Streaming platforms impact on second release window
Streaming platforms impact on second release window
Reportedly, with the streaming platforms overtaking market as the second release window, market for satellite TV rights of Hindi films has plunged over 50% post-pandemic due.
There is a significant drop with fewer films being sold on both TV and streaming. Producers focus on digital rights deals while TV channels adapt to diminishing returns and changing audience preferences.
Ironically, the once-lucrative market for satellite TV rights of Hindi films has seen a dramatic decline.
Films that once sold satellite TV rights for
Rs 20 crore are now fetching closer to Rs 10 crore amid the shift towards digital platforms, industry insiders said.
As per experts, with changing audience preferences, the market has turned much selective that only box-office successes and
star-studded films are attracting buyers, leaving most Hindi films unsold on both streaming and TV.
While satellite rights showed decline with the escalstion of streaming platforms like Netflix, Prime Video and Disney+ Hotstar, the drop accelerated amidst the pandemic when filmmakers released films directly on streaming platforms to cut losses due to cinema closures.
investor.
As per Shariq Patel, former CEO Zee Studios
Producers, acknowledging the immense financial opportunities and investments made by streaming giants, have increasingly turned their attention to these platforms as their primary avenue for selling film rights.
The shift of advertising revenue from TV to digital has also prompted broadcasters to reassess the return on investment (ROI) for acquiring movies.
According to industry estimates, broadcasters that previously allocated
Rs 400–800 crore for satellite rights now face significant cuts, with many reducing their budgets substantially.
Veteran media executive Neeraj Vyas, formerly with Sony Pictures Networks India, observed that with major films appearing on OTT platforms within weeks of theatrical releases, audiences increasingly prefer streaming over traditional TV, impacting viewership and ratings.
The gap amid theatrical and OTT releases is typically 8–10 weeks.
Vyas adda that films on TV earlier attracted strong ratings over multiple airings, however, now, even after just two or three broadcasts, there is a sharp decline in viewership.
Vyas further went on to add that the reallocation of ad budgets from TV to digital platforms has further impacted TV monetisation for the film genre.
TV broadcasting is feeling the financial impact of this shift, as digital platforms and e-commerce continue to capture a growing share of ad revenues that once predominantly supported TV.
Hindi film producers are also finding it tough to secure on-demand streaming deals amidst increasing selection and competition from across the country and the world.
As streaming services have matured, they have turned more selective in their acquisitions, focusing on financially sustainable content aligned with their brand.
Further adding that this selective approach has further intensified competition among producers, who now face the dual challenge of navigating lower satellite revenues and stricter streaming deals.
Even as satellite rights now account for only 20% of a film’s value, streaming contributes the remaining 80%.
To remain competitive, broadcasters are now looking to acquire both TV and digital rights of films to support their movie channels and streaming platforms.
Streaming platforms seek only digital rights.
According to Ruchi Tiwari, Chief Cluster Officer, Hindi movie channels notwithstanding these challenges, Hindi movie channels still capture 25% of TV viewership, with 70% of movie consumption on TV coming from iconic catalogue titles.
He noted that growth in the free-to-air (FTA) space has expanded viewership, especially for older films, which continue to perform well on television despite also being available on YouTube, he noted.
Ruchi Tiwari adds that although OTT offers a niche, premium experience, TV remains an accessible and affordable platform, ensuring sustained viewership for Hindi films and potential growth in revenues with realigned cost structures.
Adding that Industry stakeholders, including filmmakers and platforms, are adjusting cost structures to foster a healthier ecosystem for Hindi cinema.
Tiwari further shared that this dynamism makes him very optimistic about the growth of the Hindi film industry, which will provide an impetus for movie channels to increase their revenues with sustainable, realigned cost structures to reach healthy financial stability.
While agreeing with him that the movie genre remains a fundamentally strong content proposition, Vyas said the answer to the immediate situation could well be joint or co-licensing of certain large marquee titles, where broadcasters could enter into an agreement to mutually split the cost and divide the screenings of a title throughout the year.
This approach would ensure that films continue to attract satellite buyers, and broadcasters can alleviate the pressure while monetising the product.
Experts reveal that TV has seen a shift in audience profile, now catering more to the 30-plus age group, as younger audiences increasingly move towards other platforms. This shift is accompanied by growing viewership in second- and third-tier towns, highlighting the continued reach and buoyancy of television across these areas.
LV Krishnan, CE of Tam Media, in terms of content, it’s not streaming that directly impacts viewership but rather the type of movies that resonate with these audiences. Evergreen films continue to perform well on television, indicating a strong connection with viewers,”
From a return on investment (ROI) perspective, rerunning classic or older films offers better value compared to acquiring new releases, as these reruns reach the right demographic at a lower cost, delivering stronger ROI for broadcasters.
He added that the broader ecosystem reflects this trend, with even cinemas re-releasing blockbuster films from past years to attract audiences back to theatres, similar to how television capitalises on classics to draw viewership.
A case in point is
PVR Inox, which launched the Kareena Kapoor Film Festival, celebrating the 25-year illustrious journey of Bollywood star Kareena Kapoor Khan.
The re-release of popular films like Tumbbad, Laila Majnu, Rehnaa Hai Terre Dil Mein, and Veer Zaara has also contributed approximately 6% of Q2 admissions.
News Edit KV Raman
