The COVID-19 pandemic significantly accelerated the growth of Over-the-Top (OTT) platforms. With theatrical releases uncertain, producers found a lucrative alternative in selling their movies directly to these streaming services. OTT platforms, eager to expand their libraries and capitalize on a captive audience, offered hefty sums for content. This period witnessed a surge in production budgets and actor remuneration as OTT money fueled the industry.
However, as audiences settled into their new viewing habits, the dynamics of OTT acquisitions began to shift. Streaming services, now boasting established user bases, are adopting a more cautious approach. Gone are the days of exorbitant prices for every film. Now, platforms meticulously evaluate a movie’s potential viewership before committing significant resources. This has resulted in a squeeze on budgets and actor fees, leaving some producers in a precarious position.
The recent hit film “Manjummel Boys” exemplifies this evolving landscape. Despite exceeding expectations at the box office, grossing over 100 crores on a budget of 14 crores, the film’s OTT deal remains elusive. The producer, reportedly seeking a staggering 20 crores for digital streaming rights, has encountered resistance from platforms unwilling to meet his asking price. This is particularly surprising considering the movie’s continued success in its third week, drawing enthusiastic crowds in Kerala.
The “Manjummel Boys” case highlights the current uncertainty surrounding OTT acquisitions. While theatrical success remains a significant factor, it no longer guarantees a windfall on streaming platforms. Producers must adapt to this new reality by carefully considering their budgets and potentially adjusting their expectations. OTT platforms, on the other hand, will continue to prioritize content that aligns with their audience demographics and viewership data.
The future of OTT acquisitions likely lies in a more balanced approach. Producers who demonstrate a clear understanding of their target audience and can create content with broad appeal will still find success. OTT platforms, meanwhile, will need to maintain a healthy balance between acquiring content and ensuring the long-term sustainability of their business models.
The “Manjummel Boys” saga serves as a cautionary tale for all stakeholders in the film industry, urging them to acknowledge the evolving landscape and adapt to the changing dynamics of OTT acquisitions.
