Rajani sir, king khan, idiots, saas bahu: Business Models and strategies forGamification of Indian Movies and TV Content
Browne & Mohan Rajani Sir, King Khan, Idiots, Saas, Bahu and …..: Business models and gamification strategies of Indian Movies and TV ContentThis report is based on internship report by Akash Mohan, PGDM IIM Shillong, under the guidance ofUsha Murthy, Asst Consultant (Strategy & Marketing)Copyright Browne & Mohan, 2012
The Indian entertainment domain is an apt target for gamification because the content is largely based onIntroduction particular themes which a community of users canAmong all the sources of entertainment gaming has the identify itself with. Rajanikanth movies or Amitabhmaximum impact on its users across age and groups Bachchan flickers have mass appeal and some of thebecause it has the maximum user engagement and can action oriented ones like Dhoom are quite amenable forenable multiple level of engagement (from basic digress action gaming. Bollywood with its national andto starter to a professional embellishment for a serious international foot prints, regional movies with their ownpro). Games have moved from card and arcade to newer fan clubs and across the globe diaspora following offerdevices and the content has progressed from simple steps major markets.to complex algorithms that can imbibe high dynamics. Movie based games might sound like a new concept inThe trend of integrating game mechanics and game-based India but this concept is tried, tested and very welllearning into more and more everyday applications is accepted in western countries especially for Hollywoodgetting very well accepted across different industries. This movies. The need for new digital marketing tools andconcept has been adopted by a wide variety of industries exceptional success of Hollywood games like Harry Potter,ranging from education to entertainment. Gamification is Max Payne, Avatar etc. in India; has inspired the industrythe transformation of passive low engagement activity to to use online gaming as a must promotional tool fora dynamic high user engagement and involvement Bollywood. Big blockbusters like Dhoom 2, Ghajini, Drona,activity. By gamification, static low consumer touch Tees Maar Khan, Delhi Belly, Bodyguard, Ra.One, and Doncontent is extended and enabled to be dynamically 2 are all perfect examples of how Bollywood is marryingconsumed and experienced at various levels based on online gaming. Games, to a considerable extent, havecomplexity and depth of engagement. succeeded in increase the shelf life of movies andThe objective is to improve the overall quality of the enhance top of mind recall. They are advantageous tooutcome of the consumption and increase consumer producers as they create excitement and buzz aroundwelfare. For example, by gamification of educational movies, and help connect with the moviegoer. Ra.One is acontent, the learner from a passive rote approach good example of how the theme of a film was adoptedembraces learning by doing and learning by into a game and gave the player a realistic experience ofexperimentation which helps in better understanding and being a superhero. UTV Indiagames launched the cross-improved application of the concept. Video games are platform social game on Ra.One, accessible on all socialwidely used in a variety of disciplines such as behaviour networking platforms like Facebook and gamingmodification, autism therapy, leadership skill building, platforms like Nokia Ovi, Android, Apple, and DTH.and strategic analysis by organizations etc. The process of Indian film industry enjoys both domestic andintegrating game mechanics into applications to make international markets. While conventional internationalthem fun and engaging for users is referred as markets of US, UK, Canada and Middle East, continue toGamification. account for the bulk of overseas revenues; markets in
South Korea, Western Europe, Taiwan and Africa are The industry is still growing at a rapid rate and since atgearing up for Hindi films. 2011 observed a strong “Go- present only 60% of the country’s population has accessEast” phenomenon with Indian films doing well in Taiwan, to a TV set; the scope of growth is also significant. TheSouth Korea and China. growing television industry, introduction of new technologies like digitalization, LED’s , 3D television etc.The concept of gamification has also been successfully are some of the very positive signs for the developers asextended to other entertainment platforms the most well as the production houses to carry on the relationshipprominent one being TV. Lately the gaming industry between Television and gaming forward.witnessed a lot of games based on sitcoms which not onlyincreased the content recall for producers but also did What Indian content can be gamified?well as independent titles. Games based on AXN X-files, Gamification works by making technology more engaging;WWE Raw, CSI, gaming series based on Nickelodeon’s this is essentially done by moulding the content in such acontent etc. not only performed exceptionally well in way that it becomes more appealing for the usertheir local markets but were also well known among compared to the original content. While many believe anygamers in other nations. This concept of TV content content could be