Rising content costs leading to more risk-reward sharing models: BBC Studios Asia

A substantial rise in content production costs, driven up by competition for key talent particularly in the OTT space, is creating newer monetisation models such as co-productions and partnerships with emphasis on sharing both the risk and reward, according to BBC Studios Asia SVP and GM, Phil Hardman.  

“There’s a substantial increase in cost of content and that has to do with talent and competition for skills. It’s not just on-screen talent, but also off-screen talent and the writer’s room,” he told Business Today.   

BBC Studios, the global content company subsidiary of the BBC Group, has produced 12 scripted Indian adaptations of its British shows such as The Broken News, The Office, Out of Love, Rudra: The Edge of Darkness for OTT platforms such as Disney+ Hotstar and ZEE5 over the past two-three years. The studio has also produced originals such as Kaisi Yeh Yaariaan for the Indian market.  

Hardman pointed out that there is a marked increase in the volume of premium dramas being churned out because of the demand from the OTT space. Besides, he added, the pandemic made it more expensive to produce shows, especially those involving travel and a lot of people on sets. “Production costs are going up for all parts of the industry.”  

The increasing content costs coming in the face of a limited customer wallet is adding pressure on content producers and studios, he added. “We are seeing more partnership type models where there is a different ratio of risk and reward. That’s something we are in careful consideration on what that means for us,” said Hardman, who oversees the distribution business in Asia.   

The production business in India is looked after by BBC Studios India General Manager Sameer Gogate as part of the International Production & Formats Business overseen by Matt Forde. The studio has co- shows such as Criminal Justice, The Office, Rudra and Bloody Brothers in India with Applause Entertainment. It has also collaborated on a commissioned model with partners such as Disney+ Hotstar and ZEE5 where the stories are developed internally by BBC Studios India Production and thereafter commissioned by the platforms. 

“We are investing in content and that’s what we are bringing to the table in many of these partnerships – not just hundred years of expertise around creating content or distributing it, but also bringing in very real investment into high-quality content that we think works for the audiences in India…The way the market is heading in terms of the risk-reward share, we are working with our partners to find a way that works for both of us,” he said.   

BBC Studios also distributes its content, including Top Gear, Doctor Who, The Watch, Brexit and Sherlock to Indian audiences through platforms such as Discovery+, MX Player, Lionsgate Play and Amazon Prime Video. It also has a number of key partnerships, including a JV with Sony Entertainment Television for Sony BBC Earth.   
 

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