Are OTT Platforms' Creators Eyeing Towards Theatrical Films?

Amazon Prime Video, hoichoi, and aha Video, as well as web-based content creators like TVF (The Viral Fever), are expanding into theatrical films. In the case of the services, aside from the picture being streamed by them after its theatrical release, they will begin to have a stake as soon as it appears in theaters. According to media and entertainment industry analysts, this is yet another experiment aimed at improving monetization at a time when services are experimenting with everything from subscriptions and advertising to pay-per-view rental options to boost profitability.

Furthermore, movies that premiere in theaters will generate some hype and allow platforms to regulate what they would have paid producers for simple acquisition with no actual share in the IP (intellectual property) rights.

"One of the primary reasons for our venture into theatrical productions is that the hype surrounding the film's theatrical release improves its prospects. Furthermore, the market is changing dramatically, and there aren't many films being produced that we'd like to bring to the platform," explained Soumya Mukherjee, Chief Operating Officer of Bengali Streaming Provider Hoichoi.

IP Ownership for Increased Revenue

Furthermore, Mukherjee stated that the company is looking into IP ownership as a way to increase revenue, and large films always perform well on the platform. So it makes sense to support a film from the start so that it can later be streamed on the service. Hoichoi has three films coming out in theaters over the next few months.

According to Sandeep Bansal, Managing Director of Chaupal OTT, OTTs are investing in a film that will provide several benefits. The first would come from the film's box office earnings, while the second would come from its OTT release. Furthermore, innovative input from an OTT perspective is usually beneficial.

Furthermore, as per the entertainment industry analysts, the general public believes that streaming services already spend money marketing originals or films when they are released online. The perceived value of a film increases when it is released in theaters.

Also, after films like 12th Fail, makers can see that there is a market and appreciation for mid-sized content in theaters, and creators can see the value in reaching out to audiences directly," said Mehul Gupta, Co-founder and CEO of independent digital agency SoCheers. Rajat Agrawal, Director of Ultra Media & Entertainment Group's Marathi-language OTT portal Ultra Jhakaas, agreed that there is a place for mid-budget films in theaters. "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 stated.

To be sure, numerous industry professionals perceive the transition to theatrical productions as OTTs bridging the gap between forms, encouraging this crossover. "OTT platforms and artists are continuously interacting and learning about their customers, thus they want to cater to a variety of demands. In 2024, the theatrical market saw a substantial recovery, reinforcing the box office release model. Moreover, content costs have skyrocketed in recent years. Content creators and platforms aim to maximize income opportunities. Theatrical releases give another substantial revenue channel as well as a marketing platform, which will also promote OTT monetization, according to Saurabh Srivastava, Shemaroo Entertainment Ltd's Chief Operating Officer of Digital Business.