Why JioHotstar and Zee5 are buying satellite rights of films and what it could mean for Bollywood and the future of TV
Since the advent of digital platforms 10 years ago, it has become a common practice for filmmakers to approach TV channels to sell the satellite rights to their films and as for digital rights, they approach the streaming giants. However, in recent times, the trend has shifted – in an unusual move, streaming platforms are now acquiring the satellite rights. As per an article in The Economic Times, dated February 23, a leading law firm in India confirmed that in the past two months, both pure and hybrid streamers had been showing clear interest in buying satellite rights. The article also cited examples of Kis Kisko Pyaar Karoon 2 and Mana Shankara Vara Prasad Garu, whose satellite as well as digital rights were picked by Jio Hotstar and Zee5, respectively.
Why JioHotstar and Zee5 are buying satellite rights of films and what it could mean for Bollywood and the future of TV
An insider from the OTT industry told Bollywood Hungama, “This is a trend started by JioHotstar and Zee5. Initially, Mana Shankara Vara Prasad Garu was with Amazon Prime Video, but they backed out. Zee had the satellite rights and they bought the digital rights as well. Meanwhile, Kis Kisko Pyaar Karoon 2 was pre-sold to JioHotstar with satellite and digital as they had the rights to the first part as well. They had the data of the TRPs and based on that, they offered a hefty price.”
Suniel Wadhwa, co-founder and director at film production and distribution firm Karmic Films, confirmed that this practice is in place, “There are two reasons for streaming platforms to acquire the satellite rights. One reason is to block the satellite. It means that those in tier 2 and 3 towns, who want to watch the film on television, won’t be able to do so. The idea is that these people will buy the subscription of the platform to watch certain films, thus leading to an increase in the number of subscribers.”
He continued, “Secondly, once they have a library of 50-60 films, they’ll either launch their own channel or monetize by giving away the rights to a TV channel.”
A leading producer confirmed that even Amazon Prime Video and Netflix are in talks to commence this practice, “It’s seen as a win-win situation by the streamers and the filmmakers. With satellite valuations dropping by 80-90%, bundling these rights with digital allows producers to recover costs faster in a single negotiation, especially for small and mid-budget films that struggle to find independent TV buyers. Also, streamers prevent linear TV from airing the movie for ‘free’, forcing viewers who want to see the film to subscribe to their platform.”
He further said, “Streamers can act as ‘sub-distributors’. They can hold the rights and later license the film to TV channels at a time of their choosing, creating a new long-term revenue stream for the platform.”
An industry insider, requesting anonymity, said the trend may solve an immediate monetisation problem for producers but could create a larger valuation imbalance over time.
However, another producer cautioned, “As power concentrates in the hands of a few giants, producers might have fewer buyers to pitch to. They’ll be forced to accept lower ‘take-it-or-leave-it’ bundled deals. Also, let’s not forget that large sections of the Indian population still rely on linear TV. If a streamer sits on satellite rights to maintain digital exclusivity, these audiences may never get to see the film.”
He continued, “Streamers tend to favour ‘algorithm-friendly’ content. If they become the primary gatekeepers for satellite rights, smaller films that don’t fit the ‘trending’ mould might find it even harder to get distributed. Lastly, this may further lead to a decline in TV ad revenue and a potential collapse of the traditional TV model.”
The filmmaker cautioned, “We have already experienced it in the pandemic when streaming giants were given insane amounts of money for our films and one day, they backed out. I fear the same might happen again in this regard. Already, the satellite market is down due to preference for OTT, and this practice can further do harm.”
Also Read: Kis Kisko Pyaar Karoon 2 releases on JioHotstar: How a well-made comic caper got crushed in cinemas due to multiplex snub, bad release timing, Dhurandhar wave; novel re-release plan derailed at the last minute
More Pages: Kis Kisko Pyaar Karoon 2 Box Office Collection , Kis Kisko Pyaar Karoon 2 Movie Review
Tags : Amazon Prime Video, Amazon Prime Video India, Features, JioHotstar, Kis Kisko Pyaar Karoon 2, Mana Shankara Vara Prasad Garu, Netflix, Netflix India, OTT, OTT Platform, Prime Video, Prime Video India, Satellite Rights, Streaming platforms, Suniel Wadhwa, Television, TV, Zee5
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