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Can Nagababu's idea of OTT release in AP work?
By: Tupaki Desk | 2 March 2022 3:01 AM GMT
Hollywood studios came up with their own OTT platforms during pandemic to compensate for lack of theatrical releases like HBO Max - affiliated to Warner Bros, Disney Plus - Walt Disney Studios, Paramount+ - Paramount, Sony LIV - Sony. Other filmmakers can approach YouTube, Comcast, Apple TV, Hulu, Netflix, Amazon Prime for direct video on demand releases.
Each and every studio have allotted funds to boost their OTT platforms all over the world looking at the popularity of Netflix and Amazon content. In India too, Zee5, SunNXT, AHA, ALTBalaji, MX and several other OTT platforms have come up to compete with the giants.
Hollywood studios encourage independent cinema and "disposal" films to be released via Video on Demand services. Either on cable or on OTT platforms like Netflix, this kind of practice has been going ever since 1980's. Before that VHS tapes of unreleased films used to be directly released.
In India, direct to VHS or direct Satellite release or digital release of any film has been equated to B-grade or adult content oriented films. We used to find many VHS tapes at Video shops of such movies and police used to arrest, seize those shops for encouraging porn or uncensored content.
Indian government allowed for free speech on Internet when YouTube and other digital video service providers did not seem to be that big players. Slowly, the boldness and raw content with gem of creative professionals coming together increased the viewership and this hurt few people in power and hence, today we have censorship on OTT platforms too.
But Video on Demand services did not catch on in India. Kamal Haasan when faced opposition to release his film, Vishwaroopam, he tried to crack a deal with direct to Home service providers and release his film in Video on Demand business style.
Means you will pay money to the DTH service provider and then watch the film, once or twice or number of times, you are allowed to. Traditional distributors and exhibitors objected to this idea and later he got issues resolved with Tamil Nadu Government for a smooth release.
In India, from 1990's, distributors and exhibitors started ruling the film business as they have money, sources and political backing, resources at their disposal. They could use any means to control the producer as they could coerce even big producers to accept finance from financers to make a film.
This resulted in a huge drop in content quality and except for big heroes films, pulling crowd to theatres has become a task for films. Exhibitors started losing their precious possessions, that is, theatres to realtors and some financers resorted to criminal conduct, some invested in other businesses, few got hit by great economical depression in 2008 and therefore, traditional system need big changes. For theatres to survive against growing popularity of TV, upcoming digital platforms, rampant piracy at that time, they needed to lease out to someone who can bear losses and make money during big releases. Big producers saw this as an opportunity and invested in theatres. Used all their might to get ticket rate hikes during release weekend, first two weeks and on release day, as well.
That is what YS Jagan's government tried to correct and just turned the clock to three decades old rather than taking in consideration the change in times. More on that, in a while.
With big producers investing their money into buying out struggling theatres and taking well maintained theatres under fixed leases, direct video on demand releases have almost vanished from the equation.
YRF, sister concern of Dharma productions, Dil Raju distribution companies, Suresh Pictures, Red Giant, Sun Pictures, Asian Pictures are few influential producers who are into distribution with major number of theatres under their lease agreements in various areas of India. PVR grew into a big chain buliding Multiplexes wherever possible in India.
Coming to Nagababu's suggestion in reference to AP Government's supposed indifference towards film Industry, mainly Pawan Kalyan and his films, to release the films in AP on OTT services while releasing in theatres elsewhere. We need to understand that the suggestion is not entirely "dumb".
It has a merit but he did not understand that there are no affective ways to release on OTT platforms, with restrictions to accessibility for only one area. One can argue that Twitter, Facebook, YouTube and all major digital video service providers do limit access of their content from area to area, that is, country to country. But any OTT platform will not agree to restrict access to entire world and allow only in one area after paying gigantic amounts to compensate for that area and make the movie available for streaming in other areas after accepted waiting time.
Piracy websites will find a way to hack the content and release all-over like they do, now. If ticket rates are increased in other areas to compensate for AP state Theatrical business, then the people will simply rely on piracy websites to download the movies and watch. They will just wait for OTT platforms to unlock the content for them as well.
The truth is the idea works only when Indian filmmakers try the strategy of Hollywood studios to release their films on OTT platforms of their own or any of the available with video on demand pricing, simultaneously with Theatrical release.
Big studios in Hollywood found subscribers for their OTT platforms due to this strategy but had to bare losses in theatrical window. So, Sony did not release Spiderman No Way Home with simultaneous release strategy. The movie collected close to 1.8 Billion USD whereas Wonder Woman struggled to pass the 400 USD mark globally, with huge hype.
Godzilla vs Kong kind of big action film also did not have great Theatrical business as much as the film under usual circumstances might have collected. Many biggies that opposed this strategy like Tenet and that followed the strategy also suffered.
Hence, studios have decided to stop simultaneous releases for at least 2022 and continue with theatrical release only for big budget films.
Bheemlanayak starring Pawan Kalyan and Rana Daggubati did great business in theatres even with low rates in AP over the first weekend. It might be struggling from Monday, but that is due to content and not due to pandemic or "government harrasment".
Akhanda, Bangarraju managed to recover costs even with such rates over their run at theatres. Pushpa and Shyam Singha Roy had big affect due to prices as the average talk would have allowed the movies to remain marginally profitable in AP areas also, had the rates have been at the least normal.
Bheemlanayak could have earned 8-10 crores more over the weekend and holiday on Tuesday under normal conditions but release timing with exams looming around and many more biggies lined up, the content not being up to expected level is playing foe too.
