OTT platforms, creators turn to theatrical films

New Delhi: Video streaming platforms such as Amazon Prime Video, hoichoi and aha Video as well as producers who primarily create content for the web, such as TVF (The Viral Fever) are venturing into theatrical films. In the case of the services, other than the film being streamed by them after theatrical release, they will begin to have a stake from the time the film arrives in cinemas. Media and entertainment industry experts say this is another experiment aimed at better monetization at a time when services are trying everything from subscriptions and advertising to pay-per-view rental offers to improve profitability. Also, movies first premiering in theatres will come with some sort of buzz and allow platforms to control what they would have paid the producers for simple acquisition and no actual share in the IP (intellectual property) rights.

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“The fact that the buzz around theatrical release helps the prospects of the film is one of the core reasons (for our foray into theatrical productions). Further, the market is going through enormous change and there aren’t too many films being made overall that we’d like to really bring to the platform,” Soumya Mukherjee, chief operating officer of Bengali streaming service hoichoi, said. 

IP ownership for better revenue

Moreover, the company is exploring the business of IP ownership for better revenue, Mukherjee said, and big films anyway always do well on the platform. So, it makes sense to back a film right from the beginning that can eventually stream on the service. hoichoi has about three films releasing in theatres over the next few months.

OTTs are putting money into a film with multiple benefits, said Sandeep Bansal, managing director, Chaupal OTT. The first would come from cinemas in terms of what revenue the film earns, the second would come from OTT release. Besides, creative input from an OTT perspective always helps.

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The common perception is that streaming platforms are already spending on marketing originals or films when they are released online, entertainment industry experts point out. “The perceived value of a film goes up when it is released in theatres. Also, after movies like 12th Fail, makers can see there is a market and appreciation for mid-sized content in theatres too and creators can see benefit in reaching out to audiences directly,” Mehul Gupta, co-founder and CEO of independent digital agency SoCheers said. Rajat Agrawal, director, Ultra Media & Entertainment Group operates Marathi language OTT platform Ultra Jhakaas agreed there is space for mid-budget films in theatres. “Going to a multiplex with family on a weekend is more of a wholesome cohesive experience, and any film, whether big or small becomes part of that experience,” Agrawal said.

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To be sure, several industry experts see the transition to theatrical productions as OTTs having merged boundaries between formats, thus facilitating this crossover. “OTT platforms and creators constantly interact and learn about their consumers, thus wanting to cater to different needs. The theatrical market in 2024 saw a significant resurgence, re-validating the box office release model. Moreover, content costs have overheated over the last few years. Content creators and platforms want to tap all avenues of monetization. Theatrical releases provide another significant monetization channel as well as a marketing platform – which will drive OTT monetization too,” Saurabh Srivastava, chief operating officer of digital business at Shemaroo Entertainment Ltd said.