Video platforms are bringing about a change in release strategies for films: Here's how

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Whenever there is a comparison between India and China, one topic that always finds a mention is the lack of theatre screens in India.

In terms of the number of screens, the Indian film exhibition segment is less than one-fifth in size as compared to developed markets such as China and the US. Thus, not every film made in India reaches the theatres.

However, this scenario is changing. In the age of digital disruption, the means of access to films for consumers have increased abundantly thanks to multiple over-the-top (OTT) media services.

There are over 40 OTT platforms in India, offering services at competitive rates, according to EY 2018 report.

Although cinema is largely distributed via theatres, the advent of video platforms like Netflix, Amazon Prime has changed the release strategy for films.

"The advent and entry of the OTT platforms has opened up a whole new vista for filmmakers to showcase their content – without compromise, without the pressures of a theatrical release," Siddharth Anand Kumar, VP Films & Television Saregama and Yoodlee Films said.

"Essentially, your content is then viewable worldwide. Further, you can target a film specifically to a niche audience, which leads to variety in the kind of stories you can tell. A filmmaker wants maximum reach for his/her work – the digital medium is giving just that,” Kumar said.

More films are increasing their footprint in the digital space. This has resulted in an enhanced dialogue between exhibitors and distributors around an exclusive theatrical release window.

Ongoing talks are hinting at exclusive theatrical release for six weeks. The exclusive theatrical release window is important to producers as they earn maximum revenue from domestic box office collection.

Additionally, sale of digital rights is one of the fastest growing revenue streams for movies. The revenue earned from digital rights is growing in conjunction with the rise of OTT services. In FY18, this segment garnered nearly Rs 620 crore, registering a growth of 28.6 percent over the previous year.

Some of the key digital rights acquisition in FY18 comprised of Padmaavat, which was acquired by Amazon Prime for Rs 20-25 crore, and the two Baahubali movies by Netflix for Rs 25.5 crore, according to a the ‘Media ecosystems: The Walls Fall Down’ report.

Amazon Prime has also signed a content deal with actor Salman Khan’s home production Salman Khan Ventures for his upcoming films, even before their television premiere.

The online video platforms are also displacing cable and satellite (C&S) as an option for premiers. Eros International has adopted a digital first strategy. This means, it releases content first on its Video on Demand (VoD) platform Eros Now and then moves to satellite premieres. Films like Tanu Weds Manu Returns, Badlapur, NH10, Samitabh and Happy Ending all premiered first on digital and then on C&S.

Small and niche films are major beneficiary of the new medium. Digital services are boosting independent cinema which have low marketing budgets and lacks of screens.

While independent filmmakers receive recognition at film festivals, very few of their films see the light of the day when it comes to theatrical releases. Big budget movies, backed by studios, take away majority of the screen share. However, this landscape is changing for such films, thanks to online video platforms.

The new revenue stream for small budget movies is also enabling the creative community to develop content exclusively for such platforms.

"It (digital medium) has more an impact for films with great content. The digital medium creates a kind of virality. It takes into popular conversation and culture," Neeraj Roy, MD and CEO, Hungama Digital said.

Gangs of Wasseypur was streamed on Netflix as an eight-episode series with subtitled available in English, Arabic, Chinese, French and Spanish, indicating at the potential of Indian films seeking an audience on OTT platforms that is beyond the diaspora.