Today, in this episode of Reel to Real, we will try to understand the business model of the film industry.
Previous films were previously earned from the release of theater, music and satellite rights. Now this whole system has changed with the arrival of the OTT platform. Digital rights have not only changed the habits to watch films by the public, but have also given a new challenge to the theater sector.
Now, the question raises if OTT has created new opportunities for the film industry or that the theater industry has damaged? Now, the films are made only for theaters or for OTT? What is the most beneficial model for producers? The success of films no longer depends on the box office now?
Today’s today’s coil will try to understand this business model. For this, we had a special conversation with filmmaker Pranjal Khandhadia, the Shabbir Boxwala and the film analyst Raj Bansal. During this conversation, we will know in which direction the film industry is now going and what new changes can occur.
Now strategy: dependence on OTT and theater affairs
Today, the films have become more dependent on the liberation of OTT rather than the theatrical exit. The OTT platforms publish a direct digital by buying film rights, which changed the objective of producers.
During Corona, the public had the chance to watch movies for free on OTT. The films did not come out in the theater. The films that were released were available on OTT itself. It has changed the public habit. They gradually used Ott. OTT obtains one year of entertainment in a set ranging from RS 15 to Rs 2000.
The theater costs 3000 to 3500 by adding tickets, canteens, parking and travel of 600 rupees. Despite this, it is not a guarantee that the film will be good. There was also a period when Hindi films did not work in the theater and South films captured the theater.
Why did the bad phase of Hindi cinema began?
When the Hindi film industry is in trouble, South films are constantly succeeding. The success of South Cinema is the best music, strong stories and good directors behind the success of South Cinema. Apart from that, ticket prices are also normal, which leads to a large number of audiences in theaters.
South has big stars like Ntr, Chiranjeevi, Mahesh Babu, Rajinikanth and the faithful Fan Clubs of Kamal Haasan, who help each film to have a big business. These actors ensure that their audience gets the best entertainment at a low price, which attracts the public to theaters.
Has South Cinema adopted more new strategies?
He adopted another intelligent strategy to have South cinema recognized at Pan India. He began to give small but important roles to the great actors of Northern India in his films. Actors like Ajay Devgan, Alia Bhatt, Astabh Bachchan, Deepika Padukone and Sanjay Dutt were thrown into southern films, which also increased the impact of these films on the North India market.
After Bahubali, KGF, RRR and many other films in the South have also become great success in the North. The directors of the South provide 2-3 years on their films. Focus on sets and make films with complete dedication. Due to the arrival of the studio maker system of the film industry in Hindi, a little has become negligent.
What was the change in the studio system?
The filmmaker Pranjal Khandaria said – earlier, the producer used to make films with his combination. He used to get out of the films with the same connection, but in the past 20 years, the arrival of the studio system has benefited both. Money started to come from the business and things have changed. The producer used to focus solely on making films. The other things manage the studio.
Now the producer is no longer in danger. During this, the Hindi films have experienced a growing growth and today, we are talking about an annual turnover of 15 thousand crores. While producers of the 80s and the 90s made a film by taking money at a thick interest rate. Even the land and the goods had used the filming of the film by mortgage.
Now many studios have stopped finance film in Hindi
Many producers do not take their films very seriously due to studio systems. Producers often get studio support, which makes their concentration turn away from the quality of the film. Raj Bansal said many studios have stopped financed Hindi films because they don’t get good yields. Although there are many opportunities for new producers, they have to pay particular attention to history, music and directions for this.
Producers ignoring directors are also a major problem. There are many directors experienced in the industry, who are unemployed today. Because new producers and studios do not give them work. There was a time when the bad phase of Hindi cinema began.
Stars include the problems of producers and distributors
Many stars like Salman and Shah Rukh Khan have made money, given the problems of producers and distributors. Salman Khan returned approximately Rs 35 to the distributors after “Tubelight” did not work at the box office. At the same time, when Shah Rukh Khan’s film, “Jab Harry puts Sejal”, did not run, he returned about 15% of his amount in MH studios and around 30% of other distributors. Earlier, Shah Rukh made the money on films like “Ashoka”, “Pasheli”.
What is the role of distributors and exhibitors?
The role of distributors and exhibitors is also important. There were 50 to 100 distributors on each territory during the last round of the 90s and at the beginning of 2000, but now the number fell to 5%. Now, the distribution work has come in the hands of limited distributors. Earlier, there was no cinema chain, but now there are large cinema channels like PVR, stainless steel, Gold and Mirage.
There is generally a 50 to 50 formula when the new film was released. In which 50% of the cinema chain and 50% of the distributor obtain. When many films are published on the same day, a conflict between distributors and exhibitors begins. In such a situation, great controversy begins. Due to which there is a confrontation between cinema channels and distributors several times.
In cinema, now not an investment once, but the income plan in several steps is necessary – Shabbir Boxwala (producer)
The activity of the film industry is no longer limited to the theater collection. Factors such as satellite, music, digital rights and redesign are now opening new gain.
1. Satellite and musical rights: Do films still have backup income?
The rights of previous satellites and music were the “pre-Garden revenues” of any film. Even before the release of the film, the television channels and the music labels used to face the crores, which led producers to avoid the risk of theater. Now this business model has changed. From now on, the OTT and TV channels adopt a “wait and look” strategy.
Earlier, they used to buy films before the release, they now decide the price after watching the performance of the film at the box office. The “only Hit Works” formula has also arrived in the music industry. If the songs are successes, the film gets an additional life, otherwise musical rights do not bring a lot of important yields.
New commercial model: It is now very important to plan when the films will come to the digital platform after the theater.
2. OTT and business theater: Who depends on who?
Earlier, OTT worked after platform films, now films are behind OTT. The OTT platform wanted new content each month, so it used to buy films by giving a high price. Now, the OTT platform is now to see how the theatrical performance of the film is, only then we pay the right price.
New Business Model: Now the film industry will have to adopt a hybrid liberation strategy to balance the theater and OTT.
3. New game of small budget films: not just content, correct marketing is necessary
It was easy to make a film for the first 50 to 60 Lakh and release it in the theater. Now marketing and digital promotion have become important.
4. Small budget films can now win in two ways
Selling directly on OTT. By releasing small towns or unique screen theaters, plan to go to OTT.
New Business Model: Now the strategy to reach the little films of the good target audience will have to be made, only the film will not work in the theater.
5. Relocate the old films: can it become a way to win again?
The demand for successful old films increases due to the lack of content in the theater industry. When new great films do not come, theaters must win by releasing the old successful films “Content Evergreen”. Re -lals of films like Sanam Teri Kasam, Tumbad, Tum Bin are part of this model.
New Business Model: Now filmmakers will have to make their old films’ “background strategy”, so that the old content can also generate income.
6. In the cinema sector, now not “an investment once”, but the “income plan in several stages” is necessary
Now, the gains of films’ winnings is not just dependent on the theater collection. Each producer will have to develop theater, digital, satellite, music and replenishment models.
Theater + ott = hybrid version model
Music + digital promotion = Identification of the successful film
Relocating + correct use of old films = long -term business
_____________________________________________________________
How to pass films from the censorship council: he is not allowed to ban;
Does the censorship council really allow the right to ban a film? In “Udta Punjab”, the board of directors had ordered to cut around 89 scenes, but the court approved the release of the film with a single cup, which was negligible. …