November 15, 2010 03:28:23 PM IST Abid, Glamsham Editorial
Just a few years back, producers and filmmakers used to make handsome profits by pre-selling the audio rights of their forthcoming projects to various music companies, who, due to the sheer magnitude of competition (and also because audio sales were booming at that time) simply had to pay these unheard of prices.
However with the advent of free downloads via internet, piracy etc the audio market has simply crashed and as a result big budgeted huge star cast films are now being acquired by the music companies for a meager amount. Trade is abuzz with the news of a recent big banner production venture that has been acquired by a leading music company for a miserly amount translating into just lakhs (whereas it should have fetched at least a couple of crores)!
Unfortunately, that is not the end of the story. Trade pundits are also predicting doomsday for satellite market and are pretty certain that with the kind of slump seen today, and pretty much the same scenario prevailing as with the audio rights market, the satellite market is likely to be the next victim. Here too satellite television channels in their bid to outdo each other are acquiring films (even flop ones) at astronomical prices. But the return is not as expected and so satellite channels too are facing huge financial crunch. So sooner or later the satellite market too is expected to crash and panic button has already been pressed.
Well, certainly not good news for the film industry and here's hoping that the producers and satellite channel owners learn their lessons from the audio market crash and have a fruitful relationship that would benefit both, and in turn the film industry.