How Digital Media Destroyed Bollywood
Hello Friends, let’s see How Digital Media Destroyed Bollywood.
Exponential growth was seen in social media websites. Along with them, come the OTT platforms. 2009, Netflix started getting into partnerships with Smart TVs and gaming consoles. Netflix wasn’t a new company. The company Netflix is quite old. Netflix predates Google. Initially, it was a platform on which people could rent movies via the internet. In 1998, netflix.com was a website on this website, by making a monthly payment, you could get unlimited DVD rentals.
In 2000, Netflix started using the Recommendation system. Back then, Netflix’s competitor was Blockbuster. Netflix had the advantage of running the business online. They were late when Blockbuster realized how great this business model was. By this point in time. Netflix had understood that the business of selling or renting CDs and DVDs wasn’t going to last. They knew that in the future, people will prefer streaming the film online instead of renting DVDs. Netflix paid these production houses to buy their films so that they could stream the films on their platform. Video rental chain Blockbuster has filed for Chapter 11 Bankruptcy protection.”
Not changing fast enough with time, causing up to 1 Billion in losses for Blockbuster. Around 2011, Netflix realized that they needed to stop buying films from big production houses, instead of relying on them, they could save money by making their films. This is why, friends, in 2013, Netflix launched its original TV series. They proved to be so successful leading Netflix to realize that making original shows was a huge advantage. Coincidently, in 2016 another development changed this industry forever. I’m talking about Reliance Jio.
With Jio’s entrance, the data rates took a nosedive, gaining a large audience for these OTT Platforms. This is why there are more than 40 OTT platforms in India. But to get these subscriptions, they must first have a good content library. This is why many platforms want to create their original films and TV shows. The business model of OTT Platforms is quite unpredictable. This is why for the films by some actors these OTT Platforms are ready to pay the big bucks. But eventually, they realized that the large amount of money they were spending on buying the rights to the films, didn’t result in significant returns.
Om top of it, when the cinema halls reopened after the pandemic, and films got back to cinema halls, OTT Platforms saw how even films with big names turned out to be a flop. That’s why, today, most of the OTT Platforms wait for the films to be released in cinema halls first, and they would buy the rights to them later, after judging the film’s success in the cinema halls. By doing this, OTT Platforms will not have to spend on marketing. Normally, marketing a film costs rs. 30-40 million easily. This is why the Indian film industry is going through an upheaval. In the financial year 2019, the average price of a PVR movie ticket in India was Rs. 207.
The other expenses aren’t included here. And the OTT Platforms give you access to the content library for a month, at about half the cost. Initially, they spent a lot of money to build a good content library, to attract the audience into joining these platforms. And now they do not have to spend as much to buy new films. There indeed are some who prefer going to cinema halls to watch a film. Especially for a big-budget film that has a lot of VFX. But the smaller films that people would watch casually at the cinema halls, draw in a very little audience to the cinema halls. The next few years will be splendid for the OTT Platforms.