ways for production.
According to a new market research report, Live Streaming Market, the live streaming market is expected to reach $4.26 billion by 2028, at a CAGR of 22.4% from 2021 to 2028. As per IABM DC Market Outlook, the global market for video production is at $8 billion. Consequently, the global market for video transmission is over $4 billion, and live video production is over $12 billion.
Live broadcast technology over the inter
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SVG Sit-Down: Tata Communications' Dhaval Ponda on How Acquiring The Switch Will Impact the Sports Media Industry By Jason Dachman 
