SVF inks five-year satellite rights deal with Star
MUMBAI: Bengali content production house SVF Entertainment has inked a long-term five-year contract with Star India for the sale of satellite rights of its film library. The deal was renewed in December 2017.
This is the first time SVF has inked a long-term deal with the broadcaster. Earlier, it used to enter into an annual contract with the broadcaster for the sale of satellite rights of its recently released/upcoming movies.
SVF officials refused to confirm or deny the deal. Star India didn’t comment on the story.
The deal is likely to strengthen the liquidity position of the content house as a substantial amount of the satellite rights fee will be received shortly.
It not only provides revenue visibility to the company but also helps it to de-risk the film production business to a large extent.
The contract covers a significant portion of the cost of movie production.
In addition to the deal with Star, SVF also has contracts with two leading entities for selling the internet rights of its movies. This again will support its liquidity and profitability.
Incorporated in 1995, SVF is promoted by Shrikant Mohta and Mahendra Soni. It was initially involved in the business of production and distribution of movies.
Subsequently, it diversified into the production of TV serials, the sale of satellite rights and internet rights of movies, music rights as well as digital cinema.
The company has also entered the exhibition business by setting up multiplexes in tier-II and III cities in West Bengal.
The erstwhile Shree Venkatesh Films had changed its name to SVF Entertainment Private in March 2017.
In 9M FY2018 (April 2017 – December 2017), on a provisional basis, the company reported a net profit of Rs. 6.44 crore on an operating income (OI) of Rs. 114.29 crore. In FY2017, SVF achieved a net profit of Rs. 7.70 crore on an OI of Rs. 199.98 crore.
In January, SVF had revealed plans to pump in Rs 100 crore on producing 25 high-budget films over the next three years under the SVF Stories banner.
It has also entered the over the top (OTT) segment with the launch of Bengali video on demand (VoD) platform Hoichoi. The platform has a library of over 500 Bengali movies and 1,000+ songs. It also offers 50 hours of web series with new exclusive shows added every month.
It has three subscription-based plans quarterly, half yearly and annual. The quarterly plan is priced Rs 149 while the half-yearly and annual plans are priced Rs 249 and Rs 399 respectively.