What is OTT
The full form of OTT is Over The Top. This type of platform provides movies and TV shows through the internet and as it uses the internet for all the data transmission it doesn't require television or cables. People can watch movies and shows on their mobile phones themselves. Like other fields, OTT is just a new evolution of user experience.
Process of OTT
Companies buy movies and shows from the producers or telecasters and they will show the shows and movies on their platform. By using this OTT users can watch their movies and shows anywhere and anytime. It's very easy to describe OTT in a single line but making the user click on their platform is not an easy task. For that, every platform had its own algorithm to check user expectation based on the language, Geolocation, etc..,
In recent times you can able to see that many movies are releasing in OTT directly because of the corona situation.
Types of OTT
There are many ways OTT platforms are earning. Most of you were using these 3 platforms - Amazon Prime, Youtube, and Google Play.
Amazon Prime - Subscription Video on Demand(SVOD)
In this type, companies will get a one-time subscription plan for any particular video or monthly or yearly. Users will not see any ads in between the movies or shows and it's a one-time payment. In this type of platform, this is the only way of earning money. Even some platforms provide a trial version of 1 month to impress the people and buy their subscription. (I am one of these categories)
In applications like Hotstar, they had 2 plans one is VIP and another one as Premium. For VIP users will pay a subscription amount and they will see ads in between movies and shows. In a premium plan, they will not show ads in between the movies and shows. This platform will earn money from the advertisers
Everyone was saying the OTT platform destroys many people's living who are working in theatre. But the actual thing is OTT reduces the disadvantages that are in theatres. From the audience's perspective, they are spending less money and seeing more content in different languages. For the audience, they will save more money because of this OTT and can watch any movies or shows with the homemade snacks with the whole family.
Youtube - Advertising Video on Demand(AVOD)
This type is similar to Hotstar + Disney VIP. But the change here is they will not get any amount from users and provides free content with ads in between the videos. If users wish to see ad-free content they can get a premium plan or they can continue with the free content provided by these platforms.
Youtube is popular in this type of platform. It had almost every content in it and any common people can post their videos on youtube. Their main earnings will come from the advertisers. If you are using the free plan in MX player you can feel how irritating the placement of the ads in that platform. In my point of view, it's most annoying for me.
Google Play - Transactional Video on Demand(TVOD)
In this type, the User should pay to watch the movies or shows every time. It is divided into two sections Electronic Sell Through(EST) - Buy the loved content for lifetime access. Download To Rent(DTR) - Get access to the content for a certain time period. Companies will earn only with the subscription charger.
Hotstar + Disney or Hulu - Hybrid Video on Demand(HVOD)
In this type, it had a combination of above mentioned 3 types. Take Hotstar or MX player as an example, Hotstar + Disney VIP is an example of AVOD and their premium version will be the example of SVOD. Their VIP plan is less in price with limited content access and with ads. And their premium version is ad-free and it had access to all content.
Strategy to get the audience
- Trial version - Platforms like Prime Video offers a free trial version and will impress the audience to take their subscription package.
- Offering free content - Some platforms will provide all content free of cost with advertisements in between the videos. People who are not able to buy a subscription on one platform can access these free contents
- Producing own Movies and Shows - Nowadays these platforms started producing movies and shows. These will be available only on that particular platform. Assume any cricketer fan in your mind. If any of the platforms produce the biopic of your favorite cricketer, you will definitely but at least subscription for that video or monthly subscription.
- Buying new Movies - Due to corona, theatres were fully shut in many countries. So producers were approached by these platform coordinators and they started releasing new movies that are made for a theatre audience. But in India movies released on OTT platforms are not that many big hits except Dil Bechara and Soorarai Pottru. These movies bring a lot of new users to their platform.
- Variety of contents - These platforms had shows and movies of all age contents like kids shows and movies, the content of old people, and current trending movies and shows. People started believing that OTT had all types of contents in it.
Uses of OTT
- Variety of contents - These platforms had contents of all variety in all languages. Users can watch any type of movies on these platforms
- Cost efficiency - Their yearly subscription charge is lesser than the cost of a 4 member family spending on a single movie in the theatre.
- Chances for many new talents - These platforms will buy new movies based on the story and content and they will not consider the image of the director. Many new directors had their movies on the OTT platforms. If they tried to release their movies in theatres it will take a minimum of 2 years just to convince the intermediate persons.
- Advertisers - Many advertisers found that this platform is the best alternative for television so they will put more money into advertisements on these platforms for new movies.
- Censor free content - This is both an advantage and disadvantage in OTT. If it is an 18+ content, the User needs to see that scenes to feel the essence of those movies if that story really needs that violence or other scenes.
Disadvantages of OTT
- Censor free content - OTT doesn't have a separate team for censor certificate as in theatres. They will launch shows or movies directly without doing any cuts. So, Some countries are not comfortable showing those political or sexual content in OTT. Some days back, the Indian government brings all OTT platforms that are using in India under their government rules.
- Theatre Owners - Due to the corona pandemic, Theatres are fully shut down. Because of these theatre owners and distributors are suffering a lot. They are planning to put big movies on theatres and may try to bring the audience. But in the past month, many big stars movies are released in OTT and are gaining positive reviews from the audience. Many people started saying like OTT is better than theatres and they are expecting only a few movies in theatres. For many poor and middle-class people, OTT will gain a positive experience than in the theatre.
- Middlemen financial issues and Government - If a person is going for a movie in a theatre not only theatre owners will get profited. Just remember if you are going to a theatre there will be middlemen for transportation and if you are using your own transaction you will have petrol or diesel charges. That middle man mostly is not a rick guy. They will be poor or middle-class people. This amount will help their family to survive. The canteen contractor is also another middleman who sells snacks during intermission. Apart from these, there are many daily wages people working in theatre, All their lives are affecting. This is like a butterfly effect, because of this someone will get affected. Finally, in all these charges the Government will get taxes on theatre owners and electric and water charges. So not only the middlemen and also the government will get affected.
Is this the end of Theatres?
Definitely Not!!!
Still, a lot of people are loving to watch movies in theatres. But to feel that experience their spendings is a lot more. A Common man needs to pay money for transportation charges, Parking charges, Ticket charges, and Snack charges. All this is essential, but the question is, Are those charges really genuine and affordable?
In many countries, transportation charges are not stable and the middle man tries to get more money by using their urgency. Canteen contractors who are selling snacks for more amount and many theatres are restricting the audience from bringing their own snacks to theatres. Then parking charges, Everyone knows how much they are paying as a parking charge per movie. It will be nearly one persons' ticket charge in many countries.
Then ticket charges, Theatre owners are aiming to get more amount on the first week of big movies.
Many local theatres will get more money on the first few days of big stars movies. In India this a concern for an audience. People from other countries suggest the situation there in your country in the comments.
Ways for Theatres to bring back the audience to theatres
- Reducing Parking Charges - Parking is an additional facility provided by the owners to the audience. They should reduce the price of the parking charge or in malls, they can provide a free parking area for people who are coming for a movie or shopping.
- Allowing snacks inside the theatre - They should allow homemade snacks inside the theatres. This will help people who are not able to afford money for snacks selling in the theatre canteen.
Every audience feels to watch these movies in the theatre, but after some time they felt like it's ok to watch movies in OTT only because of its price. When Television comes to the market everyone says theatres will get extinct. But it survives in that situation. But this may seem like the same situation but not. It's more critical than that situation for theatre and theatre owners. People can watch any movies or shows without ads in between the video. Theatre should afraid of this OTT.
"OTT provides an alternative solution for drawbacks in theatre experience, Theatres faces the effects made by the causes made by them in the past. To overcome this situation at least they should keep the audience budget and their profit in balance"
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