By Kumari Swati.
Mumbai : With more competition entering the market, content licensing costs have skyrocketed as additional OTT platforms have been bidding up prices. As of 2016, Netflix has streaming content obligations that total over $13 billion, and its licensing costs have grown by more than 50 percent from 2010 to 2015. Revenue, on the other hand, has only grown 26 percent compounded annually. While Netflix used to use the breadth and depth of its catalog to promote its offering in the market, now it has so many competitors that original content is the only way to differentiate the service. Netflix spent nearly $5 billion in content licensing/creation costs in 2016 alone, and the numbers simply don’t work in Netflix’s favor. The company could literally run out of cash before achieving the number of subscribers needed to support the business.
The arrival of OTT platforms have given the content developers a new avenue to experiment with their ideas and also to garner profits . Every individual have the mobile phone and thus making OTT platforms easily available on their smart phones.
Seeing the profit garnered by OTT platforms, the various television networks have started their OTT platforms like star TV came with Hotstar , Sony TV came with Sony liv , zee TV came with zee 5 . Thus writers , directors , producers and actors are getting benefitted with this new opportunity . Advertisers also got new market to advertise their product and make their brand awareness prominent among their customers.
Due to pandemic , entertainment industry hit the hardest and thus many films and daily soaps shooting are at halt. Due to lockdown people can not even go to theatres , thus many producers and directors are releasing their films on OTT platforms like Amazon prime and Netflix.
Movies like Gulabo sitabo is on Amazon and people can watch Gunjan saxena, a biopic starring Jhanvi Kapoor on Netflix.Thus these OTT platforms have became a new platforms for producers to release their films.
