Are Online Streaming Platform the New Normal ?

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Good News for Movie Buffs 

While the work standstill because of the corona pandemic, The Indian film industry has for the past 3 months, witnessed close cinemas, abandoned film sets, and movie stars with empty diaries. But as far as cinema lovers are concerned, their wait is soon going to be over. Thanks to the online streaming or OTT (over the top) platforms that have stepped forward to bring cinema online. 

Now let us discuss some important points in this regard :

  • With the film industry shut down due to the imposed and extended lockdown, quite a few producers have now decided to go digital on direct to home platforms. Many movies including Ayushmann Khurana and Amitabh Bachan Starrer "Gulabo Sitabo" and Vidya's "Shakuntala Devi" will drop the traditional way of theatrical opening. 
  • Apart from the above mentioned Hindi releases, the direct to home platform menu features the "Sufiyum Sujatayum" (Malayalam) starring Aditi Rao Hydari, Tamil legal drama "Ponongal Vandhal" starring Jyotia, Danish Sait's film "French Biryani" and many more.
  • All the films will directly stream on Amazon Prime Videos bypassing traditional theatrical release. These movies will premier over the next 3 months and will be available across 200 territories and countries worldwide. These were originally meant for theatrical release. 
  • Director and Head, Content, Amazon Prime Video, India Mr. Vijay Subramaniam told Reuters in an interview that "There will be a reset in the way that producers and studios think about their portfolio." This marks an important shift for the Indian film industry, which heavily depends on box office revenue. Evidently, the move to release the film on an online streaming platform has drawn criticism from theatre gains and exhibitors. 

When can the OTT Platforms really become the new normal?

The Present Scenario

  • According to EY, last year the Indian film industry was worth $2.52 Billion (Rs. 19,110 cr), out of which, Rs 11520 cr was contributed by domestic theatrical and overseas theatrical contributed Rs 2700 cr. The 3rd largest contributor was television or satellite broadcast right (Rs 2200 cr) and digital stood fourth, at Rs. 1900 crore. 
  • EY has estimated that close to 100 million Indians went to cinemas last year, while 500 million watched films on television. It is clear that OTT or digital is still a very small part of the business, though it registered close to 50 % growth, from Rs 1350 cr in 2018.
  • Prime Videos acquired the digital rights for 12 of the highest-grossing Hindi films last year, followed by Netflix (9), ZEE5 (8), and Hotstar (3). In 2020, digital contribution to the industry (Rs 2380 cr) was expected yo surpass television (Rs 2320 cr) ven before the COVID-19 hit. Due to the pandemic, the streaming platforms might be the biggest winners in the economy. 
  • Programing Head, ZEE5, Aparna Acharekar quoted that "Film, for any OTT platform, is the biggest acquisition driver." The day we do a digital premiere, we see a set of new subscribers joining the platform. Today, people have the internet and they are sitting at home willing to consume content, and therefore, it makes sense for us to go the extra mile and offer them new films," she adds.



The Future Scenario 

  • As per EY, by this year, the OTT subscription market will estimate approx 10% of the total TV subscription market (without, however, considering data charges). India will have over 40 million connected Televisions by 2025, which will provide a significant opportunity for content creators to reach family consumers. 
  • Bollywood is a huge draw for India's online audience, who - driven by smartphones and cheap data - are spending significant time watching online content than ever before.750 million smartphones screens will also increase the demand for user-generated content (UGC), regional and short content, by 2025. Which will create a video ecosystem that can create significant employment.
  • Cinema business in India is heavily dependent on the urban families who go out to enjoy the experience, and not just the film. Due to the fear spread because of COVID-19. this audience might just get habitual to Online Streaming Platforms which are much safer and far cheaper. 

Author :
Jay Kumar Hotani



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