22.11.08

Pay-per-view DTH to help combat piracy

The nebulous, techsavvy network of film pirates, who specialise in stealing copies of first-run movies to distribute them globally on the Internet or on DVDs, have got competition. Film production houses are sewing up deals directly with direct-to-home (DTH) operators, hitting out at pirates where it hurts the most. In the digital era, piracy poses a far bigger financial threat to the film industry, given that it has become more sophisticated, lucrative and elusive than ever before. By teaming up with DTH operators, film production houses are ensuring new revenue opportunities to market their films and boost sagging sales. Vikram Kaushik, CEO of Tata Sky confirms the trend. “We are aiming to put relatively new films on the DTH platform. The need to do so has always been very strong, given that the biggest plague for cinema is piracy. Not only does it take away revenue from producers, they get very little out of the whole business with more than 30% going towards tax,’’ he adds. DTH operators are also talking with producers to release movies on the same day as the theatre release, or within a month of its release. “Not only can we share the revenue with producers, we can remove the roots of piracy by legitimately monetising the proceeds,’’ he adds. Even digital cable operators have jumped in. You Telecom is the first multi-system operator to introduce the service in India, through its You Multiplex. EVS Chakravarthy, CEO, You Telecom says: “We have tied up with leading movie content aggregator Shemaroo, with legal movie distribution rights to get the service going. Having legal rights to distribute movies through satellite or the cable platform ensures the content is piracy-free.’’ With a current subscriber base of over 12 million growing annually at a rate of 35%, DTH operators are providing film-makers a captive audience to showcase their products. “Emergence of various revenue streams beyond traditional box office is changing the face of the Indian film industry,’’ agrees a Big TV spokesperson. “Currently, film revenues are dominated by theatrical exhibition sales, covering domestic and international markets. Over the last few years, satellite rights have emerged as a key revenue generator. Going forward, new medias (mobile content, gaming among others) and DTH pay-per-view are set to be the key streams for film-makers to generate revenues,’’ he adds. According to FICCI, the size of the Indian film industry was approximately Rs 9,600 crore (in 2007). It is estimated to touch Rs 17,600 crore by 2012. The industry is expected to maintain a CAGR of approximately 13% for the next four years. Tata Sky already has an exclusive tie up with Palador Pictures and with Sony Pictures, Fox and UTV Movies. According to a report by SSKI Research, the potential of pay-per-view in the Indian scenario is huge. In 2007, revenue sources for the Indian film industry was 75% towards domestic theatrical (in the US:37%), 9% towards overseas theatrical (US:25%), 7% towards home entertainment (US:18%) and 9% towards ancillary (includes pay-per-view with DTH), which contributed 20% in the US market.

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