Stars or not, streaming thinks twice before buying new films
Salaar and Kalki 2898 AD have found it tough to find buyers in the OTT industry, which had splurged on acquiring such movies post theatrical release. Streaming services want the acquisition prices of films featuring top stars to be linked to their box office performance, trade experts said, just as in the case of smaller movies. Overall, OTT rates for big-budget movies have fallen by 20-30%, and platforms are no longer keen to buy titles for perpetuity either, they said.
“Creating a film or show requires a considerable amount of time. The planning process takes place within a specific environment, and financial and marketing strategies are carefully structured accordingly. However, if the environment undergoes sudden shifts, the process of readjustment should be given its due course of time," Amita Madhvani, co-partner and producer, Ram Madhvani Films said.
While some bets on acquiring big-scale films post-theatrical release have paid off for OTT platforms, driving subscriber growth and differentiation, success isn't always guaranteed due to varying audience reception and competitive factors, Madhvani added. Film trade experts say at the end of the day, all streaming platforms are accountable to global parents and have to demonstrate judgment in acquiring content at steep rates. “There are targets to meet and if bets misfire, somebody will be answerable.
Even if leeway is granted for six months, questions will be asked at the end of the year. Especially when big star films fail at the box office, there is no reason to justify such high pricing for OTT," Yusuf Shaikh, business head, feature films, distribution, acquisition and IPR management at Percept Picture Co. said.
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