Telugu360 has earlier reported how PPV (Pay Per View) of OTT (Over-the-top) entertainment solutions is going to dent overseas movie distribution business. We have reported how PPV model of Yupp TV can disrupt overseas distribution model. Yupp is now a household name and with its aggressive marketing has made huge inroads into digital TV space in Indian community. Beginning of this year, Yupp launched an ingenious business model with PPV (Pay per view). NRI audience are used to PPV concept for watching movies and games. So as soon as PPV was launched for Telugu movies, NRI audience welcomed the concept. Who wouldn’t want to just pay $5 to watch the movie at comfort of your living room with friends and family? Yupp TV screened Oopiri in 4th week, Kshanam in third week.

As we reported earlier, if this were to continue, it is going to disrupt the overseas distribution model. People  would just wait instead of watching in theaters and also effect of piracy is going to make things worse for distributors. After we wrote this article, we heard from multiple distributors that they are making sure there are riders in the contract when they buy the overseas rights for a movie that digital screening screening rights cannot be given until movie is exhibited on Satellite. This way, distributors are nullifying the effect of PPV screening. This is part of the reason why no other movies on PPV in the last few months (Oka Manasu is an exception).

But we still think that it is a matter of time before a new model comes and disrupts the overseas distribution model. Every model with abnormal pricing is ripe for disruption. Think about how a technology start up Uber upended Taxi industry. Even better, think of how Netflix has driven Blockbuster video to bankruptcy. This is bound to happen where technology drives overpriced incumbents out of business. Distributors and producers also have to be reasonable with pricing and not kill the golden goose…

(Image courtesy : Yupptv.com.)

— Krishna.