The streaming honeymoon ends in India: Filmmakers, OTT platforms rethink strategies
As streaming platforms tighten their grip, the Indian film industry is forced to reassess its strategies and adapt to a new revenue model.
A representative image
It seems the honeymoon period between producers and streaming platforms is on the verge of ending. The relationship, once hailed as a match made in heaven, promised to revolutionize the economics of the cinema business. Many believed that the advent of streaming platforms would pave the way for content-driven, experimental movies to find bigger and better audiences. Producers were expected to find a safety net, allowing them to take bigger risks, while filmmakers could push the limits of imagination and storytelling. However, these predictions for a utopian movieland did not come to pass.
Independent filmmakers felt ignored, as did the producers of popular movies. What began as a mutual collaboration, promising equal benefits for both producers and OTT platforms seems to have failed. A visible power imbalance has emerged, with streaming platforms wielding more influence over a film's journey than those who funded and created it.
"The OTTs, which made you go laughing all the way to the bank for a few years and slowly killed movie-going habits, are now dictating terms. We used to have some guaranteed theatrical market! It's gone, and now OTTs refuse to give fancy rates because your theatrical is low!! The irony of it all!" rued a social media post from AndhraBoxOffice.Com.
In the wake of the pandemic, cinema theatres were forced to shut operations as they were deemed a major public health risk. This allowed streaming platforms to solidify their positions in the Indian market and become a force to reckon with. Initially, streamers paid generously to encourage creators to skip the theatrical window and release films directly on streaming. But in the last couple of years, the streaming industry has rationalized their purchasing terms, leaving producers in a lurch.
"There is no revenue from the satellite business like it was three years ago. The OTT business is going through a revision again, and you won't get the premium prices that you received earlier. First, they paid a premium price, and we brought the theatrical window to 28 days. Now, they are reducing the prices by 30 percent. Subsequently, we are trying to increase the theatrical window from 28 days to 56 days. I think it will be done by next January," said producer KE Gnanavel Raja of Studio Green in an interview with Galatta Tamil.
Gnanavel noted that producers have realized a robust theatrical ecosystem is a non-negotiable element in reducing too much dependence on streaming platforms to secure investments.
Stakeholders across the Indian film industry are now discussing ways to reduce mounting production costs and evaluating projects that suit the evolving tastes of audiences. These accelerating changes will likely usher in a new revenue model, consequently impacting the kinds of movies produced in the country.
Updated: August 03, 2024 12:03 PM IST
Please Subscribe us OnGoogle News
