During the Covid era, OTT platforms began buying films at record prices to attract viewers, and producers were thrilled as movies achieved the fastest recoveries ever. However, the industry soon started feeling the after effects , skyrocketing remunerations, inflated budgets, and the decline of satellite and theatrical markets. At the same time, OTT platforms also witnessed huge losses. They were paying massive amounts for films that failed at the box office and did not deliver the high viewership they expected on streaming.
Because of this, OTT platforms have tightened their buying strategies. They are adding multiple conditions while acquiring films and shifting focus toward creating their own original content. In a major move, OTT giant Netflix has reportedly decided to change its approach. Everyone knows Netflix recently opened a large office in Hyderabad, and the main objective behind this expansion is said to be a shift from buying films at record prices to producing more web series and original content locally.
This decision will definitely impact producers, especially those handling big films, as Netflix has been one of the biggest revenue sources for OTT deals. Other platforms are also following similar strategies. With this shift, the industry is once again moving back to a point where theatrical markets become the primary source of recovery
In the current scenario, only strong content can help producers. Depending solely on calculations, hype, or packaging is no longer enough, delivering genuinely good cinema is the only sustainable solution.