KOCHI: Film producer Antony Perumbavoor's move to release via digital platforms at least five upcoming Mohanlal films, including the big-budget Marakkar: Arabikadalinte Simham, has triggered a debate on the economics of over-the-top (OTT) subscriptions vis-a-vis theatre screening.
In the aftermath of the COVID pandemic and the subsequent lockdown, OTT platforms had become the only avenue for film releases, redefining the movie-watching experience for several viewers. Now, as cinemas reopen to a lukewarm response from the audience, an intense discussion regarding the future of theatres has taken over the Malayalam film industry as well as moviegoers.
The question is if streaming platforms would soon turn into the first option for the state’s production houses, ending the free-run of film theatres. When it comes to box office collections, it would take at least three weeks for a big-budget movie like Marakkar - produced by Aashirvad Cinemas - to make good returns. This might have been the prime reason behind Antony Perumbavoor’s decision to opt for an OTT release.
Another major film Dileep's Keshu Ee Veedinte Nadhan is also going the OTT way, along with Nivin Pauly's Kanakam, Kamini, Kalaham and Tovino Thomas's Minnal Murali. This indicates that OTT platforms are willing to spend on big movies with bankable stars. However, the business model is different when it comes to movies with low budgets and smaller actors, industry experts say.
"During the initial days of the pandemic, OTT platforms bought films after paying a huge premium to premier them. Movies like C U Soon and Joji benefited from this. But of late, the premium being paid has come down. I am acquainted with producers trying to sell their films to OTT platforms. Many are hesitating because the rates being offered are not attractive. Hence, they are forced to wait for a theatre release," said Vivek Ramadevan, managing director, Catalyst Entertainment Consultancy Pvt Ltd, a firm that deals with project designing and movie marketing.
But how do OTT platforms benefit from spending such huge amounts? "Even the best minds in the business are still debating this. With the first few films, they might attract new subscriptions. But with films like Drishyam 2, we can assume the subscriber count might have peaked and reached a saturation point," he said.
The pay-per-view option is yet to gain popularity in India, while even the profit-sharing model is opted by only a few small films. "Though the platforms might be interested in profit sharing, producers -especially in Mollywood - is unlikely to play along," he said.
For regional languages, OTT platforms open up a much wider audience base. A recent study by FICCI said regional language content will make up around 50 per cent of streaming video consumption by 2025.
Small wonder, OTT platforms dedicated to Malayalam content such as Neestream and Prime Reels have entered the sector recently after sensing lucrative business, while those with deep pockets such as Amazon Prime, Netflix and SonyLIV are willing to put substantial amounts of money on the table to get exclusive rights for big-budget movies.
Charles George, Kerala regional head of Neestream, which hit headlines after bagging the exclusive rights of critically acclaimed 'The Great Indian Kitchen', said the economics of cinema was about nothing but profit, be it from OTT or the theatre. He reckoned both models would coexist to provide a choice experience for the audience. "A hybrid method wherein viewers have multiple choices from one single platform would be beneficial for the growth and sustenance of the platform," he said.
George said OTT providers have different modes of earning revenue, but in the long run, subscriptions will add value to the platform. According to him, tackling privacy is the biggest problem faced the industry, a threat not restricted to OTT platforms. "To eradicate piracy, the government has to take appropriate measures including banning the apps that do this," the Neestream head said.
New film culture
In the aftermath of the COVID pandemic and the subsequent lockdown, OTT platforms had become the only avenue for film releases, redefining the movie-watching experience for several viewers.