Post on 06-Apr-2018
8/2/2019 Distribution Trends- India
http://slidepdf.com/reader/full/distribution-trends-india 1/23
³Front-loading your Grosses!´³Front-loading your Grosses!´
A Perspective on the Changing Paradigms in
Indian Film Distribution
A Perspective on the Changing Paradigms in
Indian Film Distribution
8/2/2019 Distribution Trends- India
http://slidepdf.com/reader/full/distribution-trends-india 2/23
Market Scenario: IndiaMarket Scenario: India
CURRENT Infrastructure
Highly under-screened
Most rigid Entertainment
Tax Structure
Huge territory -
Fragmented market
CURRENT Infrastructure
Highly under-screened
Most rigid Entertainment
Tax Structure
Huge territory -
Fragmented market
FUTURE
Infrastructure
Rise of the multiplexes
Most rigid Entertainment
Tax Structure - ???
Increased potential Requirement of wider
distribution networks e.g.
CTFI.
FUTURE
Infrastructure
Rise of the multiplexes
Most rigid Entertainment
Tax Structure - ???
Increased potential Requirement of wider
distribution networks e.g.
CTFI.
8/2/2019 Distribution Trends- India
http://slidepdf.com/reader/full/distribution-trends-india 3/23
Market Scenario: IndiaMarket Scenario: India
CURRENT E ntertainment Software
Increasing entertainment
options: clutter
Pre-sales the order of the day.
Hence, marquee values, stars,
big names defined BO success.
Increasingly discerning viewer
CURRENT E ntertainment Software
Increasing entertainment
options: clutter
Pre-sales the order of the day.
Hence, marquee values, stars,
big names defined BO success.
Increasingly discerning viewer
FUTURE
E ntertainment Software
Growth of entertainment
software not proportionate to
infrastructure: clutter.
Emergence of different films for
different µfolks¶. Leading to
market segmentation in terms of
audience, positioning, strategies
and communication. Story-line and content lead the
way.
FUTURE
E ntertainment Software
Growth of entertainment
software not proportionate to
infrastructure: clutter.
Emergence of different films for
different µfolks¶. Leading to
market segmentation in terms of
audience, positioning, strategies
and communication. Story-line and content lead the
way.
8/2/2019 Distribution Trends- India
http://slidepdf.com/reader/full/distribution-trends-india 4/23
Market ScenarioMarket Scenario
CURRENT
C orporatisation
Distribution/Marketing
set-ups ranging from non-professional to semi-
professional
Lack of organised
funding.
CURRENT
C orporatisation
Distribution/Marketing
set-ups ranging from non-professional to semi-
professional
Lack of organised
funding.
FUTURE
C orporatisation
Professional set-ups will
lead the way.
Emergence of µorganisedfunding¶ - not only for the
big banners but for µgood
scripts.¶
FUTURE
C orporatisation
Professional set-ups will
lead the way.
Emergence of µorganisedfunding¶ - not only for the
big banners but for µgood
scripts.¶
8/2/2019 Distribution Trends- India
http://slidepdf.com/reader/full/distribution-trends-india 5/23
Market ScenarioMarket Scenario
CURRENT
Life of a film, piracy and others
Long run of the film assured
Piracy rampant!
TV and cinema did not
compete
CURRENT
Life of a film, piracy and others
Long run of the film assured
Piracy rampant!
TV and cinema did not
compete
FUTURE
Life of a film, piracy and others
Holiday and weekend
business
Piracy rampant- getting
worse!
TV - a fast emerging,
strong, low-cost competitor.
FUTURE
Life of a film, piracy and others
Holiday and weekend
business
Piracy rampant- getting
worse!
TV - a fast emerging,
strong, low-cost competitor.
8/2/2019 Distribution Trends- India
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Can a traditional distribution model
cope with the future?
Can a traditional distribution model
cope with the future?
³If everything seems under your control,
you are just not going fast enough.´
³If everything seems under your control,
you are just not going fast enough.´
8/2/2019 Distribution Trends- India
http://slidepdf.com/reader/full/distribution-trends-india 7/23
The
Traditional
Distributor
Lack of systemized approach,
little professionalism
Lack of
marketing expertise
Largely flat sales
or M.G.- led
Potentialdistributorshedging risks,also cherry-picking
Localized and
limited reach
Limitedreview
system
Compensationsfor under-performingproduct
Payment problems
8/2/2019 Distribution Trends- India
http://slidepdf.com/reader/full/distribution-trends-india 8/23
O ption 1
Do it yourself and play safe:
- prone to risks (therefore, the true potential of the film
not explored),
- limited reach,
- cost inefficient
- small releases, small gains,
- very limited clear run in a cluttered market.
