Indian entertainment industry: Five mistakes film producers should avoid

To say that COVID-19 has changed the way the entertainment world functions, would not be an understatement. While the ill-effects of the pandemic are waning, there are certain shifts that the last few years brought on, that are here to stay. For one, the reach of the Indian entertainment industry has transcended linguistic and geographical boundaries. Gone are the days when only a few of the 2500 films being produced annually in India managed to grab global attention. During the pandemic, borderless entertainment also came home in an unprecedented way and content from all over the world became the mainstay of housebound consumers. Content makers realized the power, penetration and affordability of technology and now they are seeing that there are unconventional avenues that can help them take their content to the whole world. The value of the Indian film industry in 2020 was estimated to be around INR 170 billion (approximately USD 2.3 billion), based on data from the Central Board of Film Certification (CBFC). In the subsequent years, the popularity of OTT platforms has phenomenally increased leading to aclamor for fresh, borderless content. Content is now literally the king. With reports suggesting that the time spent on OTT increased manifold post-pandemic, the OTT sector in India witnessed a 30% rise in the number of paid subscribers. Interestingly, 76% of surveyed consumers are expected to add to their current number of subscriptions. There are strong indications that more OTT players are on their way to join the field. Though new avenues of income have opened for producers, there are some mistakes that they can avoid by considering the following factors: Clarity in contracts If content is king, the contract is the commander that can lead a producer towards flourishing success or to disaster. One of the biggest mistakes producers make is not having internal and external contracts in place. Here, the term ‘internal’ refers to contracts that are signed within the team. ‘External’ contracts are the ones that a producer signs with distributors, OTT platforms, TV stations etc. A contract by definition outlines the terms and conditions of a transaction and is a critical document in any business dealings. Without a contract, both the buyer and seller are left vulnerable to disputes and misunderstandings. So all producers and creators must ensure that the contract is clear, covers all the key terms, and is legally binding. Revenue transparency mechanism Film rights today include digital rights, VR rights, and merchandising rights and there should be transparency in all these deals. Most of the content that is purchased today is being bought for revenue sharing and depending on the screen time, the platforms share the requisite amount with the producer. So there tends to be reduced enthusiasm on the part of OTT platforms to push films that they have chosen on a revenue-sharing basis. This is a huge blow for the small producers who hope to generate some income through revenue sharing but find their hopes crushed when their film loses out on a larger audience because of less visibility and is lost in the sea of films present on the streamers. There is also the important matter of the copyright of a film and producers must secure the IP of their content so that they can monetize it for long term benefits. Choose content that speaks for itself In today’s times, if the content is good, it is usually made available to a diverse audience in different languages. So, adaptations, lifting sequences or outright copying are becoming passe. At the same time, there is a huge demand for original and engaging content, and the whole world is hungry for stories they have never heard or seen before. Hence, it is the duty of writers, producers, and directors to strive to create original, brave and path-breaking content. Production houses in India tend to spend too much money on star fees rather on developing ideas that are fresh and can translate into relatable, meaningful and yet engaging entertainment. Small-budget films with good content too have an audience today and not just in India. At the other end of the spectrum, independent filmmakers who make valuable content are unable to reach big buyers, which diminishes the chances of their work to perform well globally. This is a potential goldmine that can be explored by producers who are looking for something different. Value proposition and due diligence At the end of the day, the producer is the owner of the content and it is s/he who should decide its value. Of course, there is something called a market price. But there is also this other factor we refer to as market pressure and the producer should not succumb to it. There should be proper due diligence every time a project is initiated and every expense should be documented. Another common mistake producers make is not taking the time to understand the value of their content and of their IP rights. This can result in either overpaying or underselling and therefore, it’s important to do proper research and know the market value of your work. Consider the positioning Content triumphs in every sense of the word when it creates a win-win for all stakeholders involved. Producers hence should position their product in such a manner that it reaches the targeted audience via innovative marketing campaigns that utilize the potential of technology, social media, even the metaverse or just connecting with the audience in a personal way that gives them a sense of ownership when they think of a film or a show on an OTT platform. There are many such strategies that can make a property stand out even in a congested content space. The author is the Chief Operating Officer at Producer Bazaar.com. Views are personal.  Read all the Latest News, Trending News,  Cricket News, Bollywood News, India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.