Mumbai: Reality television serial Fear Factor-Khatron Ke Khiladi and Bollywood film English Vinglish could be swapping screens by the end of the year, thanks to a first-of-its-kind deal to share intellectual property between Dutch entertainment firm Endemol and motion pictures maker Eros International.
Endemol India, producer of reality shows such as Bigg Boss, Khatron Ke Khiladi and The Great India Laughter Challenge, and Eros International, producer of films such as English Vinglish, Vicky Donor, Housefull and older films such as Saajan, have decided to pool together and extend their intellectual properties into new formats.
The two companies will equally share investments and revenues, Deepak Dhar, managing director and CEO of Endemol India, said. "It is a 50:50 film and TV collaboration and no new company has been formed," he said.
Eros and Endemol have also signed a three-film co-production deal, where they will equally share total investments of more than Rs 100 crore, intellectual property rights (IPR) and revenues.
Endemol owns more than 7,000 hours of format IP, including reality shows, game shows and chat shows, besides other fiction shows, while Eros has a library of 2,000 Hindi films and 1,000 Tamil films.
The deal to share IPR for TV and films, probably the first of its kind in India, may prove a game-changer for the Rs 40,000-crore Indian TV industry.
So long, production houses in India have been making shows funded by broadcasters. The maximum a producer would pay for is a pilot and the broadcaster owned the IP of the show, with airing rights across its footprint. Producers are usually paid a commission of the production cost, which is approximately 15 per cent.
Dhar said by investing in its own shows, Endemol can sell rights per territory to the highest bidder and hold all digital as well as language rights and sell each separately. "So we can monetise every territory," he said.
This is the common practice in the West.
Industry experts say investing in creating IP could translate into profits doubling. Revenue options will get enhanced as films converted into serials could be relaunched every season.
"The acquisition of IP becomes an inorganic channel of growth as compared to the organic way of producing original content," says Smita Jha, leader (entertainment & media), at consulting firm PricewaterhouseCoopers.
Examples of international adaptations include film versions of popular TV series 24 and Sex and the City, and serial versions of Terminator and Star Trek.
IP has become a key asset for media owners as multiple formats of distribution emerge. As platforms integrate due to advancements of technology, content becomes re-purposable on different screens, increasing the value of IP in this digital age. The deal will mark Endemol's foray into films and boost Eros' television plans.
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