Shift in streaming strategy: Fewer sequels as OTTs turn cautious

New Delhi: The once bullish approach to green-lighting sequels and new seasons of web shows has slowed as streaming platforms become more cautious with content commissioning.

Producers and creators are now finding it tougher to pitch the sequel to a film or the new season of a web series and get approval as compared to a few years ago. Platforms however still lean towards established franchises.

“OTT platforms have been strongly observing the performance of the earlier season and what the chances of the second season getting the same or similar kind of traction by viewers are,” said Rajat Agrawal, chief operating officer and director of Ultra Media & Entertainment Group, that operates a Marathi OTT platform Ultra Jhakaas. “In some cases, while an earlier season has turned out well, the second season has not managed a major following.”

The realization that a sequel or second season may not match the quality of the first project has changed the dynamics of the entire business, Agrawal added. 

“One reason is that when an OTT platform gives the go-ahead to a particular season, they invest a huge amount of money in production and then a substantial amount in massive marketing and promoting it. After the release of the series, they track the reviews and the response from viewers,” Agrawal said.

Besides, with so many originals on various platforms, the viewer is spoilt for choice. “There have been instances where the viewer just saw the first episode and didn’t sample the rest of it at all if it didn’t connect with them.”

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Earlier the contract between producers and platforms was mostly based on the possibility of subsequent seasons, as it was largely assumed that instalments to an existing original would help the OTT with a unique edge over others. 

Check on spends

However, when producers approach an OTT platform with a new pitch, the factors that the service considers in green-lighting a second season are how the first season performed, the kind of traction it garnered and if there has been any significant growth in subscription numbers since the launch of the new series.

“With a tighter control on spends and more data-driven decision-making, the conversation has shifted. Platforms are far more discerning, looking for clear audience demand and strong performance metrics before green-lighting further seasons,” said Ujjwal Mahajan, co-founder, Chaupal, a platform specializing in Punjabi, Haryanvi and Bhojpuri content. 

“We prefer to test the waters with the first season, and only if it hits certain benchmarks, do we commit to subsequent seasons. It’s about balancing the ambition of creating a multi-season narrative with the reality that no further seasons are guaranteed,” Mahajan added.

While platforms still prefer sequels and subsequent seasons given that they have an existing audience base, a content studio head said on condition of anonymity that the overall level of commissioning has reduced across the industry. 

“The talent involved may also demand higher rates so the platform has to see if the costs make sense. Also earlier, producers could justify all kinds of budgets but there is far more focus on possible returns now,” the executive added.

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