OTT platforms- An Evolution for the Film Industry

Writers: Hia Sadho & Nisha Shetty

Buttery popcorn, giant sodas, and thundering crowds-- going to the movies is a widely mourned loss in the post-pandemic world. Now that they have been replaced entirely by media platforms like Netflix, Amazon Prime Video, and Hotstar, the changes should be examined.

An over-the-top (OTT) media service is a media service offered directly to viewers via the Internet. The term is mostly synonymous with subscription-based video-on-demand (SVoD) services that provide access to film and television content (including existing series, as well as original content). It can be accessed through PCs, applications on mobile phones, video game consoles, and Smart TVs. Some of the examples are Netflix, Hotstar, Hulu, Amazon Prime Video, Voot, etc. Nowadays, live broadcasts of sporting events like the IPL, and news programs are also available on these streaming services.

Although a lot of content on these platforms consists of older films and shows that they've bought the rights to, in recent years a lot of the companies have been creating and producing their original content. These cover a wide range of genres and are making a huge impact- especially in the world of film. According to Forbes Magazine, Netflix spent 13 billion dollars on content in 2018, 85% of which was spent on original content. This works perfectly because audiences know that they can't go anywhere else to consume this content. This comes with the added benefit of other films as well.

In 2018, the Netflix Original film, Roma was nominated for an Oscar. Many cinema purists were outraged. They felt that a film that was never broadcast in theatres shouldn't be considered by the Academy. This created a debate about eligibility criteria for films, and there were staunch critics for both arguments. Some felt that Netflix films didn't count as "real" cinema. While others felt that this was a great move, making Oscar-nominated films more accessible to all, and making the selection of nominees more diverse, with independent creators and creators of various nationalities and backgrounds.

With the Covid-19 pandemic, streaming services saw huge profits. Paid membership for Netflix increased 23 per cent in the final quarter of 2020 when compared with the same period a year earlier. Many people only use streaming services to watch films, and that number is constantly growing. It is much more cost-efficient to pay an upfront fee and watch an unlimited amount of movies from the comfort of your home. Whereas the other option is paying the same amount to pay for tickets to watch just one movie. This doesn't include the overpriced snacks and the feeling of unsafety when you step into an air-conditioned room full of people. Not only is it more accessible, right now it is even safer.

The rise of OTT platforms also has a large impact on advertising. “The mass personalization of content experiences at relatively low cost and the resulting explosive growth in choice has altered the balance, perhaps permanently, between consumer spending and advertising,” PwC stated.

“Companies find they can deliver immense choice at a price point that makes sense for both supplier and customer while building powerful direct relationships—all without relying excessively on fickle or intrusive ads … Companies are increasingly in the business of delivering experiences and content directly to consumers, not delivering audiences and eyeballs to advertisers.”

Streaming services are attractive to many filmmakers because it is considered freer. The movies that are shown in cinemas have to follow certain rules and are more prone to censorship. But some argue that Netflix-focused films kill the "cinema experience".

The pandemic has altered the course of the world, and the film industry is no expectation. As had video sharing services before it (such as DVD rentals), so shall movie theatres decline. Whether the change is here to stay lies in your hands.

---