Later one time broadcasting rights, which allows the channel to air the film only for one day within very few days of release, also started to earn good income for Hindi producers. Thus within three weeks of theatrical release, their satellite rights were sold for good prices. Due to this advantage, since the beginning, Hindi film industry was selling domestic satellite rights within a year and overseas satellite rights within a few months from theatrical release. Hindi films reaped huge collections almost immediately after the release through nationwide release and global level sales.
The producers encashed that demand without skipping a beat. After the arrival of big names like Sony and Star, there was a massive demand generated for software related to Hindi film industry. Thus having realized their movies’ value, producers demanded and obtained fair prices for them. Immediately, fellow Hindi channels jumped in the arena and thus competition set in much earlier. After the fall of videos and rise of satellite channels, Zee, India’s first Hindi satellite channel started to garner most of the Hindi film satellite rights. It is undeniable that the producers earned good revenue through this process in the times when video was still famous. It is Hindi producers who pioneered the culture of releasing videocassette rights very soon after the film’s theatrical release. As the reach of Hindi movies is pan-India and their movies enjoy worldwide business, they became clever and assertive in selling the rights pretty soon. Hindi producers, though were selling the rights as cheap as we do, they fixed that mistake much earlier.
The TRAI recommendations came after the I&B ministry wrote to it on Augseeking its advice on the rates of annual licence fee and feasibility of adopting a revenue sharing model as applicable in the DTH sector for uplinking or downlinking of TV channels.Hindi film industry is different in many ways.
With this in mind, the authority recommended that the fees prescribed in the uplinking and downlinking guidelines should be increased by a factor of 1.5.ĪLSO READ | As PM Modi unveils G20 logo, India readies to display global muscle in elite grouping The TRAI, however, noted that the Wholesale Price Index (WPI) has increased by a factor of approximately 1.2 since 2011.įurther, if the recommendations are accepted by the ministry, the licence fees will likely remain effective till the next review of the fees. Therefore, the licence fee structure should be simple and the amount of licence fee should be moderate. In its recommendation, the authority stated that they were aware that a very high fixed fee per annum can act as an entry barrier to the new entrants into the sector. The ministry has decided not to increase the licence fee as of now,” said the source. “The I&B ministry has put on hold the TRAI’s recommendation.
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