Bollywood dims as streaming platforms steal the spotlight, TV rights fall

Satellite TV rights for Hindi films have plummeted by over 50 per cent as streaming platforms surge, reshaping the market; producers face tougher competition, with TV's viewership also declining

The market for satellite TV rights of Hindi films, once a profitable segment, has sharply declined, with values dropping by over 50 per cent since the pandemic. This drop is attributed to the rise of streaming platforms as the second release window for films, coupled with rising monetisation challenges, according to The Economic Times.

 

Satellite TV rights that once sold for Rs 20 crore are now going for around Rs 10 crore, as streaming platforms gain ground, the news report mentioned. As audience preferences evolve, the market has become more selective, with only major box-office hits and star-led films attracting buyers. Many Hindi films now remain unsold on both TV and streaming platforms.

   

The decline in satellite rights began with the rise of streaming giants like Netflix, Prime Video, and Disney+ Hotstar, but the trend accelerated during the pandemic when films were released directly on digital platforms due to theater closures.

 

The Economic Times quoted Shariq Patel, former chief executive of Zee Studios, saying that producers have increasingly turned to these services to sell their films. The shift of advertising budgets from TV to digital platforms has further prompted broadcasters to re-evaluate the return on investment (ROI) for acquiring film rights. 

Estimates show that broadcasters who previously allocated Rs 400–800 crore for satellite rights have now slashed their budgets, with many making substantial cuts, the report said.

Viewership impact on TV channels

The report quoted veteran media executive Neeraj Vyas, formerly with Sony Pictures Networks India, as saying that the growing availability of films on OTT platforms soon after theatrical releases has shifted audience preferences from TV to streaming, impacting TV viewership and ratings.

 

The typical gap between a theatrical release and an OTT release is now 8-10 weeks.

 

Vyas added that films that once generated high ratings over multiple TV airings now see significant drops in viewership after just two or three broadcasts. The reallocation of ad spending to digital platforms has also affected TV’s ability to monetise films, he said as quoted by the report.

Competition from streaming deals

Hindi film producers now face tougher competition for on-demand streaming deals as platforms become more selective in their acquisitions. With an increasing number of options available, streaming services are prioritising content that aligns with their brand identity and is financially viability, Patel said.

 

This selective approach has heightened competition for producers, who are dealing with both declining satellite revenues and more restrictive streaming deals, he further said.

 

Satellite rights now account for only 20 per cent of a film’s overall value, with streaming contributing 80 per cent. Broadcasters are responding by seeking both TV and digital rights for films to support their movie channels and streaming services. Streaming platforms, however, only pursue digital rights.

TV channels maintain viewership

Despite these challenges, Hindi movie channels still command 25 per cent of TV viewership. Ruchir Tiwari, chief cluster officer for Zee Entertainment’s Hindi movie channels, said that 70 per cent of movie consumption on TV comes from iconic catalog titles.

 

The growth of free-to-air (FTA) channels has bolstered viewership, especially for older films, which continue to perform well on TV, even with availability on platforms like YouTube.

 

While OTT offers a premium experience, TV remains an affordable and accessible option, ensuring consistent viewership for Hindi films and potential for revenue growth with realigned cost structures, Tiwari said, as quoted by the report.