Specials

For scale, industry needs to evole subscription models: Ronnie Screwvala







 






MUMBAI: The Indian media and entertainment industry is dangerously tilted towards advertising revenues across segments and for it to considerably scale up, subscription models have to mature.


Consumers need to pay more for their entertainment if the sunshine industry is to grow at the pace it should.


"There are no companies of scale in that sense. The biggest problem is that all the segments are heavily dependent on advertising revenues. Even in movies, the sale of theatrical rights to broadcasters is a significant revenue stream - and the channels are dependent on advertising. The industry has to evolve subscription models," said UTV Software Communications founding chairman and CEO Ronnie Screwvala, while delivering the valedictory address at Ficci-Frames 2011.


Consumers do not want to pay for the content that they consume. “Due to this, the industry is heavily dependent on advertising revenues. Almost 80 per cent of the revenues come from advertising and this is the problem with all the models. You have to develop other revenue streams like subscription,” Screwvala said.


The industry is just $15 billion now and should be growing at least 20 per cent.


“With the given scale of the media industry, we should be growing at 20 per cent or even more like the other sunshine industries,” said Screwvala.


Emphasising on the need for scale, he said that the media and entertainment industry would attract talent only when there is scale.



On the rampant piracy prevalent in the film industry, he noted that it is restricting the sector to a mere 7 per cent growth rate, which is "actually a de-growth if you take into account the inflation rate".


He said the stakeholders need to put up large sums of money upfront to fight the menace of piracy. The proliferation of piracy was primarily due to the lack of enforcement - and not lack of regulation.


Talking about the way forward, Screwvala said the industry needs to move from an advertising-led growth model to subscription-led growth, undertake research into audience preferences, ensure enforcement of anti-piracy laws, and innovate to make it a truly creative business.


He also said that there is need to segregate gut feel from research in trying to find out what the audience want. He urged the younger players in the media and entertainment business to regard research as a good guiding force, by which one could pre-empt what’s going to be a hit or otherwise.


Screwvala was gung-ho about new media and said the introduction of 4G spectrum would be a “game changer”.


"But let us not waste this opportunity. 4G should be developed as a subscription-led and not ad-supported model," Screwvala warned.
 

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/11/Inside-Digital-India%20%281%29.jpg?itok=CnwOsdre
Rs 12 billion budgeted for 'Digital India' '17-18

With the Government’s emphasis on cashless and paper-less working, electronic governance gets the highest chunk of Rs 4.0055 billion out of the overall budget of Rs 12.1642 billion set aside for Digital India for 2017-18.

Specials Budget Budget 2017
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/10/Ravi-Shankar-Prasad%20%281%29.jpg?itok=Xf9axe3G
Ravi Shankar too hopes DTH will support Swayam

Union Minister of Electronics & Information Technology and Law & Justice Ravi Shankar Prasad said, “The budget of Modi government for 2017-18 is historic and unprecedented. This is a budget for bold India, clean India, eager to tap its potential. Based on the pillars of efficiency,...

Specials Budget Budget 2017
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/08/deep-sengupta%20%281%29.jpg?itok=tSmYMgrN
Budget '17: SAP enables mid-sized cos to go digital

Aligning to the Union Budget 2017, SAP SE announced the launch of SAP S/4HANA Private Cloud, the next generation business suite tailored for midsize companies, which will be available at a simple and affordable subscription pricing.

Specials Budget Budget 2017
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/07/Untitled-1_1.jpg?itok=GUdW5mAy
Budget '17: Rural net will facilitate travel bookings

The union budget has broadly focused on themes such as the farming sector, the tourism industry, development of road network, and infrastructure. The high speed internet connectivity in rural areas will now be the biggest advantage to the travellers.

Specials Budget Budget 2017
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/07/Nippon%20TV-800x800.jpg?itok=mQBFe8uo
MIP '17: Nippon TV gears up with two scripted, three non-scripted formats

MUMBAI: Having recently been crowned ratings champion for the third consecutive year in Japan, coupled with the tremendous success of its scripted drama Mother which has received numerous offers from around the world and is a ratings success in Turkey as ANNE, Nippon Television Network Corporation...

Specials Event Coverage Miptv
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/03/Untitled-1_0.jpg?itok=xexBn2BM
Budget '17 initiatives will drive overall demand, believe startups

Startups are in a celebratory mode after the presentation of the Union Budget 2017 by the finance minister Arun Jaitley. He announced that small businesses with an annual turnover of Rs 50 crore will now have to pay five per cent less income tax, in order to make micro, small and medium enterprises...

Specials Budget Budget 2017
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/03/BUDGET02%20%281%29.jpg?itok=7R6eUsBF
Top M&E industry honchos see no major benefit from Budget '17

MUMBAI: With the Union Budget’s focus on rural and infrastructure sectors, the media and entertainment (M&E) industry seems to be disappointed as the budget does not offer much. Though the sector is hoping to get some benefit through the digital push mentioned in the budget, expectations were...

Specials Budget Budget 2017
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/02/INSIDE%20%281%29.jpg?itok=2a1xE-59
Budget '17: Leading digital players hail sectoral boost

“Digital economy helps in cleaning up the system, has transformational impact, energises private investment through low-cost credit, and benefits the common man,” asserted finance minister Arun Jaitley while announcing the Union Budget 2017 on 1 February. The budget 2017 emphasised a lot on the...

Specials Budget Budget 2017
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/02/prasar%20bharati-800x800.jpg?itok=K9OEduaZ
Budget '17: Prasar Bharati grant-in-aid down, film sector's aid up

NEW DELHI: The grant-in-aid for Prasar Bharati has come down marginally from the revised estimates from Rs 4500 million in 2016-17 to Rs 4300 million for 2017-18. This includes a grants-in-aid to the pubcaster of Rs 3500 million and a separate grant-in-aid to it for the Kisan Channel of Rs 800...

Specials Budget Budget 2017

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories