The movie genre, also known as the 'frequency genre' for advertisers because of long ad breaks, will have to reinvent its business model if the cost of movie acquisition keeps going northwards even as the ad inventory is cut.

Revenues have been growing steadily but the business is title driven so it is not clear how channels can increase their ad rates once their ad time is capped. Channels in this space are going to be especially hit since they currently air 15-25 minutes of ads per hour on average. If the channels can no longer pay as much for movie acquisition as they did before what will film-makers do in such a situation?

Digitisation will enable many more people to pay and watch the films they love. Whether that will take some pressure off broadcasters in the bidding war remains to be seen.