Direct-to-TV and YouTube: Lifelines for films struggling to find buyers

While T-Series is streaming its Arjun Kapoor thriller The Lady Killer on YouTube, supernatural thriller Adbhut starring Nawazuddin Siddiqui premiered directly on TV channel Sony Max earlier this month.

“These strategies are more about recouping costs rather than maximising profit, especially when films are stuck without a clear release window or have been passed by OTT platforms," said Vikas Sharma, head of film projects at Locomotive Global Media, a production house.

Experts estimate there are currently about 200 films per language that are unsold. These films were all made 2021 onwards, during and after the pandemic, when demand from OTT platforms was very high and producers presumed that they would get buyers.

“The post-pandemic industry landscape has seen a dramatic transformation in how audiences consume content. Theatres are yet to return to pre-pandemic levels of consistent footfalls, and OTT platforms are becoming increasingly selective in the titles they acquire, focusing on content with a clear mass appeal or which have had a theatrical run with a star," Sharma said.

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Films that don’t fit these criteria or lack star power are left with fewer options, Sharma added. Direct-to-TV deals with channels that have an established audience base offer guaranteed reach, especially in tier-two and tier-three cities, and involve upfront deals.

Similarly, YouTube is a massive platform that allows producers to monetise their films through ads and pay-per-view rentals in some cases, while ensuring exposure to a global audience.

To be sure, direct-to-TV and YouTube releases are currently more of fallback options when theatrical or OTT deals aren’t available. This model may work for certain types of films, such as niche genres or smaller-budget productions, but it may not be viable for all projects.

Changing scenario

In India, the most number of films released in 2023 were in Telugu (317), followed by Tamil (271) and Kannada (241), according to Statista.

Films with high production costs or those built around theatrical spectacles will likely see these platforms as less attractive, given the lower financial returns. That said, for unsold films, these options do serve as lifelines, enabling producers to at least break even or cut their losses.

Further, these deals also reflect changing dynamics within the theatrical and OTT ecosystem. Akshada Bhalerao, head of sales and acquisition at media company Civic Studios, said the huge and constant demand of a couple of years ago has slowed as platforms revise their strategies and get selective about content on the basis of learnings.

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“Platforms are also branching off to sports, international content, and high-quality originals. Many filmmakers who would have previously relied on OTT platforms or theatrical as their primary source of release and revenue are now compelled to re-invent the distribution for their films as it's not a seller's market anymore," Bhalerao said, adding that this also means that some smaller and niche, but good films run the risk of not reaching audiences.

Some producers point out that makers have to resort to alternative routes because the films were planned as proposals without any research on what the target audience could be or changing viewer tastes. Further, many do not come with the wherewithal to spend additionally on marketing or publicity.

“Makers are exploring alternative outlets as they are averse to holding inventory for long. One is unsure about the returns in such situations, but these decisions are driven by commercial compulsions," producer Tanuj Garg of video production company Ellipsis Entertainment said.

Also Read: OTT platforms in the soup after theatrical films come on the radar