Nagababu might have a point in his idea, as that strategy can help struggling films to go for direct OTT release with VOD pricing that is acceptable, but big movies cannot survive that strategy.
Each and every studio have allotted funds to boost their OTT platforms all over the world looking at the popularity of Netflix and Amazon content. In India too, Zee5, SunNXT, AHA, ALTBalaji, MX and several other OTT platforms have come up to compete with the giants.
Hollywood studios encourage independent cinema and "disposal" films to be released via Video on Demand services. Either on cable or on OTT platforms like Netflix, this kind of practice has been going ever since 1980's. Before that VHS tapes of unreleased films used to be directly released.
In India, direct to VHS or direct Satellite release or digital release of any film has been equated to B-grade or adult content oriented films. We used to find many VHS tapes at Video shops of such movies and police used to arrest, seize those shops for encouraging porn or uncensored content.
Indian government allowed for free speech on Internet when YouTube and other digital video service providers did not seem to be that big players. Slowly, the boldness and raw content with gem of creative professionals coming together increased the viewership and this hurt few people in power and hence, today we have censorship on OTT platforms too.
But Video on Demand services did not catch on in India. Kamal Haasan when faced opposition to release his film, Vishwaroopam, he tried to crack a deal with direct to Home service providers and release his film in Video on Demand business style.
Means you will pay money to the DTH service provider and then watch the film, once or twice or number of times, you are allowed to. Traditional distributors and exhibitors objected to this idea and later he got issues resolved with Tamil Nadu Government for a smooth release.
In India, from 1990's, distributors and exhibitors started ruling the film business as they have money, sources and political backing, resources at their disposal. They could use any means to control the producer as they could coerce even big producers to accept finance from financers to make a film.
This resulted in a huge drop in content quality and except for big heroes films, pulling crowd to theatres has become a task for films. Exhibitors started losing their precious possessions, that is, theatres to realtors and some financers resorted to criminal conduct, some invested in other businesses, few got hit by great economical depression in 2008 and therefore, traditional system need big changes. For theatres to survive against growing popularity of TV, upcoming digital platforms, rampant piracy at that time, they needed to lease out to someone who can bear losses and make money during big releases. Big producers saw this as an opportunity and invested in theatres. Used all their might to get ticket rate hikes during release weekend, first two weeks and on release day, as well.
That is what YS Jagan's government tried to correct and just turned the clock to three decades old rather than taking in consideration the change in times. More on that, in a while.
With big producers investing their money into buying out struggling theatres and taking well maintained theatres under fixed leases, direct video on demand releases have almost vanished from the equation.
YRF, sister concern of Dharma productions, Dil Raju distribution companies, Suresh Pictures, Red Giant, Sun Pictures, Asian Pictures are few influential producers who are into distribution with major number of theatres under their lease agreements in various areas of India. PVR grew into a big chain buliding Multiplexes wherever possible in India.
Coming to Nagababu's suggestion in reference to AP Government's supposed indifference towards film Industry, mainly Pawan Kalyan and his films, to release the films in AP on OTT services while releasing in theatres elsewhere. We need to understand that the suggestion is not entirely "dumb".
It has a merit but he did not understand that there are no affective ways to release on OTT platforms, with restrictions to accessibility for only one area. One can argue that Twitter, Facebook, YouTube and all major digital video service providers do limit access of their content from area to area, that is, country to country. But any OTT platform will not agree to restrict access to entire world and allow only in one area after paying gigantic amounts to compensate for that area and make the movie available for streaming in other areas after accepted waiting time.
Piracy websites will find a way to hack the content and release all-over like they do, now. If ticket rates are increased in other areas to compensate for AP state Theatrical business, then the people will simply rely on piracy websites to download the movies and watch. They will just wait for OTT platforms to unlock the content for them as well.
The truth is the idea works only when Indian filmmakers try the strategy of Hollywood studios to release their films on OTT platforms of their own or any of the available with video on demand pricing, simultaneously with Theatrical release.
Big studios in Hollywood found subscribers for their OTT platforms due to this strategy but had to bare losses in theatrical window. So, Sony did not release Spiderman No Way Home with simultaneous release strategy. The movie collected close to 1.8 Billion USD whereas Wonder Woman struggled to pass the 400 USD mark globally, with huge hype.
Godzilla vs Kong kind of big action film also did not have great Theatrical business as much as the film under usual circumstances might have collected. Many biggies that opposed this strategy like Tenet and that followed the strategy also suffered.
Hence, studios have decided to stop simultaneous releases for at least 2022 and continue with theatrical release only for big budget films.
Bheemlanayak starring Pawan Kalyan and Rana Daggubati did great business in theatres even with low rates in AP over the first weekend. It might be struggling from Monday, but that is due to content and not due to pandemic or "government harrasment".
Akhanda, Bangarraju managed to recover costs even with such rates over their run at theatres. Pushpa and Shyam Singha Roy had big affect due to prices as the average talk would have allowed the movies to remain marginally profitable in AP areas also, had the rates have been at the least normal.
Bheemlanayak could have earned 8-10 crores more over the weekend and holiday on Tuesday under normal conditions but release timing with exams looming around and many more biggies lined up, the content not being up to expected level is playing foe too.
Nagababu might have a point in his idea, as that strategy can help struggling films to go for direct OTT release with VOD pricing that is acceptable, but big movies cannot survive that strategy.
