Any idea about their business revenue model

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clairvoyance

@clairvoyance

Inactive

Posted: 7 years ago

If anyone who knows business of bollywood

What is the revenue earning model for Amazon prime,Netflix ,Alt Balaji?

In cinemas, theatrical run is the primary source of revenue generation followed by TV rights etc etc

But when a streaming chanel like AMazon prime takes a bollywood movie how does it earn?

1. If u all say through subscribers. then the Rs 999 subscription is for a year and people are watching abundant content with that 999. The subscribers for amazon even if gets bigger wont be sufficient to recover the price at which amazon prime bought so many movies.

2. If you say advertisers. I see the advertisers are limited in amazon, Alt Balaji. Its not like the advertisements we see in TV.

Even Alt Balaji is churning out shows after shows for her app. How is balaji earning then?

Recently Reliance Jio has partnered with RK films( Roy Kapur Films of Sidhharth Roy Kapur) for web content.

Any idea , other than subscription and advertisement how would they earn revenue??

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TheBoss

@TheBoss

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Posted: 7 years ago

Royalties. They get paid every time someone watches their movie. It doesn't sound much but if it's a continuous stream if money than no money then why not.

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clairvoyance

@clairvoyance

Inactive

Posted: 7 years ago

Originally posted by: TheBoss
Royalties. They get paid every time someone watches their movie. It doesn't sound much but if it's a continuous stream if money than no money then why not.

okay

but if it leads to profit maximisation i doubt

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Zennia

@Zennia

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Posted: 7 years ago

They also get advertising revenue share I guess. And generally Amazon airs films that has stopped working on theaters. So its not a big loss for these producers to stream their products on Amazon.

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TheBoss

@TheBoss

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Posted: 7 years ago

Originally posted by: clairvoyance

okay

but if it leads to profit maximisation i doubt

Nobody buys DVDs anymore. The money is in streaming media. You can either let your movie collect dust or get few more dollars out of it with online streaming providers

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anjs

@anjs

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Posted: 7 years ago

dont they show ads in-between the shows ?? I have seen that on hotstar, we see quite a few advertisements in-between the shows...

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Seig heil

@S_H_Y

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Posted: 7 years ago

Originally posted by: anjs
dont they show ads in-between the shows ?? I have seen that on hotstar, we see quite a few advertisements in-between the shows...

You are using free version.

If you use paid subscription it would be ad free.

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Seig heil

@S_H_Y

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Posted: 7 years ago

Movies earn by selling their rights to digital streams and companies like Amazon earn money through paid subscription.

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anjs

@anjs

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Posted: 7 years ago

Originally posted by: --L--

You are using free version.
If you use paid subscription it would be ad free.

oh ok...

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TheRager

@TheRager

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Posted: 7 years ago

#10

Originally posted by: clairvoyance

If anyone who knows business of bollywood

What is the revenue earning model for Amazon prime,Netflix ,Alt Balaji?

In cinemas, theatrical run is the primary source of revenue generation followed by TV rights etc etc

But when a streaming chanel like AMazon prime takes a bollywood movie how does it earn?

1. If u all say through subscribers. then the Rs 999 subscription is for a year and people are watching abundant content with that 999. The subscribers for amazon even if gets bigger wont be sufficient to recover the price at which amazon prime bought so many movies.

2. If you say advertisers. I see the advertisers are limited in amazon, Alt Balaji. Its not like the advertisements we see in TV.

Even Alt Balaji is churning out shows after shows for her app. How is balaji earning then?

Recently Reliance Jio has partnered with RK films( Roy Kapur Films of Sidhharth Roy Kapur) for web content.

Any idea , other than subscription and advertisement how would they earn revenue??

Regarding Amazon Prime Jeff Bezos has told many times it is a way to get people to buy other stuff from Amazon. So they measure the profits by how many Amazon Prime members watched a show/movie and then later went and purchased something else on Amazon. There was a whole article I read recently on it.

Netflix mainly makes profit from its subscription. They charge Rs.500/month whereas Amazon Prime comes at Rs. 999/year. But Netfilx content especially their foreign original content is much better than Amazon. I think in the long run their Indian original content will be better too.

Alt Balaji recently got funding from Jio and like you said Jio is also investing in others like SidRK's PH. I guess Jio's plan is similar to Amazon. That is content on its Jio platform from Alt Balaji and others will be used to drive up its own subscription as they wont keep giving freebies and need another differentiator.

Overall though in a few years the digital content will have to perform and be subjected to measurement by rating agencies. Otherwise the bubble will burst.

Edited by TheRager - 7 years ago