The Indian film industry lost Rs 5 billion to piracy in 2011 and has suffered a loss of 20% of its revenue over the last three years due to its battle with film piracy. The situation has worsened and now pirated copies are available the day the movie hits the theater. Sooner than later, Indian eyes have opened up to the Satan
destroying their profits. Bollywood biggies have started to appeal to the masses to go to movie halls and stop downloading or buying pirated copies.
The single biggest mistake made by the entertainment fraternity is that all the measures adopted put onus on the users for piracy control. But what about bearing the load of responsibility on your own shoulders. The user has been fielded with two options. First, you watch the movie in the multiplex shelling out more than what most of the movies deserve. Second, you download the movie using your internet connection through the numerous links available. The choice is simple. People do what rationality implies. They use their ever improving broadband speeds to download the movies from the comfort of their couch. Isn’t it too much to expect that people will stop downloading pirated versions just on the request of Bollywood actors. After all, who wants to spend when you can get it for free?
The solution
A simple way to get consumers to stop trading illicit digital copies of music and movies is to provide them legitimate alternative and that too at a justified price. As the trend has already started, it makes sense for film makers to sell the streaming rights to online channels in case their films do not do substantial business in the first week. This will enable producers to recover their investments in short span. In 2006, when Rajshri productions released their movie 'Vivah' online simultaneously with the theatrical release, they did not realize that they had changed the movie revenue model for ever. With multiple distribution platforms such as broadband, television and mobile in place, it takes just days to recover the sum. So even with low turnouts in the theaters, the movie becomes a profitable venture for the producers.
Even if you stop piracy, how do you generate extra revenues?
The connect between stock markets and Bollywood is poles apart. Still, it did not hinder filmmakers to learn a trading concept called futures and options. Here, you sell your product before it is ready to sell like pre- selling your crop before harvest. This helps in reducing the risk by spreading it to more people. Likewise, Bollywood has learned to pre sell its movies before the release. The selling rights consists of distribution, satellite, home video/music, merchandising and online distribution. Dabang-2 made the headlines by selling the satellite rights to Star Network for nearly Rs 50 crore. The music of the film has been sold to T-Series for Rs 10 crore. So even before producer Arbaaz Khan begins making the movie, he has his bank account full. Shahrukh starrer Don-2 also sold the satellite rights to Sony for Rs 37 crore. Not bad, indeed.
Going further, other opportunities for preventing Piracy and giving the content creators alternate source of income will be explored.
