Film industry feels downturn pinch
Will our celebrity filmstars take pay cuts due to the global recession? Likely, if industry veteran Subhash Ghai is to be believed. “Stars and artistes have to take a cut in their prices,” he told HT. Saurabh Turakhia & Roshmila Bhattacharya reports.india Updated: Feb 04, 2009 00:58 IST
Will our celebrity filmstars take pay cuts due to the global recession? Likely, if industry veteran Subhash Ghai is to be believed. “Stars and artistes have to take a cut in their prices,” he told HT.
It’s because films are making less money now — not because they're flopping at the box office, but because there aren’t very many buyers for home video and satellite TV rights. Prices for these have slumped as a result. Ashok Ahuja, director-distribution and IPR management for Percept Picture Company confirmed this, saying “There is indeed a slump”.
Even a year ago, a big film could bring in as much as Rs 1 crore from the sale of home video rights for five years. Satellite TV rights would go for as much as Rs 12 crore.
Not any more. Home and video rights of many big-budget movies like Tashan, Drona, and Thoda Pyar Thoda Magic are not finding takers.
“We’re back to where we were in 2005,” says Ghai. He says, “we have to go back to the prices of 2005-06, we cannot afford the prices of 2008.”
Blame it on the economic downturn. Broadcasters are wary of shelling out huge sums for satellite TV rights because of falling advertisement revenues. “There is pressure on pricing because broadcasters are facing pressures with advertising revenues,” Nitin Sood, Chief Financial Officer of PVR Ltd says.