OTT PLATFORM VS.
CONVENTIONAL
CINEMA
OBJECTIVE
Aim and Objectives
Aim: To understand and analyse the shift in content
consumption medium from Cinemas to Over the Top
(OTT) platforms and its future implications.
Objectives
I. To find out people’s preferences and the rationale
behind choosing Cinemas or OTT platforms.
II. To understand the psychological and physical
influences on people for preferring one media
over the other.
III. To differentiate between Cinemas and OTT on the
basis of several aspects that influence consumer
preferences.
IV. To predict the future trend in the movie and
entertainment sector in India.
INTRODUCTION
Watching movies and other digital content in India has
been a consistent activity and a part of the lifestyle
that provides relaxation and recreation from the frantic
professional work. People from all age groups love to
consume digital content via movies, web series, one-
shot films, etc. The key aspect has been the shift in the
medium on which these movies and series are
consumed.
In the early digital era viz. the 1990s to 2010s, the
cinemas and television were the major platforms on
which movie content was consumed. The coverage and
reach of these two platforms covered even the rural
parts of India. Thus, people developed a behaviour of
watching movies at the cinemas as well as television.
And since then with the internet developing quite fast,
the medium of cinemas and television has been
overtaken by OTT Platforms.
With the COVID-19 pandemic fuelling the OTT wave
even further, impacting the cinemas to shut down; has
helped the OTT players to set a strong foothold as the
prime medium for watching movies, web series and
much more digital content. This has impacted the
Cinemas considerably in terms of revenue and market
share that leads to direct competitive rivalry between
the two mediums viz. OTT and Cinemas despite
differences in business model.
OTT AND CONVENTINAL
CINEMA
"OTT" stands for "Over-The-Top," and it refers to the
delivery of content over the internet without the need
for traditional cable or satellite television services. OTT
platforms provide a wide range of digital media
content, including streaming services for movies, TV
shows, music, and other forms of entertainment.
OTT services are accessible directly over the internet,
allowing users to consume content on various devices,
such as smartphones, tablets, smart TVs, and
computers. Popular examples of OTT platforms include
Netflix, Hulu, Amazon Prime Video, Disney+, and many
others.
The term "over-the-top" suggests that the content is
delivered over the top of traditional distribution
methods, bypassing the need for cable or satellite
subscriptions. OTT has become increasingly popular,
transforming the way people access and consume
media content.
"Conventional cinema" typically refers to the traditional
model of filmmaking and movie distribution that has been in
place for many years. This model involves the production of
films by major studios, theatrical releases in cinemas (movie
theatres), and subsequent distribution through various
channels such as home video, television, and digital
platforms.
Key characteristics of conventional cinema include:
Theatrical Releases: Movies are initially released in theatres,
allowing audiences to watch them on the big screen. This is
often accompanied by promotional campaigns to attract
viewers to cinemas.
Studios and Filmmakers: Major film studios are usually
responsible for producing and financing high-budget films.
Filmmakers work within the studio system, and the success
of a film is often measured by its box office performance
during its theatrical run.
Distribution Tiers: After the theatrical release, movies go
through a series of distribution tiers, including home video
(DVDs, Blu-rays), television broadcasting, and eventually
digital platforms. This staged release system allows the film
to generate revenue across various markets and platforms.
Regulated Release Windows: There is typically a sequence of
release windows, with specific periods between a film's
theatrical release and its availability on other platforms. This
is designed to maximize revenue in each distribution phase.
INFLUENCE OF
CONVENTIONAL CINEMAS
Conventional cinemas, or the traditional model of
filmmaking and distribution, have had a profound
influence on the film industry and popular culture.
Here are some key aspects of their influence:
Cultural Impact: Conventional cinemas have played a
crucial role in shaping and reflecting cultural norms,
values, and trends. Major studio productions often
have the resources to create high-quality, visually
stunning films that can resonate with a wide audience,
influencing societal conversations and trends.