gamified, the success could be high, ifgamification can be very well extended to the Indian the content is:television industry as it also has key features like story,character and theme. These are the essentials for relating Dynamic: Players seem intrigued by content thatany content to gameplay. Moreover when analysed responds to their decisions rather than standing in placeaccording to the characteristics of gamification (dynamic, and expecting imaginations to fill in the gap. Hence, theextensibility, personalization and compatibility explained content should be so designed that players get to play anin the next section) television score some extra points active role in the course of the game.over movie-based games (a tested market) especially incase of being extensible and dynamic. Furthermore, the Extensible: Extensibility means that the action itself maytelevision content is usually series based and more into be simple, but there is scope to expand or embellish it toimplementation of franchise based model (compared to have many uses. Not all actions are equally extendable,movie industry) wherein sequels and continuation of which makes finding the right ones challenging. Howevershow are stressed upon more than a new independent finding great extensions is the best way to achieve antitles and this makes them way more extensible and elegant game design.dynamic as compared to any movie-based content where Amenable for Personalization: Participation is one of theit is the onus of the developer to add these features to hallmarks of new media, and games are no exception.the game and extend its as well as contents life. With the ability to personalize the game content, the user The Indian television industry is the most prominent involvement in game increases and hence retention ofsource of entertainment among the various available the users.digital entertainment platforms and constitutes 45.2% of Compatibility: The game should be so designed that itthe total entertainment industry revenue. connects the player to the original content and hence increase content recall.
Gaming in itself has 20 genres but since Indian gaming industry is not developed, the developers here offer limited variety to the audience. The prominent offerings which do well in India are Cricket: Although not a gaming genre(falls under sports),according to industry experts, anything related to cricket not only gets immediate attention from the audience but also sustains for a longer duration, hence resulting in good revenue. E.g. IPL fever launched by Indiagames not only got popular with the gamers but also bagged big in-game advertising contracts from brands like Parle G and Volkswagen. Racing: Tired of bad roads and traffic, our gamers do like to enjoy a smooth ride in virtual world through racing based games. Wherein bike racing has more acceptance as compared to car racing games. E.g. NFS a car-racing game, which is popular across all the gaming platforms. Action: Action movie and games both do well with the Indian audience. And lately action movie based games have also successfully developed a market for themselves. For instance, games like Ghajini, Ra.One, Agent Vinod etc.Classification of movie genres on their gamifiability Business Models for Gamification Development of any content-based game would involve a variety of stakeholders, each of them performing a specified role in the development cycle.
Following are the key stakeholders in a Bollywood/TV App stores are a developer-friendly source of contentbased game distribution because of the favourable revenue-sharing terms that they offer. Their economic value is aggregation Producer: Producers are the rightful owners of and platform to increase reach. The current shortcoming the IP rights, required for developing and is their limited reach, as they only cater to the very small publishing a legalized game. The IP rights play an Smartphone section. Finally advertising companies are essential role in borrowing characters, theme, intermediaries that allow in monetization. The gaming game audio and other elements from the original industry in India works primarily on the freemium model, content to the game. wherein the developers earn money from secondary Game Developer: Developers are the people who revenue-sources. bring the game into existence. The development model may vary from a service model to a The development process is not only affected by the licensing or a revenue sharing model. Models stakeholders but also by many factors which have an deciding the ownership and the sources of indirect impact on the revenue-sharing stream, revenues. ownership, approach of development etc.Intermediaries of gaming industry are players that help in Some of the prominent factors which play an essentialdistribution, availability (or market makers) and revenue role in entertainment based games are:generators (Spulber, 1998). On the distribution side,Telco’s because of their reach offer distributional • Licensing: The IP owners for movie or TV contentadvantages over other distribution channels like are the producers who usually charge a handsomehardware/software distributors, electronic stores and licensing fee for any commercial use of their content. Theothers whose presence is limited to Tier 1 cities at best. magnitude of