Direct-to-OTT films lose sheen after Covid

This came as streaming platforms shifted strategy on content and focused on profitability

- ROSHNI SHEKHAR

Direct to over-the-top (OTT) film releases, which saw a major boost during the pandemic, have lost prominence with streaming platforms shifting strategy on content and focusing on profitability, and producers and filmmakers realise the lack of monetisation opportunities under this model.

Direct-to-OTT films saw a surge in 2021 as several theatrical releases had shifted to OTT due to pandemic-related theatre closures.

These films contributed 53 percent of the total number of streaming originals in India in 2021, while fiction series contributed 40 per cent, according to a report released by Ormax Media in January.

The report highlighted that since 2022, fiction series continues to be the dominant format, with around 70 per cent of the total number of streaming originals in India.

By 2024, the share of direct-to-OTT films came down to 18 per cent of the total number of streaming originals in the country. This was due to limited opportunities to monetise intellectual property through other ways later on in the direct-to-OTT model, media executives noted.

"The dynamics are starkly different (in revenue model, direct-to-OTT and theatrical-first, followed by platform syndication). When we go theatrical-first, we unlock multiple value chains like box office, music, satellite, and eventually digital, each step creating a layered monetisation pathway. More importantly, theatrical success enhances the perceived value of the film across other windows," said Pradeep Dwivedi, group chief executive officer (CEO), Eros Media World.