- limited µshare of the consumers¶ mind¶
O ption 1
Do it yourself and play safe:
- prone to risks (therefore, the true potential of the film
not explored),
- limited reach,
- cost inefficient
- small releases, small gains,
- very limited clear run in a cluttered market.
- limited µshare of the consumers¶ mind¶
Situation Analysis: Distribution
methods
Situation Analysis: Distribution
methods
8/2/2019 Distribution Trends- India
http://slidepdf.com/reader/full/distribution-trends-india 9/23
ua on na ys s: s r u on
methods
ua on na ys s: s r u on
methods
O ption 2
Flat sales
- Merely hedging risk
- The upside (quite substantial at times) often taken by
third party.
- Lack of control over own property
O ption 2
Flat sales
- Merely hedging risk
- The upside (quite substantial at times) often taken by
third party.
- Lack of control over own property
8/2/2019 Distribution Trends- India
http://slidepdf.com/reader/full/distribution-trends-india 10/23
ua on na ys s: s r u on
methods
ua on na ys s: s r u on
methods
O ption 3
Build a grass roots distribution and marketing model
- controlling your destiny(in terms of distribution as well
as marketing)
- enhancing chances of success
O ption 3
Build a grass roots distribution and marketing model
- controlling your destiny(in terms of distribution as well
as marketing)
- enhancing chances of success
8/2/2019 Distribution Trends- India
http://slidepdf.com/reader/full/distribution-trends-india 11/23
Evolution of the modelEvolution of the model
Explored
- Systemized model
- Synergistic
opportunities through
tie-ins
- cut costs/increase
revenues
- crash lead times
Would this
possibly lead to
- restrictions on
future plans?
- clash of corporate personae
- low failure buffers (time,
costs)
- a collapse if scarcity
of resources
GENESIS SYNTHESIS POTENTIAL PITFALLS
ESTABLISHING
DISTRIBUTIO N
NODES
Choice of partnerbased on
- Best deals- Facilities/resources
8/2/2019 Distribution Trends- India
http://slidepdf.com/reader/full/distribution-trends-india 12/23
The Need of the HourThe Need of the Hour
To take the film to the audiences:
wherever they might be,
whenever they would like to see it,
in a place they would like to see it in.
Increase playability in a cluttered market
Ensure a wise revenue model: take the moneywhen it is available
To take the film to the audiences:
wherever they might be,
whenever they would like to see it,
in a place they would like to see it in.
Increase playability in a cluttered market
Ensure a wise revenue model: take the moneywhen it is available
8/2/2019 Distribution Trends- India
http://slidepdf.com/reader/full/distribution-trends-india 13/23
The Key to the FutureThe Key to the Future
F ront-load your grosses!
³A film is like a parachute.
If it doesn¶t open- you are dead!´
F ront-load your grosses!
³A film is like a parachute.
If it doesn¶t open- you are dead!´
8/2/2019 Distribution Trends- India
http://slidepdf.com/reader/full/distribution-trends-india 14/23
The Golden Rules of ³Front-loading´
Focus
Get Closer
Go Higher
Get Stronger
Go Faster
The Golden Rules of ³Front-loading´
Focus
Get Closer
Go Higher
Get Stronger
Go Faster
8/2/2019 Distribution Trends- India
http://slidepdf.com/reader/full/distribution-trends-india 15/23
Rule 1: FocusRule 1: Focus
No more guessing games on the right playdate :
# 1 or bust?
Take into consideration market needs: holiday periods, low
clutter, market dynamics.
No need to fill holes in theatre programming.
No more guessing games on the right playdate :
# 1 or bust?
Take into consideration market needs: holiday periods, low
clutter, market dynamics.
No need to fill holes in theatre programming.
Picking the perfect play date: step 1 to success
8/2/2019 Distribution Trends- India
http://slidepdf.com/reader/full/distribution-trends-india 16/23
Rule 2: Get CloserRule 2: Get Closer
Efficient marketing strategy that drives viewer interest - Talk thelanguage of the audience.
Lead the way with Innovation.
± Market research including awareness,interest and urgency testing and exit polls.
± Market Segmentation and positioning
± Cost-efficient, intrusive media planning
± Cross promotions and brand associations ±
more value for the marketing rupee
Efficient marketing strategy that drives viewer interest - Talk thelanguage of the audience.
Lead the way with Innovation.
± Market research including awareness,interest and urgency testing and exit polls.