this licensing fee has a significant impact onTelecom companies with their reach are undoubtedly the the economics of the game. Licensing also involvesmost efficient channel for distribution, marketing and aspects of platform and publishing which are required torevenue collection especially for the online and mobile be worked out prior launching a game.platforms, where there is no established retail channel for • Revenue Sharing: Developing a game arounddistribution. Although the developers often complain movie/TV content would involve a variety of stakeholdersabout their high revenue sharing terms (i.e. 65% of the each playing a crucial role in the development &total revenue), but telecos with their reach enjoy an distribution process and hence expecting some monetaryupper hand over them. benefit in return.App store are emerging as the market places wherein Key stakeholders of the whole development cycle arethey allow uploading of games onto their site, allow Developers, Producers, Distributors/Publisherssearch, discovery and download of the games by users for (telecos/App stores) and a proper contractual revenuea fee. They thus help in updating of content, aggregation sharing model is to be there in place for them. Trust anddemand and market making activities. monitoring would play a key role here. • 7Complementary Role: Releasing online games
Complementary Role: Releasing online games Publishing prior to a movie release started out as a way to The onus of publishing the content lies with the market the film and create hype around it. But, producers; they may do it on their site or involve a third this is not the case anymore. With a proper party to do it for them revenue sharing model in place, production houses look to earn money through tie-ups with a Benefits gaming company. So the purpose of game development has shifted from attracting eyeballs Less risk for developers as they have an assured to incremental revenues. development fees. Producers not only market their product but also receive the gaming revenue Based on the above factors following are the dominant business models which emerge: Economics of the Model Outsourcing Model Investment by 5-15 Lakhs (based on the Licensing Model producers quality of game) Minimum guarantee Model Investment by the 5-15 Lakhs ( if developing from Revenue Sharing Model developer scratch) 3-10 Lakhs (if modifying some Alliance Model existing content)Outsourcing Model 3-8 Lakhs (if development is solely for feature phones)A service-based model wherein a developer delivers a Expected Life of game 3-4 weeks (assumed that thecontent-based game to the IP owners of that content and game is only been used as ain return charges a development fees. The ownership of marketing tool)the game as well as the IP rights lie with the IP owners, Break-Even downloads 35,000-50,000 (assumed Avgproducers in our case. for game earning per download is Rs. 30)Initiation Examples Agent Vinod, GhajiniProducers/IP owners approach the developers to developa game, which is based on their content. Licensing Model The developers seeks the licensing rights for a particularDevelopment content in order to make a game around its characters,Developers develop the desired content in return of theme etc. The IP owners usually charge a premiumdevelopment fees. The content is later delivered to the amount as licensing fees, which can be as high as 10producers Lakhs INR for a single title.
This approach is not prevalent as off now because Publishingproducers are not easily ready to give off their content The content is the property of the gaming company andrights nor is it economically viable for the developers topay such a high licensing fees, as it almost doubles the they have the publishing rightstotal development cost. BenefitsEconomics of Licensing Model Game developers become the legal owners of the IP rights and are also the rightful owners of the game.Investment by Producers Nil Producers receive a licencing fee plus some free publicityInvestment by Developers 5-15 Lakhs (for game for their content development dependent on factors like quality, Economics of (Minimum-Guarantee) MG Model reusing of old content, platform etc.)+ 7-10 lakhs( as licensing fees) Investment by Producers NilTotal Average Cost of 18.5 Lakhs Investment by Developers 5-15 Lakhs (for gamedevelopment development dependent on factors like quality,Shelf-life of game 3-4 Months (since the reusing of old content, games would be character platform etc.)+5-7 Lakhs( based game) as MG)Break-even downloads 1,00,000 Total Average Cost of 16LakhsExample Hungama owns licenses for development many movies which can be Shelf-life of game 4-6 weeks( since the games converted into games would be character based game which have a longer shelf life) Break-even downloads Less than 1,00,000Initiation Example Recent games like Ra.One etc.Gaming companies approach the IP owners in order toacquire rights for their content. Minimum-Guarantee (MG) ModelDevelopment The gaming company pays the production house a minimum guarantee in order to use their content forDevelopers acquire the content rights and develop a gamification. The guarantee amount depended on thegame around the theme, characters and story of the lead time given, type of movie, production house, and thecontent cast.
