Should Small Indian Movie Makers Launch Their Own OTT Platform Amid Rising Costs?

The evolution of Over-The-Top (OTT) streaming platforms has revolutionized the way we consume content. However, the rapid growth of these platforms has come with its own set of challenges. One of the pressing issues is the cost associated with creating and maintaining an OTT platform. This article explores whether small movie makers in India should consider launching their own OTT platform, examining the economic and practical challenges involved.

The Business of OTT Streaming

Creating an OTT platform is not a straightforward endeavor. It demands a significant investment and an intricate understanding of the market dynamics. The costs associated with launching an OTT platform are substantial and encompass various aspects:

Website and Application Development: Building a user-friendly and robust platform requires considerable technical expertise. The design, functionality, and security features all contribute to the overall cost. Social Media Presence: To attract and retain subscribers, a strong social media strategy is essential. This includes content marketing, user engagement, and community building. Server Infrastructure: High-quality streaming requires reliable servers and data centers to handle massive amounts of data and traffic. Adequate Back-End Capacity: A stable and efficient back-end is crucial to prevent frequent crashes and ensure smooth content distribution. Subscription Management: Effective subscription management systems need to be in place to handle billing, renewals, and customer support. Content Creation and Procurement: Creating high-quality content involves substantial costs, and acquiring content from creators also incurs additional expenses.

The Challenges Facing Indian OTT Platforms

The Indian OTT market faces unique challenges:

Limited Subscriber Base: Attracting a large number of subscribers is a significant hurdle for new platforms. This is especially true for small movie makers who may lack the marketing and distribution resources of larger players. Illlegal Streaming: With the help of Telegram (TG) and other peer-to-peer networks, illegal streaming has become a significant threat to legitimate OTT platforms. Protecting content from unauthorized access is a constant battle. Content Sufficiency: A steady stream of new and relevant content is essential to keep subscribers engaged. The cost of producing and acquiring content is immense and must be managed carefully. High Competition: The Indian OTT market is crowded, with several well-established players attracting the majority of subscribers. New entrants face the challenge of carving out their niche.

Joint Fund and Collective Effort

One potential solution to these challenges is for small movie makers to jointly pool their resources and create a shared OTT platform. This collective approach could help in:

Reducing Costs: By sharing the expenses, individual makers can afford to invest in the platform without bearing the full financial burden. Enhanced Marketing: A unified marketing strategy can help build a stronger brand and attract more subscribers. Quality Content: Group efforts can lead to higher-quality content by pooling resources and expertise. Better Negotiation Power: A collective body of creators may have more bargaining power when negotiating rights and rates with content producers.

The Economics of Launching an OTT Platform

While the joint fund approach could mitigate some of the risks, the economics of launching an OTT platform remain challenging. The primary concern is ensuring that the platform generates enough revenue to sustain itself and pay content creators fairly.

Economies of Scale: To achieve profitability, the platform must scale quickly and attract a significant number of subscribers. Pricing Strategy: A competitive pricing strategy is crucial to attract and retain subscribers. However, setting prices too low may impact the platform's revenue. Content Patronage: Generating original content or acquiring rights to popular content can be expensive, but it is vital for subscriber engagement. Subscription Plans: Offering flexible subscription options can cater to different customer segments, increasing the likelihood of gaining a broader subscriber base.

Conclusion

While launching an OTT platform might seem like an attractive proposition for small Indian movie makers, it is a complex and challenging venture. Jointly pooling resources could be a viable solution, but the success lies in the ability to effectively manage costs, generate sufficient revenue, and create compelling content that resonates with subscribers.

For movie makers who are ready to take on this challenge, prioritizing self-discipline and clear business strategies can help navigate the often turbulent waters of the OTT market.