Economic Impact: The box office performance of films
in conventional cinemas is a significant economic factor
for the film industry. The success of a movie during its
theatrical run can have a domino effect, impacting its
performance in subsequent distribution channels.
Theatrical releases also contribute to the overall
profitability of a film.
Star System: Conventional cinema has been
instrumental in establishing and promoting the star
system, where certain actors and actresses become
iconic figures. The popularity of these stars often
contributes to the success of films, as audiences are
drawn to see movies featuring their favourite
performers.
Industry Standards: The conventional cinema model
has set industry standards for filmmaking, including
production quality, storytelling techniques, and
technological advancements. These standards have
influenced how films are made and perceived by both
filmmakers and audiences.
Global Reach: Theatrical releases in conventional
cinemas provide films with a global platform for
exposure. Hollywood, in particular, has been a major
exporter of films, contributing to the spread of
American culture worldwide. This global reach has
influenced the way people around the world perceive
and engage with different cultures.
Film Festivals and Awards: Conventional cinemas have
established prestigious film festivals and awards
ceremonies, such as the Cannes Film Festival, the
Oscars, and others. These events contribute to the
recognition and celebration of outstanding cinematic
achievements, shaping the industry's standards and
aspirations.
Technology Advancements: The pursuit of creating a
captivating cinematic experience has driven
technological advancements. The development of new
filming techniques, special effects, and sound
technologies has often been associated with the
demands of conventional cinema.
While the film industry is evolving with the rise of
streaming platforms and changes in audience
behaviour, conventional cinemas continue to be a
significant force, especially for big-budget productions
and films aiming for wide cultural impact. The
influence of conventional cinema is deeply embedded
in the history and structure of the film industry.
GRADUAL SHIFT TO OTT
PLATFORMS
WHY choose OTT? Now, imagine yourself as a budding
movie producer. Your movie has had a production cost of INR
20 crores and you are stuck in the dilemma of whether to
spend additional INR 5 crores on marketing and then hoping
for a good box office response (INR 30 crores of net sales) or
directly selling the movie at 24 crores to any of the OTT
(over-the-top) media platforms (for example, Netflix, Amazon
Prime, Disney+Hotstar and so on) and all of this considering
you are unsure of when theatres will be allowed to open up!
For some of them the answer is quite simple.
“Free up the money because now is the question of
survival!”
“Hedge the money right now, because obviously, no one
wants to play with the downside risk.”
The Coronavirus pandemic resulted in malls and cinema halls
being the first to shut, and last to reopen. And even when
they do reopen, the panic and fear amongst people would be
so high, that box office collections would certainly not be as
expected. Fewer seats, lesser screen time due to disinfection
of theatre post every run being the major contributing
factors. So that leaves production houses with only one
option, ergo home entertainment channel.
But this means, capital safety is more important than
profitability. Hence, you might have seen a few movies (take
for example, Gulabo Sitabo, Shakuntala Devi or even Jhanvi
Kapoor starrer Gunjan Saxena – The Kargil Girl for that
matter) signing contracts with the OTT media platforms
wherein they decided to skip the theatrical release and
directly release their movies on online platforms.
Data as per 2021
REASONS FOR THE
SHIFT
There are several reasons why audiences have
increasingly preferred OTT (Over-the-Top) platforms
over traditional forms of content consumption like
cable TV or conventional cinema. Here are some key
factors contributing to the growing popularity of OTT:
Convenience and On-Demand Access:
Advantage: One of the primary attractions of OTT
platforms is the ability to access content anytime,
anywhere. Users can watch their favorite shows,
movies, or documentaries at their convenience,
without being tied to a specific broadcasting schedule.
Diverse Content Catalogues:
Advantage: OTT platforms offer a vast and diverse
range of content, including original series, films,
documentaries, and exclusive shows. This variety
appeals to a broad audience with different
preferences.
Personalization and Recommendations:
Advantage: OTT platforms use algorithms to analyze
viewing habits and provide personalized
recommendations. This enhances the user experience
by suggesting content that aligns with individual
preferences.
