Once 3G services roll out in India, the film industry could have movie-goers eating out of the palm of their hands
The once-humble cell phone is setting the tone for a whole new era in entertainment, while also setting the cash registers ringing in the Indian film industry.
Filmmakers have already recognised the power of digital services like Pay Per View (PPV) films on Direct-to-Home (DTH) platforms as an additional revenue stream. Delivering content via mobile phones is the next logical step.
They’re calling it ‘entertainment-on-the-go’ or ‘mobile entertainment’ and it’s the next big thing for the film industry.
So how does the Indian film industry benefit from the business of downloads? According to Manoj Dawane, CEO, Mauj Mobile, “It is yet another interactive channel to distribute content, making Value-Added Services (VAS) an additional opportunity to generate revenue.”
The demand for mobile entertainment is huge. Sample this: The day Danny Boyle’s Slumdog Millionaire swept the Oscars, there were close to 1.5 million downloads for content related to the movie. Therefore, relevance and immediacy are among the main variables that determine the quantum of downloads.
At present, there are 400-odd million mobile subscribers in India, growing at the rate of 15 million new connections per month. This is likely to hit 700 million subscriptions by the end of 2010.
Though it is not possible to assess the number of downloads across content verticals through Mobile Value-Added Services (MVAS), Dawane says, “On an average, there are around 75,000 (WAP) downloads with film-related content through mobile phones, daily. With such a vast user base, producers can tap the MVAS market to their benefit.”
According to an IMRB – IAMAI report, MVAS is a Rs 5750 crore industry that is currently experiencing a Compound Annual Growth Rate (CAGR) of 40 per cent. MVAS can be broadly classified into four categories — music, images, videos and games. Wallpapers, ringtones, themes, animation, graphics, logos and even games based on films are readily available at prices ranging between Rs 3 and Rs 99.
The Caller Ring-back Tune (CRBT) component constitutes the largest single area of content and contributes to almost 40 to 60 per cent of the entire MVAS market.
The Indian Scenario
Hemant Jain, Senior Vice-President, Hungama Mobile, says, “Active users are listening to nearly 100 songs a month. Apart from this, they are also using a lot of content from recent Hindi film releases through full song downloads; mobile wallpaper downloads, various applications, games and much more. Therefore, the Indian consumer is hooked on to entertainment, which he can access any time, anywhere via the mobile device.”
When a film decides to dish out content through the MVAS platform, the content includes mobile games, wallpapers of actors starring in the movie, ringtones of songs from the film, CRBT and other such similar mobile applications based on the movie.
Jain adds, “Considering the mobile penetration in India, MVAS contributes a substantial amount of revenue-generation for a movie. It also creates a buzz around the film, which builds anticipation ahead of its release.”
However, some films have a greater potential than others to generate revenue via mobile phones. Take for instance films like Dostana, Kabhi Alvida Na Kehna and Singh is Kinng. These films included popular songs and other glamorous content and mobile downloads generated between 0.5 per cent and 2 per cent of the total revenue generated by each film.
Hiren Gada, Director, Shemaroo Entertainment Ltd points out that broadband penetration and the advent of superior telecom technologies like 3G in India have a lot to do with the popularity of mobile downloads.
“DVDs and other physical forms of content have major distribution challenges. These limitations can be overcome by delivering content through the mobile platform,” Gada adds.
Value for Money
Currently, telecom operators control the price point for streaming content on mobile phones. And it varies considerably between operators. Vodafone, for instance, charges 10 paise for a 10-kb download while Airtel doesn’t charge at all.
The price point also varies with the type of content and the package provided by the telecom operator. For instance, a Hungama subscriber can download unlimited songs, ringtones, wallpapers, videos and more at Rs 99 per month. There is also a variety of content to choose from value packs priced at Rs 20 through which any four ‘favourite’ items can be downloaded. Additionally, users can also download at Rs 10 a piece.
However, downloading content with a GPRS connection could cost anywhere between Rs 5 and Rs 100 for content such as mobile wallpapers, mobile games, full songs and videos.
As far as streaming is concerned, users are typically charged a monthly rental for subscribing to the service. After that, the consumer is billed on a per-minute usage basis for streaming of content.
The Road Ahead
Manish Agarwal, CEO, UTV New Media, says, “MVAS is at a nascent stage, so we need to straddle the rural and urban markets to tap its true potential. We have already experienced major gains by premiering films on DTH. Soon we may be able to monetise the mobile phone through movie premieres as well.”
Low bandwidth continues to be the biggest challenge faced by Indian content providers. Due to this hurdle, along with the challenges to mobile internet penetration, Indian VAS providers are unable to leverage the true potential of the industry. Once these issues are sorted out, VAS providers will be able to provide consumers with services that will redefine their mobile phone experience.
Agarwal adds further, “The music industry can also benefit a lot from film downloads. Once 3G plans roll out in India, movie demand for downloading and streaming will definitely increase, bringing more interactivity to the medium.”
Do You Know?
The top three downloaded actors: Shah Rukh Khan, John Abraham and Ranbir Kapoor
Actress: Aishwarya Rai Bachchan and Katrina Kaif
Ringtone/Film Music: Currently, Saif Ali Khan and Kareena Kapoor’s Kurbaan and Emraan Hashmi and Soha Ali Khan’s Tum Mile.
