Distribution Trends- India

8/2/2019 Distribution Trends- India

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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



Market Scenario: IndiaMarket Scenario: India

CURRENT Infrastructure

Highly under-screened

Most rigid Entertainment

Tax Structure

Huge territory -

Fragmented market

CURRENT Infrastructure

Highly under-screened


Tax Structure

Huge territory -

Fragmented market

FUTURE

Infrastructure

Rise of the multiplexes


Tax Structure - ???

Increased potential Requirement of wider

distribution networks e.g.

CTFI.

FUTURE

Infrastructure

Rise of the multiplexes


Tax Structure - ???

Increased potential Requirement of wider

distribution networks e.g.

CTFI.



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.



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.¶



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


Long run of the film assured

Piracy rampant!

TV and cinema did not

compete

FUTURE


Holiday and weekend

business

Piracy rampant- getting

worse!

TV - a fast emerging,

strong, low-cost competitor.

FUTURE


Holiday and weekend

business

Piracy rampant- getting

worse!

TV - a fast emerging,

strong, low-cost competitor.



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.´



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



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



ua on na ys s: s r u on

methods


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




methods


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



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



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



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!´



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



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



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



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



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.



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



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.



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


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


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


market realities

Better cash flows

Selective µsales¶ at

mouthwatering prices



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.



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

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Distribution Trends- India

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