The IP ownership is retained by the producers while the This model is the most prevalent model as it is a win-wingame ownership lies with the developers with certain venture for the producers as well as the developers,platform limitations. These limitations inhibit the because of the following reasons:developer from selling the game to a third party orpublish at places apart from those mentioned in the The model is more economically viable forcontract. developers as they get the partial gaming rights without paying a huge licensing fee.Initiation The producers readily agree to this model as the MG is almost of the same magnitude as theGaming developers approach the film/Sitcom producers licensing fees and they retain most of their rights,and promise them a fixed amount in exchange of limited plus they get free promotion through the game.rights for their contentDevelopment Revenue-Sharing ModelDevelopers have the permission but not the license for The revenue sharing model can take the following formsdeveloping a game around the theme, characters and based on the involved parties:other movie related content 1) Revenue-Sharing between Producers andPublishing Publishers/Marketers: o Developers develop the game for aThey publishing rights for the content would already be development fee and give the same tomentioned in the MG contract between the producer and the producers (outsourcing model).the developers. Restricting the developers from o The producer has an alliance with a thirdpublishing content apart from places mentioned in the party for publishing and promoting thecontract game content, these third parties are usually telecom companies or someBenefits marketing agency.Game developers get whole of the gaming revenue. o Revenue sharing is so that theProducers get the MG amount plus promotion of their distributors (telecos) charges around 65-content 70% of the game revenue and producers get 30-35% of the same.
2) MG-based Revenue sharing: As per mutual agreement and the titles performance forecast, the Alliance Model gaming company pays a part of the minimum guarantee This model involves minimal investment from both initially, and the rest is paid based on the performance of producers as well as the developers. In this case the the game. The model works in favor of the developers developers are not just responsible for gamification but reducing their development risk. also for promotion of content across different digital platforms. In return, the producers let go their licensing/ 3) Revenue-Sharing for Developers: Developers get MG fees giving developers access to the content, a part of development cost as development fees from the furthermore they also promote the developers with the producers plus they also get the publishing rights of the promotion of the content. gaming content for their website, the publishing rights In this model the developers monetize on the website not only get them the publishing fees but also generate traffic and through advertising while the main motto for more traffic for their websites. the IP owners is the extra digital promotion. Advantages for Developers At first the concept of alliance model doesn’t make much Customer pays an sense from a developer’s perspective because not only he Avg price of Rs. 49 for a mobile game makes the full investment for the game development but is also spending a huge amount for promoting somebody 65-70% as 30-35 % as Gaming else’s content. The following points help us understand distribution fees Revenue the viability of this model for the developers Telecom Companies Gaming Revenue The promotion cost is much smaller compared to (A) Rs. 31.85 (B) Rs.17.15 the licensing fees Usually the contract involves the promotion of 30% as 70% as publishing the gaming company along with the movie which developer’s fees fees would mean more traffic for the developer’s website, which can be easily encash through Telecom Companies Telecom Companies advertising. (A) Rs. 31.85 (A) Rs. 31.85 Developers while promoting the Movie/TV Figure 1: Traditional Revenue-Sharing for a mobile game content for the producers also promote their priced at Rs.49 gaming content, which again brings more traffic to them.(Assumed Game price as Rs. 49 and 65-35 sharing between distribution and gaming revenue) Lately such kind of media partnerships are picking up in India especially for online games and proving good for
