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Satellite channels free to air movies one year after release

Satellite channels can now procure Hindi movie rights from producers after one year of theatrical release. Earlier, they could air the movies only after five years.

Film producers and distributors representing the Central Circuit Cine Association signed an agreement to this effect. If they violate the norms and sell the rights to satellite channels before one year of theatrical release, producers will have to share 50 per cent of their revenue with distributors.

“No channel could wait for five years to screen a big movie. One year is a reasonable time lag to commercially exploit such films,” said ETC Network director Yogesh Radhakrishnan. Cable channels, which could air movies after six months of release, will be able to obtain rights only after a gap of one year. They can, however, telecast the movies which are priced up to Rs 25 lakh. “We have brought the cable and satellite rights on par. The measure will help us to combat piracy. And we are opening the door for commercial exploitation from every new technology including the Internet,” said All India Film Producers Council president Pahlaj Nihalani.

Faced with competition, satellite channels like Star TV and Sony TV used to buy rights from film producers before five years of theatrical release at astronomical prices. Producers would violate their agreement with distributors and sell the rights to the satellite channels. But they had to pay a penalty of Rs 2.50 lakh per territory to the distributors.

“Ghulam aired by Star Plus started the trend. We had to put a check to the practice. The producer, the distributor and the buyer stand to gain,” said Nihalani.

But will cable channels stand to lose? “There is no difference now between satellite and cable channels. Which is why we decided to bring them on a uniform level. A cable movie channel like CVO is available in a wide number of cities including the metros and has a reach comparable to a satellite channel,” said Nihalani.

A producer, however, can still sell the rights to channels before the one year period if he decides to release the movie himself and has not sold it to the distributor.

A joint committee comprising five members each from the All India Film Producers Council and the Central Circuit Cine Association will be set up soon to ensure the implementation of the agreement and settle disputes between the producers and distributors.

How could the producers and the distributors come to an amicable settlement? “The number of film prints at the time of release has increased. Distributors feel they can finish their exploitation over a one year period,” said Nihalani.

Sibabrata Das