Streaming services sub-license film rights to generate revenue

For better monetisation of acquired films, video streaming platforms in India are increasingly sub-licensing rights to both old and new movies, including same language versions for the dubbed ones. Amazon original Shershaah is now available on Viacom18 owned Colors as well as VOOT Select, so is the older film Goliyon Ki Rasleela Ram-Leela. New releases like the Telugu film Sita Ramam and Tamil film Vikram are available on Disney+ Hotstar as well as other OTTs. Vijay Deverakonda-starrer Dear Comrade is streaming on Amazon Prime Video as well as MX Player while the dubbed Hindi version of Tamil action drama Vikram Vedha is on Disney+ Hotstar as well as on MX Player. While exclusivity was their core USP earlier, such deals help platforms keep their film acquisition costs under control and help them increase the size of their libraries.

“The value for streaming rights have increased for big ticket films over the last two to three years. To keep content pipeline going, platforms do need to fine tune their strategies in order to keep acquiring new films to attract new subscriptions and at the same time keep enough films in their library to keep the existing subscribers engaged,” Gautam Jain, partner at media consulting firm Ormax said.

Co-sharing of rights for films which are older as well as for bigger, event films after the initial exclusive period is over, helps platforms to expand their libraries as well as offer latest films to customers, Jain added. “In India, OTT SVoD (subscription video-on-demand) users have an average of 2.4 subscriptions. Hence, having the same film on multiple platforms can add to the reach of the film without losing the audience for the platform showcasing the film at a later stage,” he pointed out.

A senior executive at a streaming platform said the popularity of a film, which was also available on other services, had not dipped and the acquisition, albeit non-exclusive made sense for them. “There is also a conscious strategy of selling a film to some smaller players once it probably goes off the radar for you. Even with newer films, a big title bought for Rs. 20-25 crore can be sub-licensed to another service for Rs. 3-5 crore to monetize better,” the person said declining to be named.

OTT platforms like Netflix, Amazon Prime Video, Disney+ Hotstar and VOOT did not respond to Mint’s queries on co-sharing film rights.

While all platforms are working on bringing out premium exclusive content in the form of originals, these films, shared with other platforms can help improve viewer stickiness, said film producer, trade and exhibition expert Girish Johar. “A platform might already have some marquee shows that are its prime offerings, adding films to its library will only give audiences a reason to stay back and retain subscriptions for a longer period,” Johar explained. In case of Disney+ Hotstar, for example, its Marvel and sports catalogue along with originals such as Koffee With Karan would give viewers more reason to stay on if there are popular film titles available alongside, even if some of them happen to be streaming on some other platforms as well.

Atul Mohan, editor of trade magazine Complete Cinema said the move follows practices of satellite television channels who also begin to share films after a certain period. “It’s pretty common for a channel to try and monetize a film that has had multiple telecasts and is garnering decent ratings, by licensing it for a much lower price than the original,” Mohan said.