Distribution of movies over the internet or by direct to home (DTH) satellite TV platforms will provide new forms of revenue for Indian filmmakers, delegates at the FICCI Frames 2012 conference have heard.
While digital distribution platforms only account for between three and five per cent of a film's revenues at present, this stream could double if the right platforms are created, a panel concurred.
"Internet is small in terms of revenue contribution, but it has grown from 0.3% to 3% in the last four years. I feel it has the potential to take over the home video segment, which contributed 10% of the revenues but has fallen sharply in recent years," said Jai Maroo, director, Shemaroo Entertainment.
"Piracy will continue to exist but there is also an opportunity to create a legitimate revenue stream," he added.
Siddharth Roy Kapur, chief executive of UTV Motion Pictures agreed, saying the opportunity to generate revenues from internet distribution of movies was "tremendous".
Vijay Singh, chief executive, Fox Star, who was also on the panel, said: "As content owners we want to milk the cow to the last dollar. We are all waiting for new platforms to come up but they have to be secure. Bollywood will have to look at internet to improve cost."