Indian producers of films did the digital distribution of their films through OTT channels. The deal is upfront licensing ranging between Rs.100 -Rs. 300 crores, and the producer gets the cheque. The headache of piracy is on the OTT platforms (on account of piracy, there is loss of viewership). The streaming platforms are the main digital distributors.
Aamir Khan would like to take a new initiative — skip the OTT channels and use YouTube’s Transactional Video on Demand (TVOD) model. It will be used for the first time for a Hindi film release. YouTube has a massive reach — over 2.5 billion users globally and 460 million in India. It is the most accessible distribution channel available today, far outpacing the standalone OTT services.
YouTube TVOD model is performance driven, and Amir wants to use it for his film Sitaarey Zameen Par.view. YouTube is service-per-view OTT channels are subscription or membership-based channels. In the absence of the movie on OTT channel, the other option is to view it in cinema hall. It could lead to a longer theatrical run, since users will have to play to watch the movie, either on YouTube or in theatres, one way or the other.
Under YouTube TVOD, the content producer typically retains 70 per cent of the revenue, while YouTube takes a 30 per cent share. This reduced traditional distribution overheads (which account for 25 per cent of a film’s revenue). The cost advantage is moderate since the producer shares the revenue with YouTube.
The dreaded menace of piracy prevails in cyberspace. In case of YouTube, it falls on squarely on the producer.
The disadvantage is that if the movie does not click with the audience, the producers suffer. The OTT platforms offer upfront licensing deal whereas the YouTube model is performance driven. The earnings are a result of audience engagement and contents quality. It is a commercial risk a producer takes.
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