Please find the first part in this series at: https://aajkyakaroon.blogspot.com/2017/12/calculate-ideal-streaming-media.html
Lets continue our discussion and calculate the money earned by a movie. Using our previous discussion, a person may spend around 5000 minutes per month on a streaming service. The person would give Rs. 100 out of which Rs. 30 would go to the service provider and Rs. 70 goes to the content providers. Also, we had supposed that the total subscribers of a streaming service to be 1 crore people.
The Rs. 70 would be distributed among the 5000 minutes of screen time. 70 / 5000 = Rs. 0.014 per minute.
Lets consider a movie that is 2 hours long, i.e. 120 minutes. The movie would be worth 0.014 * 120 = Rs. 1.68. Now, suppose out of the 1 crore users, 5-10 lakh users watch this movie just one time in a month. This would fetch the content provider Rs. 8,40,000 to Rs. 16,80,000 for that month.
This amount can be considered as just additional income from the movie and would not warrant an exclusive (i.e. no theatrical release) streaming release.
The only way to make a substantial income for a content provider would be to have a plethora of ready made content that would flood the service. This can be achieved by making episodic series, like a short series of 8 - 10 episodes or longer series of 18-24 episodes per season.
The service provider also needs to up-sell or increase its subscribers by either making the service costlier or by having much more subscribers.
How much subscriber increase there can be in India? Well, to subscribe to a streaming service, I would consider that the person would have enough income to spend on such a service, i.e., the person should be a tax payer or at least belong to a family where someone pays taxes. At this present time there are around 50 crore internet users in India, but only around 7 crore tax filers. Out of the 7 crore tax filers, may be 3 crores would be filing a zero tax? So that leaves around 4 crore people.
In the present date, I would think that a mass appeal streaming service could cover 1.5 - 2 crore people.
Lets continue our discussion and calculate the money earned by a movie. Using our previous discussion, a person may spend around 5000 minutes per month on a streaming service. The person would give Rs. 100 out of which Rs. 30 would go to the service provider and Rs. 70 goes to the content providers. Also, we had supposed that the total subscribers of a streaming service to be 1 crore people.
The Rs. 70 would be distributed among the 5000 minutes of screen time. 70 / 5000 = Rs. 0.014 per minute.
Lets consider a movie that is 2 hours long, i.e. 120 minutes. The movie would be worth 0.014 * 120 = Rs. 1.68. Now, suppose out of the 1 crore users, 5-10 lakh users watch this movie just one time in a month. This would fetch the content provider Rs. 8,40,000 to Rs. 16,80,000 for that month.
This amount can be considered as just additional income from the movie and would not warrant an exclusive (i.e. no theatrical release) streaming release.
The only way to make a substantial income for a content provider would be to have a plethora of ready made content that would flood the service. This can be achieved by making episodic series, like a short series of 8 - 10 episodes or longer series of 18-24 episodes per season.
The service provider also needs to up-sell or increase its subscribers by either making the service costlier or by having much more subscribers.
How much subscriber increase there can be in India? Well, to subscribe to a streaming service, I would consider that the person would have enough income to spend on such a service, i.e., the person should be a tax payer or at least belong to a family where someone pays taxes. At this present time there are around 50 crore internet users in India, but only around 7 crore tax filers. Out of the 7 crore tax filers, may be 3 crores would be filing a zero tax? So that leaves around 4 crore people.
In the present date, I would think that a mass appeal streaming service could cover 1.5 - 2 crore people.
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