15 regional OTT platforms started in just a year; mint Rs 40 crore

The regional OTT has been booming ever since the theatres shut down due to the pandemic and the audience began watching movies at home. Data shows that the regional OTT is here to stay even as the Covid-19 pandemic doesn’t show any signs of decline. Around 15 OTT platforms have started in Malayalam within a year. Currently, they mint decent annual revenue of Rs 30 - 40 crore. However, industry experts expect this amount to double up in the future. In 2019, there were around 35% viewers for the regional OTT. But, as per the latest data released by the Federation of Indian Chambers of Commerce and Industry (FICCI), it is estimated that the viewers would go up to 50% by 2025.

Regional languages
OTT giants like Amazon Prime and Netflix too began placing their bets on regional cinema when people began showing interest for the regional OTT. Movies and web series in regional languages like Hindi, Bengali, Tamil, Malayalam, Marathi and Telugu have viewers from all over the world. Moreover, films and web series are dubbed into a handful of regional languages too.

Opportunities for newcomers
While Amazon Prime and Netflix bag star studded movies that are made on big budget, the regional OTT concentrates on small budget movies that boast of amazing content. Small movies like The Great Indian Kitchen and Operation Java were released on regional OTT platforms before they became sensational hits. Amazon Prime later acquired the streaming rights of The Great Indian Kitchen. Interestingly, both these movies were directed by debutant film makers. So, the regional OTT platforms open up amazing opportunities for newcomers who are eager to showcase their talent. Cinema workers now hope that small movies made by debutant directors do not get sidelined amid the slew of super star movies that easily get theatrical releases.

Content is king
Most regional OTT platforms give prominence to older movies too. It is the collection of content that determines the viewer or subscription rates in many OTT platforms. There are many OTT platforms that have an amazing collection of older movies. Those who work in this field say that even though tele films, web series, short films, comedy programs and music concerts are available on these platforms, viewers are mostly interested in watching movies. There are major OTT platforms in Malayalam that releases up to 10 movies a month. Many OTT platforms even produce web series and tele films on their own.

Recently launched OTT platform Matini owned by producer Badusha promises to open doors for newcomers to Malayalam cinema. Actors, screen writers and directors who are interested in working in mainstream cinema could register in this platform. Moreover, those who are looking for new talents could use this platform as a pool of talent. Besides, Matini arranges anything that is required for making a movie including booking locations and devices.

Challenges
OTT streaming is a field that stands out for its overwhelming investment. A huge amount of money should be spent to ensure excellent software and server, amazing collection of content and technical quality. So, you would be disappointed if you expect your venture to turn profitable in the beginning itself. Profits would reach your hands only after earning a name by providing spectacular viewing experience for the audience.

The reason why regional OTTs cannot offer subscriptions for affordable rate is because of the huge expenses and lack of audience. Amazon Prime and Netflix that have millions of subscribers around the world can easily offer subscriptions on affordable rates. However, the regional OTTs cannot do that.

Ensuring technical quality is a major challenge faced by regional OTT. They struggle to provide technical quality that matches other streaming giants, due to high expenses. Moreover, quality content that satisfies a wide range of audience too is significant. “When contents are available in overwhelming numbers, it is crucial to find out the best and make it available for the audience. Regional OTTs can survive only through newly released movies or unique content,” says Manu Abraham, MD of Neestream OTT platform.

Multiple streaming on various OTT platforms, non-exclusive release where a movie is released on more than one platform and streaming films by cooperating with the cable TV operators are some of the ways in which OTT platforms survive the stiff competition. Recent Malayalam movie Arkkariyam was simultaneously released on Amazon Prime and a regional streaming platform. Interestingly, streaming a movie in more than one platform has become the trend now. Besides, pay per view system where the viewer needs to pay only for the movie that he/she wishes to watch and not the entire subscription amount too has been followed by most platforms. The amount collected like this would be shared between the movie’s producer and the platform. Experts in this field say that this method would be effective in stopping piracy to a certain extent.

Piracy is another grave challenge faced by the regional OTT platforms. The pirated version of a movie is downloaded and spread through various mobile applications as soon as it gets released on a streaming platform. It is the regional OTT platforms that suffer the most due to unchecked piracy and the spread of pirated copies of latest movies. So, most platforms have introduced pay per view option where the viewer needs to pay for only the movies that they wish to watch.

Away from theatres
PM Bhava, the owner of a major distributing company and an OTT platform says that the growth of online streaming platforms wouldn’t affect the theater business. Big budget movies still prefer a grand theatrical release. Such movies have to be released in theaters in order to earn back at least the initial expenses. Big movies like Mohanlal starrer Marakkar: Arabikadalinte Simham has been waiting for almost one and a half years for a theatrical release. When cable TV was introduced, people said that it marked the end of theaters. However, the cinema halls continue to thrive. Even if OTT platforms become popular, the audience would enjoy watching a mass film only on the big screen with all its glories. Bhava, however, says that movies would now be classified into theater, OTT and satellite releases.

Regional trend
Not just in Kerala, regional OTT platforms have seen a significant growth in almost all states in India. Oho Gujarati, Hoichoi (Bengali), Aha (Telugu) and Planet Marathi are some of the popular regional OTT platforms in the country. The changes that have happened in the viewing culture are now witnessing a shift from the urban to the rural areas. This is a major factor that has caused regional OTT’s sudden rise in popularity. Moreover, each household now has ample amount of data and internet connectivity as the students resort to online classes.

Literary revival
The audience’s affinity towards programs in regional languages has stoked an interest in regional literature too. Many web series that became recent hits in Marathi, Gujarati and Bengali languages were based on the short stories and novels in those languages. Producers are now looking for literary classics and novels that suit the genre of a modern wed series. This has also increased the demand for writers and publishers. There are agents who discuss the terms and conditions with the writers, publishers and OTT platforms and help them enter contracts that are lucrative for all parties. The owners of the OTT platforms say that while it may take up to three months to prepare a new story and screen play, the filming could begin swiftly if the web series is based on an already published story or novel.

DMCRC
The government has introduced a new IT new to keep an eye on the content that are streamed on online platforms. The Guidelines for Intermediaries and Digital Media Ethics Code was issued on February 25 to regulate content on social media, news portals and OTT platforms. The Digital Media Content Regulatory Council (DMCRC) formed as part of this IT rule is responsible for addressing the grievances and complaints that arise about the content that is streamed on OTT platforms. The OTT platforms in the country are required to register through DMCRC. This new organization functions under the Indian Broadcasting and Digital Foundation (IBDF) which is an association of television channels and digital streaming companies in the country. The members of the DMCRC are appointed by IBDF.