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Mint
15-05-2025
- Entertainment
- Mint
Pricey Hollywood tickets deter Indian moviegoers, dent box office in 2024
NEW DELHI : Hollywood films commanded a big premium at Indian box office in 2024, with average ticket prices soaring to ₹245, significantly outpacing local language cinema, said the latest Ficci-EY media and entertainment report. However, theatre owners are pushing back against this high-pricing strategy, warning that it is discouraging footfalls, particularly in small towns, contributing to one of Hollywood's weakest box-office performances in the country in nearly a decade. The average Hollywood ticket price of ₹245 towers over the all-India average of ₹134 and handily beats local languages like Hindi ( ₹203), the report said. Theatre owners emphasise that despite dubbing efforts, Hollywood's insistence on high ticket prices in India is alienating a significant portion of the movie-going population at a time when fewer films are achieving commercial success. With footfalls at 38 million and a 17% decline in box office, 2024 marked one of Hollywood's weakest years in India in the last decade, according to media consulting firm Ormax. This was the first time since 2015 that the industry failed to surpass the ₹1,000-crore mark in annual box office collection, excluding the pandemic-affected years of 2020 and 2021. Also read | Smalltown content creators can now play in the big leagues. All they need is AI. 'The high price floor set for Hollywood films is a struggle for smaller towns and markets like ours that are very price-sensitive. You're basically outpricing a large section of the population," Bihar-based exhibitor Vishek Chauhan said. In such cases, films tend to be extremely front-loaded, making most of their revenue over the first weekend and are unable to expand beyond the core fan base, Chauhan added. The latest Marvel film, Captain America: Brave New World, for instance, made ₹9.25 crore out of the total ₹18.45 crore box office earnings over the first weekend. In 2024, Deadpool & Wolverine, too, had clocked in ₹64.55 crore over the opening weekend alone, before going on to make ₹128.40 crore in total. Clear on targets Trade experts like Chauhan said Hollywood studios are quite clear about targeting only a specific, upmarket audience for their films, and therefore stick to high-pricing strategy. Besides, they tend to think of ticket rates in India in dollar equivalents, which may not seem unreasonable to them. 'At a time that big franchise films are anyway not coming and Hollywood content no longer working like it used to, higher prices only compound and aggravate the problem," Chauhan said. Also read | A.R. Rahman copyright case revives a frequent clash Pranav Garg, managing director at Maya Palace, a two-screen cinema in Muzaffarnagar, said there are other reasons for the prices of Hollywood films remaining higher than other languages. In case of American movies, VPF (virtual print fee), which is a cost usually borne by producers to show their films using digital projectors and technology supplied by digital service providers (DSPs) such as UFO Moviez and Qube Cinemas, is paid for by theatres. Plus, there is the expense for equipment such as 3D glasses, common for Hollywood movies. Making up with hikes Cinemas try and make up for these extra charges by hiking ticket rates. 'Also, it is uncommon for Hollywood films to get pirated and leaked like Indian titles do, so there is more incentive to come to theatres. That said, with so many films not working lately, exhibitors are taking off their DCI projectors," Garg said. As a rule, American studios only take their films to DCI (digital cinema initiative)-compliant theatres in India. DCI is a joint venture of several film studios, including Metro-Goldwyn-Mayer (MGM), Paramount Pictures, Sony Pictures Entertainment, 20th Century Fox, Universal Studios, Walt Disney Co., and Warner Bros, to set up a common set of requirements that ensure a high and uniform standard of digital cinema viewing. Also read | Amazon Prime Video to start ads from 17 June; will offer paid ad-free options 'The average Hollywood film generally appeals to a higher socio-economic market and often makes it to more premium properties because the studios know who they are catering to. But given that Hollywood is now in the same boat as other languages, with no real blockbusters, especially over the last 18 months, the pricing may need to be kept in mind," Rahul Puri, managing director, Mukta Arts and Mukta A2 Cinemas, said.