Cost-Effective Subscriptions:
Advantage: Many OTT platforms operate on
subscription-based models, offering cost-effective
plans compared to traditional cable or satellite TV
packages. Users can choose plans based on their
preferences and budget.
Global Accessibility:
Advantage: OTT platforms provide global access to
content, eliminating geographical restrictions. Viewers
can explore and enjoy content from around the world,
giving them a more extensive range of choices.
Device Compatibility:
Advantage: OTT platforms are compatible with various
devices, including smartphones, tablets, smart TVs, and
computers. This flexibility allows users to switch
between devices seamlessly.
No Advertisements (or Limited Ads):
Advantage: Many OTT platforms offer ad-free viewing
experiences, or they have limited and non-intrusive
advertisements. This is in contrast to traditional TV,
where commercial breaks can interrupt the viewing
experience.
Original Content Production:
Advantage: OTT platforms invest heavily in original
content production, including high-quality series and
films. Exclusive content attracts subscribers, and some
OTT originals have gained critical acclaim, contributing
to the platforms' popularity.
Flexibility for Content Creators:
Advantage: OTT platforms provide a platform for
diverse content creators, from established studios to
independent filmmakers and content producers. This
diversity of voices and storytelling styles adds to the
richness of available content.
Shift in Consumer Behaviour:
Advantage: The way people consume content has
evolved, with a trend toward digital and on-the-go
viewing. OTT platforms align with this shift in consumer
behaviour, offering a more modern and flexible
viewing experience.
Quality of Streaming Technology:
Advantage: Advancements in streaming technology
have improved the quality of video and audio
streaming. High-definition and even 4K streaming have
become standard on many OTT platforms, contributing
to a better viewing experience.
Why not a DTH platform?
The reason for the producers to choose an OTT platform over
DTH players is that DTH in our country is fairly fragmented
and has higher friction when it comes to onboarding new
customers. Whereas OTT is literally a click away and amazon
prime boasts of a presence across 400 cities and towns in
India. But even then, the math doesn't seem to make sense.
Why settle at such a hard bargain, when you could've
probably waited a few more months and released over
theatres, before selling the rights to OTT. Unfortunately,
production houses have to pay royalty to the creative team,
the artists crew etc. And profits from one movie generally
flows into the purchase of content rights for their pipeline
movies.
Before 2019 the channels in DTH as well as cable TV did not
have subscription rates. Service providers used to bundle the
channels and transmit through specific packages. They
offered packages designed in such a way that the user was
forced to opt for a complete pack for just one channel, while
also paying for additional channels that they never actually
watched. Since new regulation in 2018, the broadcasters
published the tariffs for each channel as well as packages. Till
2018 November, both the cable operators and the DTH
service providers had a free run in that.
The choice between releasing a project on an OTT platform
or in conventional cinemas depends on various factors,
including the nature of the content, target audience, budget,
and distribution strategy. Here are some considerations for
both OTT and conventional cinema projects:
OTT Platform Projects:
Web Series:
Format: Develop a web series with multiple episodes or
seasons that can be released on an OTT platform. This format
allows for more extended storytelling and character
development.
Advantages: Flexibility in episode duration, on-demand
viewing, and the potential for binge-watching. It caters to
audiences who prefer to consume content at their own pace.
Documentaries:
Format: Create documentaries that can be released directly
on an OTT platform. Documentaries on various subjects have
found success on streaming services.
Advantages: Access to a global audience, potential for longer
shelf life, and the ability to explore niche or specialized
topics.
Original Films:
Format: Produce original films exclusively for an OTT
platform. These films can vary in genres and cater to a
diverse audience.
Advantages: Direct access to a large subscriber base,
potential for immediate global reach, and flexibility in
storytelling.
Limited Series:
Format: Develop limited series with a set number of
episodes, telling a complete story within that structure.
Advantages: Allows for in-depth storytelling with a clear
beginning, middle, and end. Suited for narratives that don't
require an ongoing series format.
