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What does "Satellite Rights" mean in the Indian film industry? And how is the amount paid to the film owners by a TV channel as "satellite right" decided?

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Can you please be more specific, in the body of the question, what you are asking? – Meat Trademark Feb 27 '14 at 19:51
@MeatTrademark this question looks pretty much clear to me. – Ankit Sharma Feb 28 '14 at 5:31
@AnkitSharma It was flagged and I wasn't sure what the question was, so I asked instead of voted to close. (Notice the close votes.) I was trying to save the question, even though I wasn't 100% on what was being asked. – Meat Trademark Feb 28 '14 at 6:27
@AnkitSharma Thank you, after your answer this makes much more sense to me now and is in fact quite simple to understand (and probably isn't much different from many other countries' ways of TV licensing anyway). Close-vote retracted. – Napoleon Wilson Feb 28 '14 at 11:43
@AnkitSharma Like I said, I didn't vote to close. And I now understand the question. – Meat Trademark Feb 28 '14 at 23:36
up vote 5 down vote accepted

There is a very good answer present on Yahoo Answers:

Satellite right is the legal permission given by the producer of a film to a Television channel to show (broadcast) the film in TV. It might be for a limited time period or for lifetime. There will be many clauses and conditions like the film can be shown in TV only after a particular time period etc. Nowadays, satellite rights plays an important part of a film funding. If the film has a big star associate with it, the TV channels pays huge amounts as satellite right before or while shooting. But if there are no big names in a movie, most of the time the movie has to release and proof itself to be taken by the channel. The satellite rights are mostly sold like an auction- Who pays more will get the right to air the film. Also it will increase the popularity of the channel. In the meantime, the channel plays the film many times and gets the money back through advertisements.

Note:- Unsourced and rumoured (or yet to be confirmed) stuff from the Yahoo answer is not included.

For the second part, these are the facts to decide about the amount paid for satellite right:

  1. Cast.
  2. Production Banner (Yashraj production can sell its films on higher rate to channels than any new production house).
  3. Past record of the people associated with the film.
  4. Success or expectation of the film.

There could be many others but it's like a bid on the expectation of film earnings from TV.

For example Kites' rights got sold on high rate due to the expectation associated with it but rumours suggest that the channel got disappointed due to the movie's theatrical response and thought they have overpaid.

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perfect, tat explains everythng! – chack008 Feb 28 '14 at 10:34

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