Remember the days when you used to wait for a big Bollywood blockbuster to premiere on the small screen? Long gone are those days with the OTT platforms breaking the pattern, and bringing in a shift in the viewing habits.
The sale of digital rights has turned out to be a big contributor in the business of the entertainment industry. Producers are increasingly going the virtual way, beyond the traditional selling of satellite rights when it comes to home viewing. But are they disrupting the trade? Not at present, but the threat looms large.
Theatrical release still holds the big share of the revenue pie, followed by satellite rights. But acquiring digital rights might eclipse the figures sooner than expected.
According to KPMG's Media and Entertainment report this year, "the economics of film production has undergone an overhaul as digital rights have tilted the dynamics of film making in favour of production studios".
It is also turning out to be another source of revenue for filmmakers, and another avenue for the audience.
"Earlier, satellite companies used to buy all the rights and digital rights. Now, digital companies are coming and buying the rights. I don't think they are disrupting. They are adding another revenue stream for the producers to make money. It is a win-win situation for all," film and trade expert Girish Johar told IANS.
The entry of OTT players, however, is initiating change in the pricing of cable and satellite rights. According to the 2019 edition of the FICCI-EY report, 2018 saw digital rights "driving up the cable and satellite prices of tent pole movies".
"With consumption of content on OTT platforms set to increase in the future, digital rights values of films will continue to increase. Competition of digital rights is likely to get more intense with Jio likely to play an aggressive role either with partners Eros and Balaji Telefilms, or on its own," stated the report. (IANS)
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