Mint
07-05-2025
- Entertainment
- Mint
Film broadcast rights slide 10% in 2024 as medium struggles with shift to streaming, piracy and content problems
With video streaming platforms now the go-to medium for movies after their run in cinemas, the value of TV broadcast rights fell 10% in 2024, while Hindi movie viewership comprised just 18% of the total movie genre audience, according to the latest Ficci-EY report. Broadcast rights for films declined to ₹ 1,300 crore in 2024 from ₹ 1,500 crore in 2023, Ficci-EY said in the report released late March. Experts attributed the decline to films premiering on digital much before linear television, along with piracy, which dents the revenue for any project to varying degrees. Further, Hindi films no longer suit the tastes of family audiences in north India, where viewership, if any, is dominated by dubbed southern films. 'Satellite rights for movies have been in structural decline and no broadcaster is going aggressive on acquisition rates given that the cable and satellite growth numbers are flat. Plus, there is only so much you can make from advertising," film producer Shariq Patel said. While there is no demand for smaller-scale, non-star films at all on TV, with the industry grappling with a huge number of unsold movies, Patel added that the rights of southern films are acquired at a lower cost than premium Hindi films. 'Their stars are not just more recognisable in the Hindi belt now, the movies are also more TV-friendly than, say, urban-centric Bollywood. Their entire tonality is more mass-market," Patel explained. Other than the wider perception that films will be available on OTT platforms within eight, and in some cases, four weeks, experts said all movies are struggling with the big problem of piracy where even big-ticket, star vehicles are available on messaging apps and other services on the day of release. 'So many people in small towns are able to watch pirated versions of new movies on local cable channels. All films are available post 12 pm on the Friday of theatrical release. In such a scenario, where will satellite money come from?" asked Yusuf Shaikh, business head of feature films at production and distribution firm Percept Pictures. Broadcast industry executives said even theatrical successes fail to grab eyeballs on TV on premieres or subsequent runs. This has led to a decline in advertising rates, which don't justify the steep price that producers ask for while selling satellite rights for their films. Box-office successes such as Kalki 2898 AD didn't strike satellite TV deals before or immediately after release. The broad understanding is that TV has been relegated to the third medium of content consumption, after the advent of video streaming platforms such as Netflix, Amazon Prime Video, and ZEE5. Some say that this is a problem of content and lack of appeal for TV audiences. As far as Hindi movies go, broadcasters say mid-budget, experimental and slice-of-life films that are made more often in Bollywood have not found favour with family audiences over the past few years. While titles such as Badhaai Ho and Queen struck big at the box office, especially in big cities and multiplexes, they are hardly a saviour for broadcasters when it comes to single TV households across India. 'Cable television may no longer be a metro phenomenon, but movie viewing does take place on TV in tier-two and tier-three towns where internet penetration may not be that great. TV isn't going away anywhere but it is a problem of content," film producer, trade and exhibition expert Girish Johar said.
Mint
25-04-2025
- Business
- Mint
OTT platforms gain ground in India, but YouTube's dominance endures
YouTube continues to dominate India's online video market. Despite a proliferation of premium streaming services, the Google-owned platform commanded a staggering 92% of all video consumption in 2024, leaving subscription and ad-supported (AVoD, or advertising video-on-demand) rivals to jostle for the remainder, according to the latest Ficci-EY report. Industry experts say user-generated content is now easier to create than ever before, thanks, of course, to the availability of cheap data and smartphones. As a result, creators have mushroomed across the tiniest of Indian towns, producing quality content and sharing on YouTube for the world to see. By contrast, streaming platforms spend a lot of money and time to create content, only to be pegged back by their limited reach and viewership, hurting their monetization potential. 'YouTube continues to dominate online video viewership because it's not just a platform—it's a cultural engine. It earned its position by being early, but more importantly, by being everywhere. For other premium platforms trying to carve out meaningful share in the video content space, the answer won't be copying YouTube—it'll be about leaning into what makes them different,' said Preranaa Khatri, chief business officer at Only Much Louder (OML), a media and entertainment company. What really sets YouTube apart is how it balances scale with personalization, Khatri added. Its recommendation algorithm, constantly learning from user behaviour—searches, watch time, engagement—ensures people find what they didn't even know they were looking for. Further, it constantly introduces new monetization streams to incentivize creators, letting them earn not just from ads, but also from YouTube Shopping, Memberships, Super Chats, Super Stickers and YouTube Premium revenue. YouTube Shopping allows creators to promote products from their own stores or other brands within their content, enabling viewers to browse and purchase items directly from YouTube. Memberships allow for benefits like exclusive or premium content, live streams and other perks. YouTube Super Chat is a feature that allows viewers to purchase highlighted chat messages during live streams, which can sometimes appear at the top of the chat feed. Super Stickers are also a way for creators to connect with fans. Premium is a paid feature that does away with ads. At the same time, tools like YouTube Create have made video production much easier than ever—be it filters, effects, transitions, all from one's phone. Meanwhile, features like the Copyright Match Tool and YouTube Studio's AI enhancements (including auto-dubbing and the new Inspiration Tab) have helped creators manage content and scale creatively across languages and geographies. The disproportionately high share of YouTube in India's streaming industry is not surprising at all, according to Girish Dwibhashyam, a streaming industry expert. Creators in tier-2 and tier-3 towns are today able to edit and curate better content at far lower prices than professionals. 'For OTT platforms, on the other hand, there is hardly any incentive to keep pumping in money since the economics are challenging because of low CPMs (cost per mille—a paid advertising option where companies pay a price for every 1,000 impressions an ad receives),' Dwibhashyam said. To be sure, user-generated content is of inferior quality compared to that on streaming platforms, but the latter's limited reach means their monetization potential is restricted, as brands keep away. 'The dominance of YouTube over OTT platforms in India presents significant challenges for the media industry. While YouTube benefits from its ad-supported model and user-generated content, OTT platforms rely on high-budget, professionally shot content, which demands more time, money and effort. This creates monetization struggles and higher user acquisition costs for OTTs, as they also face content discovery challenges and competition for brand partnerships,' said Yogesh Saini, marketing head at Civic Studios, a media production company. Additionally, YouTube's AI-driven recommendations and regional content capture wider audiences, while OTTs must invest heavily in marketing and localized content. To compete, OTT platforms need to reduce friction in app downloads, innovate quickly, and improve content accessibility for users, Saini added. First Published: 25 Apr 2025, 06:00 AM IST