Conventional Cinema Projects:
Feature Films:
Format: Produce traditional feature films for theatrical
release. This involves the standard film production process,
including pre-production, shooting, and post-production.
Advantages: Theatrical experience for audiences, potential
for box office success, and the prestige associated with
cinematic releases.
Blockbuster Franchises:
Format: Create high-budget, visually spectacular films with
the potential for sequels or franchise development.
Advantages: Theatres provide a grand cinematic experience,
and successful franchises can generate significant revenue
through box office, merchandising, and ancillary markets.
Film Festivals:
Format: Submit films to prestigious film festivals for exposure
and recognition.
Advantages: Film festivals can lead to critical acclaim, awards,
and industry attention. Successful festival runs can boost the
film's profile before wider release.
Cinematic Experiences:
Format: Design films specifically for the big screen, utilizing
advanced cinematography, sound design, and visual effects.
Advantages: Appeals to audiences seeking a cinematic
spectacle and immersive experience that may not be
replicable on smaller screens.
Hybrid Approaches:
Simultaneous Releases:
Format: Release films both in theatres and on OTT platforms
simultaneously to cater to a broader audience.
Advantages: Maximizes reach by appealing to those who
prefer the theatre experience and those who prefer the
convenience of streaming.
Theatrical Window Followed by OTT Release:
Format: Opt for a traditional theatrical release followed by
availability on OTT platforms after a certain period.
Advantages: Allows the film to capitalize on the theatrical
experience and later reach a broader audience through
streaming.
Ultimately, the choice between an OTT platform and
conventional cinema depends on the project's goals, target
audience, and the creators' vision for how they want their
content to be experienced. Many filmmakers and content
creators today consider hybrid strategies to leverage the
benefits of both distribution models.
The choice between an Over-The-Top (OTT) platform and
conventional cinema for a project depends on various
factors, and each option has its own advantages and
challenges. Here's a comparison between the two:
1. Distribution:
OTT Platform: Provides a global reach, allowing content to be
accessible to a wide audience without geographical
constraints. Users can stream content on-demand from the
comfort of their homes.
Conventional Cinema: Limited to specific physical locations,
which may restrict the reach of the audience. However, the
theatrical experience can be unique and offer a communal
viewing experience.
2. Cost:
OTT Platform: Generally, the production costs may be lower,
as there is no need for physical distribution or marketing to
the same extent as in conventional cinema. However,
competition can be fierce, requiring substantial investment in
high-quality content to stand out.
Conventional Cinema: Production and marketing costs can be
high, and revenue is often dependent on box office success.
Marketing and distribution expenses are incurred for each
location.
3. Revenue Model:
OTT Platform: Subscription-based models, pay-per-view, or a
combination of both. Revenue is generated over time as
users subscribe and continue to consume content.
Conventional Cinema: Revenue is generated through box
office sales, with a significant portion going to theaters.
Success is often determined by the opening weekend and the
film's ability to attract a large audience quickly.
4. Control:
OTT Platform: Content creators may have more control over
the production and distribution process. The platform may
provide opportunities for diverse content and niche
audiences.
Conventional Cinema: Distribution and screening decisions
are often in the hands of movie studios and theater chains,
limiting control for independent filmmakers.
5. Viewing Experience:
OTT Platform: Viewers can watch content at their own pace
and convenience, often on a variety of devices. However, the
communal experience of watching a film in a theater is
absent.
Conventional Cinema: Offers a unique cinematic experience
with a large screen, high-quality audio, and a communal
atmosphere. It can be particularly beneficial for certain
genres or visually stunning films.
6. Piracy:
OTT Platform: Digital content is susceptible to piracy, and
measures need to be taken to protect intellectual property.
Conventional Cinema: While not immune to piracy, it may be
comparatively harder to pirate the theatrical release of a
film.
7. Audience Engagement:
OTT Platform: Provides opportunities for interactive features,
user engagement, and data-driven content
recommendations.
Conventional Cinema: Limited in terms of direct engagement
with the audience during the screening.