both the developers as well as the producers. For Conclusioninstance, Ibibo shared such a partnership with movies likeTeen Patti and Kahaani. Movie and TV content producers are interested in maximizing returns on investment for their show.Advantages for Producers Investments in games may help them in two ways: a) Free and extra publicity through digital media increase positive words of mouth because of game that The game would not only drive more audience to could draw the footfalls to the multiplex and theatres and theatres but would also increase the shelf-life of b) additional revenues that may be generated by their movies. extending the existing content to a game. The concept of gamification can be used as an effective low-costEconomics of Alliance Model promotion tool. Block busters that have a natural extension of their movie content to gaming can benefit byInvestment by Producers Nil extending the games as a tool for promotion but alsoInvestment by Developers 5-15 Lakhs (for game development dependent on revenue-generation. If eye balls and marketing factors like quality, reusing promotions is the requirement, producers should adopt of old content, platform the Alliance business model. Furthermore, their etc.)+ 5 Lakhs( as investment in this case would be as low as nil which advertisement) makes it even more suitable for small/ medium budgetTotal Average Cost of 15Lakhs movies as they have limited advertising budget anddevelopment plethora of platforms to advertise. On the other hand,Shelf-life of game 4-6 weeks(since the Minimum-guarantee (MG) model suits best in case of developers have invested in the game they would games developed as independent titles. These games not ensure its extensibility) only promote the content but also increase the brandBreak-even downloads Less than 1,00,000 recall (in case of sequels), generate incremental revenuesExample Recent games like Teen and increase the shelf life of content. Although the Patti, Kahaani. licensing model may sound more lucrative in this scenario because of the huge fees which it will fetch, but retaining the content rights is always more advisable and beneficial for the IP owners (producers) plus a huge licensing amount may deter the developers to adopt the legal way and indulge in content-spoofing. With the recent changes in the copyright law, places the developers in a better negotiating position compared to their present one.
As according to the new guidelines the rightful owners of PriceWaterhouseCoopers, “Indian entertainment andthe content would be its creators, who would be receiving media outlook 2011”royalties from a variety of sources and hence might be a PriceWaterhouseCoopers , “Indian entertainment andlittle easy on the game developers. Moreover, the media outlook 2010”developers can now forgo rights like audio etc. (at present A report by Tata Strategic management group for Italianthey have to pay for all the rights) and concentrate more trade commission , “Animation and Gaming industry inon obtaining rights just for the content and characters. India Market Research 2010”, February 2010Developers should exploit movie characters/ themes to “Leading Retailers Use Gamification to Boost Customertheir advantage by employing replicas of Bollywood Engagement and Loyalty”, by Alicia Fiorlettacharacters in normal games. The use of replicas without “Media and Entertainment in India: Digital road ahead” ,paying the royalties to the IP owners is termed as a report by Deloitte for ASSOCHAM Indian, Septemberspoofing. Spoofing works really well in cases where 2011characters are the highlight of the game and if “Annual Media and entertainment report 2010-11”,implemented correctly (a relevant match is established Balaji Telefilms Limitedbetween the theme and the spoofed characters) it can The Gamification of Television: is there life beyondnot only ensure immediate but prolonged attention for badges? ,Nitya Narasimhan , Silviu Chiricescu, Venuthe game. For instance, Hungama games launched a Vasudevan, May 2011series of games titled ‘Bollyolympics’ wherein they used “Electronic Arts : The blockbuster strategy” , Alan Jaycharacters from hit movies like Sholay in sports games Lerner, playwright and lyricist, February 2004and series performed really well. Spoofing is a good David Spulber, 1998, Market Makers, Mcgraw Hillalternative for start-ups that have ideas but are weaker “ Bollywood movies and cultural identity constructionon investment; these start-ups can employ characters of among second generation Indian Americans” , Lakshmiold Hindi classics, but this should not be made as a N. Tirumala , August, 2009regular practice as that will have a negative impact on theproducer-developer relationship which in turn would Browne & Mohan insight are general in nature and does not represent any specific individuals or entities. While all effortsaffect the industry. are made to ensure the information and status of entities in the insights is accurate, there can be no guarantee for freshness ofBibliography information. Browne & Mohan insights are for information and knowledge update purpose only. Information contained in the report has been obtained from sources deemed reliable and no NASSCOM report with Ernst & Young, “The representation is made as to the accuracy thereof. Neither animation and gaming Industry in India” , August Browne & Mohan nor its affiliates, officers, directors, 2009 employees, owners, representatives nor any of its data or FICCI-KPMG, “Indian Media and Entertainment content providers shall be liable for any errors or for any actions Industry Report 2012” . taken in reliance thereon.