Filmmakers look to de-risk projects, sign OTT deals as box office bombs

New Delhi: Filmmakers are increasingly signing pacts to release films on streaming platforms before they hit the theatres, as they seek to de-risk their projects at a time audiences have soured on movie-going.

Producers have also faced criticism for mentioning the streaming partner in the marketing and publicity of the said film, which many say, takes away from the need to go to the cinemas as the movie would soon be available for home-viewing.

There are some exceptions, though. According to media reports, actor Aamir Khan has decided to sell his films to OTT platforms only after theatrical release, but industry experts say that few can afford such a move as deals with streaming companies often act as seed funding when the project goes on floors. Most producers would not be able to start shoots before the deals are in place.

“The southern filmmakers are quite keen to not put OTT partner labels and reinstate faith in the box office. The Hindi film industry is lagging behind because the cost of production is very high and producers want to make sure pre-release deals are in place,” film producer, and trade and exhibition expert Girish Johar said. 

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Johar added that publicizing streaming partners gives a sense to the audience that the film will be available at home soon enough, but an individual like Aamir Khan taking the risk to not sell films pre-theatrical release will not make a difference. This will require consistent efforts from many other producers to take the same position for the audiences to go to the cinemas and help revive the box office. Even in Hollywood, for instance, a maker like Christopher Nolan had stood his ground of not releasing films directly on OTT platforms during the pandemic, again standing out as an exception.

A senior executive at a leading studio said makers like Khan are definitely an exception because few actors and producers can resist being chased by streaming platforms who are ready to pay a premium for acquiring big-budget films. 

“A producer really needs the confidence and conviction to know that a small film of his can turn into a sleeper hit, enabling him to command an even higher price post-theatrical release. Everyone else is simply looking at de-risking projects. Not everyone is cash-rich and can remain that confident that things will turn around even when an OTT doesn’t see as much value in their film pre-release,” the executive said, requesting not to be named. 

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The executive added that such moves of selling the film post-theatrical release can work, if at all, only in exceptional circumstances where the film is made at extremely low costs, say in the range of ₹20-30 crore and earns 50-100% more at the box office.

Other challenge for OTT

Film producer Yusuf Shaikh said the other challenge is that OTT players are also chasing big content and popular names, given that they need fresh titles on a regular basis. 

“Some stars like Aamir can afford to do this (not sell the film before theatrical release) because they don’t charge an upfront fee...But most of the business is dependent on pre-sales. That said, the theatre business was initially based on the urgency of the first-day-first-show model, that doesn’t exist anymore. There is no such reason (to go watch the film as soon as it releases) so it doesn’t really matter how soon or with what kind of a window films premiere on OTT,” Shaikh pointed out.

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