Indian TV Production Shifts to Content Ownership for Digital Monetization

The Indian television production industry is undergoing a significant transformation as studios pivot from a legacy commissioning model to one focused on creating and owning content. Historically, broadcasters would fund TV shows, retaining all intellectual property (IP) rights while producers earned a fixed fee. However, with linear TV viewership growth slowing and audiences increasingly fragmenting across platforms, this model is becoming less sustainable.

Industry executives report a sharp decline of 25-50% in per-hour revenue realization for commissioned shows. While over-the-top (OTT) platforms offer premium, finite projects, traditional television relies on high volumes of long-running serials for cost amortization and revenue. With connected TV adoption rising and traditional viewership plateauing, streaming services are prioritizing unique content.

To adapt, production houses are increasingly pursuing IP ownership. This allows them to monetize content through syndication, licensing, and various digital formats, unlocking long-term value. Industry reports indicate a substantial rise in IP ownership by production firms: on television, it has grown from 15% to 43% in three years, and on OTT, from 21% to 43%. Total video content investment in India stands at approximately ₹50,000 crore.

**Impact** This trend will significantly reshape the business models of media companies. Producers focusing on IP ownership are better positioned for long-term growth and diversified revenue streams, potentially leading to higher valuations. Companies that adapt quickly to this IP-led strategy are likely to outperform those sticking to legacy models. The shift also implies increased investment in content creation and a greater emphasis on creative control for production houses. **Impact Rating**: 8/10

**Difficult Terms**: * **Commissioning Model**: A system where a client (like a broadcaster) pays a producer to create content based on specific requirements, and the client retains ownership of the content. * **Intellectual Property (IP)**: Creations of the mind, such as inventions, literary and artistic works, designs, and symbols, which can be legally protected and owned. In media, this refers to the ownership rights of shows, films, characters, etc. * **Monetised**: To convert something into money; making revenue from an asset or service. * **Syndication**: The licensing of content (like TV shows or movies) to multiple outlets or platforms for broadcast or distribution. * **Linear TV**: Traditional television broadcasting that follows a schedule, where viewers watch programs at the time they are aired. * **Over-the-top (OTT)**: Streaming services that deliver content directly to viewers over the internet, bypassing traditional cable or satellite TV providers (e.g., Netflix, Amazon Prime Video). * **FAST Channel**: Free Ad-supported Streaming Television. These are digital channels that offer content for free, supported by advertising. * **Amortise Costs**: To gradually write off the initial cost of an asset over its useful life; in media, this means recouping production expenses by distributing revenue over a long period.