± Market Segmentation and positioning
± Cost-efficient, intrusive media planning
± Cross promotions and brand associations ±
more value for the marketing rupee
Marketing: an Investment
8/2/2019 Distribution Trends- India
http://slidepdf.com/reader/full/distribution-trends-india 17/23
Rule 3: Get StrongerRule 3: Get Stronger
Holistic, pan-India distribution strategy :
Grass-roots distribution model
Integrated model / One-stop shop:
distribution, marketing, forecast and research.
Stronger co-ordination for
The Print Explosion
± One is too many, 500 is not enough.
± Go Wide, Go Deep
Holistic, pan-India distribution strategy :
Grass-roots distribution model
Integrated model / One-stop shop:
distribution, marketing, forecast and research.
Stronger co-ordination for
The Print Explosion
± One is too many, 500 is not enough.
± Go Wide, Go Deep
Strong Distribution:No customer, market or opportunity beyond reach
8/2/2019 Distribution Trends- India
http://slidepdf.com/reader/full/distribution-trends-india 18/23
Rule 4:
Go Faster
Rule 4:
Go Faster
Sweep the money off the table when it is available:
± Take advantage of the marketing hype and front load your grosses in the
opening weekend and first two weeks.
± Week-end and holiday business
± Hit hard , Hit fast
more screens and big marketing support, before the next competitive
release
Sweep the money off the table when it is available:
± Take advantage of the marketing hype and front load your grosses in the
opening weekend and first two weeks.
± Week-end and holiday business
± Hit hard , Hit fast
more screens and big marketing support, before the next competitive
release
Success through speed.
Grab the opportunity when it is available.
8/2/2019 Distribution Trends- India
http://slidepdf.com/reader/full/distribution-trends-india 19/23
The SPE AdvantageThe SPE Advantage
O perational Strengths Marketing Strengths
Values from the Parent
Experience in Variety
Pan India Infrastructure
O perating Systems Relationship with Exhibitors
Power of 2 studios
Localisation
Positioning Strategy
Trailoring Strategy
Merchandising Plans Research and Tracking
Promotions and Placements
8/2/2019 Distribution Trends- India
http://slidepdf.com/reader/full/distribution-trends-india 20/23
Support SystemsSupport Systems
Intraplan and Business Intelligence:
24:7 collection and data analysis system from each and every theatre
Merchandising System:
24:7 publicity display and tracking system
Cohesive distribution, marketing, analysis and finance teams across thecountry
Infrastructure and systems for speedy turnarounds
y Project Management: include Prints and Advertising in overall projectcost.
Intraplan and Business Intelligence:
24:7 collection and data analysis system from each and every theatre
Merchandising System:
24:7 publicity display and tracking system
Cohesive distribution, marketing, analysis and finance teams across thecountry
Infrastructure and systems for speedy turnarounds
y Project Management: include Prints and Advertising in overall projectcost.
8/2/2019 Distribution Trends- India
http://slidepdf.com/reader/full/distribution-trends-india 21/23
The Result: ProfitabilityThe Result: Profitability
Better penetration
Direct involvement with
exhibitors
Better understanding of
customers
Better Logistics
Better marketing initiatives
Marketing and
Better penetration
Direct involvement with
exhibitors
Better understanding of
customers
Better Logistics
Better marketing initiatives
Marketing and
Increase in overall reach
Better print utilization
Faster reaction time
Grass Roots Distn. : direct
connect with end consumer
Better understanding of
market realities
Better cash flows
Selective µsales¶ at
mouthwatering prices
Increase in overall reach
Better print utilization
Faster reaction time
Grass Roots Distn. : direct
connect with end consumer
Better understanding of
market realities
Better cash flows
Selective µsales¶ at
mouthwatering prices
8/2/2019 Distribution Trends- India
http://slidepdf.com/reader/full/distribution-trends-india 22/23
The Road AheadThe Road Ahead
y Exchange of data and generation of business using the web.
y Increased Multiplexing-smaller screens the order of the day.
y
Segmentation of the market and positioning of films to the righttarget audiences.
y Front-load your grosses:
recover your money when the consumer is interested and notdistracted by other forms of entertainment.
y Exchange of data and generation of business using the web.
y Increased Multiplexing-smaller screens the order of the day.
y
Segmentation of the market and positioning of films to the righttarget audiences.
y Front-load your grosses:
recover your money when the consumer is interested and notdistracted by other forms of entertainment.
8/2/2019 Distribution Trends- India
http://slidepdf.com/reader/full/distribution-trends-india 23/23
³All mankind is divided into three classes:
those who are immovable, those who are
movable, and those who move.´- Benjamin Franklin
³All mankind is divided into three classes:
those who are immovable, those who are
movable, and those who move.´- Benjamin Franklin