FILM production house Eros International’s new release, Aa Dekhe Zara, will become the first film to be available on demand for direct to home (DTH) service users less than two weeks after its cinema hall release, as multiplex owners and movie producers continue to squabble over sharing revenue from box office sales.
Recently DTH service providers came to the rescue of another filmproduction house UTV’S ‘Oye Lucky Lucky Oye’, which lost out on revenues from multiplexes because of the Mumbai terror attacks.
Eros, in a deal with Dish TV, spent Rs 3.5 crore on marketing the movie. “Unfortunately, due to the ongoing boycott of new films by multiplex owners, the movie could only be released on single screens and not in the multiplex chains,” said Eros International chief operating officer and commercial director, Jyoti Deshpande.
To make up for the loss of box office sales at multiplexes, the movie production house has inked a revenue sharing deal with Dish TV to showcase the movie. “We have not decided on the pricing of the movie yet. But movie producers are waking up to the importance of DTH industry, which has 11 million subscribers, of which Dish TV has about 5 million,” said Dish TV COO Salil Kapoor.
Usually, DTH service providers charge their viewers Rs 75-100 for a day. Dish TV claims it received 50,000 hits for the movie ‘Fashion’ showcased on its movie-on-demand service and believes it will get a similar response for Aa Dekhe Zara.
“We have seen 15% increase in the number of subscribers accessing movies through this service,” he added. Besides Dish TV, Eros is talking to other DTH service providers such as Tata Sky. A senior executive with a management consultancy service said, the price for rights to air movies on satellite channels has dropped by 40-60% in the last few months.
“DTH movie-on-demand service is emerging as an alternative revenue stream for film producers. However, it will take a few years for it to become a significant revenue churner for DTH companies as well as movie producers,” he said, refusing to be identified. Movie producers either charge a minimum guaranteed amount from DTH companies for screening their content, or sign a revenue share deal. On the other hand, TV channels buy satellite rights for movies for three-to-five years, which they then rent to other channels to maximise returns. Most DTH providers believe video-on-demand servive will start contributing 4-5% to their overall revenue in the next couple of years.
Source: Welcome - Times Of India ePaper
The Economic Times: Page 16
Recently DTH service providers came to the rescue of another filmproduction house UTV’S ‘Oye Lucky Lucky Oye’, which lost out on revenues from multiplexes because of the Mumbai terror attacks.
Eros, in a deal with Dish TV, spent Rs 3.5 crore on marketing the movie. “Unfortunately, due to the ongoing boycott of new films by multiplex owners, the movie could only be released on single screens and not in the multiplex chains,” said Eros International chief operating officer and commercial director, Jyoti Deshpande.
To make up for the loss of box office sales at multiplexes, the movie production house has inked a revenue sharing deal with Dish TV to showcase the movie. “We have not decided on the pricing of the movie yet. But movie producers are waking up to the importance of DTH industry, which has 11 million subscribers, of which Dish TV has about 5 million,” said Dish TV COO Salil Kapoor.
Usually, DTH service providers charge their viewers Rs 75-100 for a day. Dish TV claims it received 50,000 hits for the movie ‘Fashion’ showcased on its movie-on-demand service and believes it will get a similar response for Aa Dekhe Zara.
“We have seen 15% increase in the number of subscribers accessing movies through this service,” he added. Besides Dish TV, Eros is talking to other DTH service providers such as Tata Sky. A senior executive with a management consultancy service said, the price for rights to air movies on satellite channels has dropped by 40-60% in the last few months.
“DTH movie-on-demand service is emerging as an alternative revenue stream for film producers. However, it will take a few years for it to become a significant revenue churner for DTH companies as well as movie producers,” he said, refusing to be identified. Movie producers either charge a minimum guaranteed amount from DTH companies for screening their content, or sign a revenue share deal. On the other hand, TV channels buy satellite rights for movies for three-to-five years, which they then rent to other channels to maximise returns. Most DTH providers believe video-on-demand servive will start contributing 4-5% to their overall revenue in the next couple of years.
Source: Welcome - Times Of India ePaper
The Economic Times: Page 16
