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Saturday, Aug 04, 2007

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Satellite rights a dependable revenue source for Telugu film industry

Revenues thru rights sold to mobile cos may go up by 20%: Study

“All the producers need is some known names in the project. A director, a hero or a heroine with a hit to their credit.”

K.V. Kurmanath

Hyderabad, Aug. 3 Pushed to the wall with the mounting budgets, the Telugu film industry has found a new avenue — satellite rights to television broadcasters — offering the producers a dependable income. Income from this stream ranges from 10 to 30 per cent.

A FICCI-PriceWaterhouseCoopers study on the Indian Entertainment and Media Industry had estimated that revenues through rights sold to mobile companies and television broadcasters could increase by 20 per cent every year on a cumulative basis.

“This could be a little over 10 per cent of the+ overall pie by 2010,” the report predicted.

The rising demand for film-based content and growing number of channels are increasing the revenues gained through satellite rights.

Yamadonga, a junior NTR-starrer being directed by S.S. Rajamoulili, has fetched Rs 1.75 crore for the producers in the form of satellite rights, sources in the industry said.

This is nearly 10 per cent of the Rs 20-crore budget of the film that has raised a lot of expectations. “The avenue from this stream has emerged so dependable that some producers are announcing projects expecting assured revenues from this source,” they said.

“All they need is some known names in the project. A director, a hero or a heroine with a hit to their credit would do for getting sizeable satellite rights,” they said.

“The figure ranges from Rs 45 lakh to Rs 2.5 crore, depending on the budget or star cast,” Mr V.N. Aditya, a leading director, told Business Line.

Mr Anil Nayer, Director (Operation – India) of Motion Picture Association, said producers should look at options like these to expand their revenue base. “They should come out of the traditional mould of looking at theatrical revenues,” he said.

But for this they need to spare money and effort to protect their content from piracy , he pointed out.

Mr Ramkumar , a director, said that satellite rights did augur well for small producers.

“They can safely expect at least one-fourth of the amount they spend through these rights. The figure goes up or down depending on the names of technicians and cast involved,” he said.

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