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/2017/10/16/Chhota%20Bheem_0.jpg?itok=ehNRJugd
Chhota Bheem becomes Mighty with Netflix

CANNES: The studio behind the popular animated show Chhota Bheem, Green Gold Animation has been commissioned by Netflix to make an exclusive 13-episode series on its trademark show. Paradoxically titled Mighty Little Bheem, the series is set to be released in August 2018. Each episode of Mighty...

Specials Event Coverage Mipcom
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/10/06/Comic%20Con.jpg?itok=j3XJy58o
India-only Archie comics coming to Comic Con this year

NEW DELHI: Archie and the gang from Riverdale are officially coming to India this year in the Comic Con India Shows 2017 for Delhi, Mumbai, Bangalore and Hyderabad. Comic Con India, in collaboration with Archie Publications, has commissioned special #1 editions of popular Archie titles with the...

Specials Event Coverage Occasions
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/10/05/bi.jpg?itok=XN_laIsX
Broadcast India show to take place from 12-14 Oct

MUMBAI: The 27th edition of the annual B2B Broadcast India Show will be held from 12-14 October 2017 at Bombay Exhibition and Convention Centre, Goregaon, Mumbai. The three-day trade fair will witness the leading participants from across the globe present a wide array of products and technologies...

Specials Event Coverage Occasions
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/09/29/OTT-IDOS.jpg?itok=DHTboJ6P
IDOS 2017: OTT is here to stay but may not replace pay TV

NEW DELHI: The over-the-top (OTT) medium is here to stay and cannot be put down, but the television medium will continue to survive in the face of this challenge in India.

Specials Event Coverage IDOS
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/09/29/Rahul_Nehra-Vynsley_Fernandes-Anil_Wanvari.jpg?itok=oAsBp5QO
IDOS 2017: Tech needed to integrate different media in a single box

NEW DELHI: With the scenario changing to that of a multi-screen era, the need of the hour is to create a single technology that can deliver all systems into the home.

Specials Event Coverage IDOS
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/09/29/Partho_Dasgupta-IDOS17.jpg?itok=BYyk6SSI
IDOS 2017: Television is growing and will continue to do so, says BARC's Partho Dasgupta

NEW DELHI: Broasdcast Audience Research Council (BARC) India CEO Partho Dasgupta sounded a positive note at Indiantelevision.com’s 13th Indian Digital Operators Summit (IDOS 2017) in New Delhi’s The Lalit on 28 September 2017. Dasgupta stated that the video distribution ecosystem will have place...

Specials Event Coverage IDOS
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/09/29/idos_2017history.jpg?itok=bCC8mGVZ
IDOS 2017: Cable TV sector needs more collaborative broadcasters, say MSOs

NEW DELHI: Even as the multi-system operators and cable operator are doing their bit to aid digitisation, broadcasters need to participate more in the process which officially has been completed. They need to be more transparent and supportive of the distribution platform operator -- in this case...

Specials Event Coverage IDOS
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/09/12/charlie_1.jpg?itok=jlU0mgaX
Imagine Communications to host thought-leadership sessions at IBC2017

Imagine Communications has unveiled the schedule and speaker lineup for the IBC2017 edition of the company’s popular ImagineLIVE Power Sessions, a series of presentations and interactive discussions featuring prominent executives and experts from across the media and entertainment and IT industries...

Specials Event Coverage Occasions
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/08/30/ATF.jpg?itok=1aoo_Qe6
Green Gold backs first animation pitch at Asia Television Forum

Visitors to Asia’s leading entertainment content market and conference event - Reed Exhibitions’s Asia Television Forum in Singapore - will get to see Indian animation studio Green Gold Animation getting prominence. The Indian studio has become the first Indian company to get behind as the sponsor...

Specials Event Coverage ASIA TV FORUM

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories