Production houses move beyond films, tap into alternative revenue streams

Production houses are now looking for revenue streams beyond the manufacturing content for the silver screen to generate a steady flow of income.

- ROSHNI SHEKHAR

They are venturing into allied businesses, which range from starting talent management agencies to music labels to tap into every possible monetisable opportunity to appeal to investors.

However, films don’t take a backseat.

Sunshine Pictures, which has produced film franchises like Commando and Force and Akshay Kumar-starrer Action Replayy and Holiday, has launched its own music label, Sunshine Music. Another production house, Balaji Telefilms has started its own talent management firm, Hoonur and launched an astrology-related app, Balaji Astro Guide.

Dharma Productions, meanwhile, has taken full control over its talent management firm’s joint venture with Cornerstone Sport and Entertainment to relaunch it as Dharma Collab Artists Agency.

This comes at a time when production houses expected satellite rights and digital rights to remain subdued in 2025, according to a report by Ernst & Young (EY) and Ficci.

"Film business is not a quarterly business. Film business is a yearly business, but music is a quarterly business and it (music label segment) becomes a very predictable revenue stream,” said Vipul Shah, chairman and managing director of Sunshine Pictures.

“We have a robust investment plan for the music and we will be evaluating it every six months (for the first two years). In a few years’ time, it’s quite possible that at least 30 to 35 per cent of the revenue of the company may come from the music vertical,” Shah said.

Shah added that the revenue contribution might rise more than 35 per cent in the long term, as once a song gets popular, its value rises significantly.