After the government issued show-cause notices to six television channels last week for telecast of films that were rated ‘A’ by the Censor Board, the ministry of information & broadcasting (I&B) is said to be formulating a policy where even ?UA? rated films will have to be telecast only on a particular time slot, i.e., after 11 pm.
This move, if it becomes a norm, could seriously hurt the film industry?s revenues from satellite rights, which form a major chunk (almost 30%) of the earnings pie.
?Satellite revenues can go down as much as 50% if such a policy comes into action, and channels have to be selective and prudent about films they pick up,? said Neeraj Vyas, executive vice-president and business head, MAX, owned by Sony Entertainment Television.
?Primetime (8-11 pm) commands a premium as TV viewing reaches its peak between 9 and 10 pm across channels. It starts tapering off post 11 pm. Hence, producers stand to lose a lot,? he said.
The Film and Television Producers Guild of India, an industry body, is expected to meet ministry officials this week to arrive at a consensus on the issue. The guild fears that the 11 pm rule could ?bring disaster to the industry? and force producers to revisit their revenue models.
?Now the theatrical business has reduced and producers survive on satellite rights. If that avenue is killed, what we?ll see is dubbed Hollywood movies across channels,? says Mukesh Bhatt, vice-president of the guild and co-owner of Vishesh Films, a production company known for its bold movies.
Over the last two years, film production houses, which have increasingly become corporatised, have adopted a revenue model where they pre-sell a film?s satellite rights before its release in order to mitigate cost risks. Broadcasters, especially general entertainment channels, have picked up these movie titles at astronomical prices in a bid to outdo each other in the television ratings game.
Big-budget flicks, featuring the bankable Khans, have been sold to top channels for amounts as high as Rs 35-45 crore, which is more than the production budget of many small and medium films.
Most of these telecasts have happened on weekends in the 8 or 9 pm slot and recorded staggering viewership.
?Satellite broadcast is a crucial revenue component and such a restrictive norm will hurt the business in substantial terms,? said Tanuj Garg, CEO of Balaji Motion Pictures, which produced the A-rated The Dirty Picture, whose telecast on Sony was stalled at the last minute despite the film undergoing 52 cuts for TV.
?The rule should not be applied retrospectively for A films that have already released in cinemas and are awaiting a UA satellite certification or for potentially A films that are in advanced stages of production. These films have been budgeted months back and committed to production on the basis of a financial recovery plan, which includes satellite revenues,? he said.
While producers are crying hoarse over the 11 pm slot, advertising professionals see some positives. ?Producers should be willing to take up the 11pm slot for an A-rated film. It is a huge opportunity for a not-so-good film to make business,? said veteran ad film-maker Prahlad Kakkar. ?Channels can demarcate the advertising slot according to content and it will help in generating proper ad revenues out of it.?