Streamers Buy Satellite Rights: A New Film Deal Era

Pure-play streamers are now actively acquiring satellite rights, especially for mid- and small-budget films, over the last two months. This trend marks a notable shift in India's film distribution landscape, with platforms moving further up the content value chain.

Film trade analysts indicate that digital rights now constitute at least 75% of a film's non-theatrical revenue, with satellite rights contributing 20-25%. This change is attributed to meager growth in television advertising compared to the booming digital space. Consequently, satellite rights valuations have seen sharp declines, often by 80-90%.

The merger of Viacom18 and Disney Star has further altered opportunities for producers in satellite deals. Producers are now bundling satellite rights with digital rights when selling to streamers, as they can no longer rely on satellite rights as a primary revenue stream.

Acquiring linear rights serves as a defensive strategy for pure-play streaming platforms. By 'ring-fencing' content, they limit competition with linear television, aiming to preserve digital exclusivity and boost subscriber growth. These acquired rights can also be monetized later through syndication or licensing deals.