Arts, a media and entertainment company owned by well known film director and producer Subhash Ghai, is getting ready to distribute and monetise its content through the Internet and mobile media. It has acquired a controlling stake of 51 per cent in Coruscant Tec, a mobile content and applications company, which will help it deliver its film content on mobiles across India.
In an official communiqué, Subhash Ghai, chairperson, Mukta Arts, explains the rationale behind the acquisition. He says, "The acquisition of Coruscant is a logical step in launching Mukta's web and mobile digital initiatives and entering the VAS space. Mukta is a content creation company and Coruscant offers content delivery solutions in the new media space."
The value chain in the distribution of film content on mobiles will involve Mukta Arts, which will supply its content to Coruscant, which will then convert the film content and make it accessible on mobiles.
Since Coruscant has already tied up with several mobile operators such as Vodafone, Reliance and Tata Teleservices, it will be easy for Mukta Arts to offer and distribute its content to a wide audience across India.
Explaining the business model, Adiseshann says, "The content will not be monetised through advertising as mobile operators do not allow insertion of ads in movie clips. The company will earn revenue whenever a mobile subscriber watches or downloads a movie clip, ringtone or wallpaper. It will share the revenue with the mobile operator."
Adiseshann adds, "We have plans to offer the Mukta Arts film content in the international market as well, but initially, we will focus on the Indian market only."