Smaller OTT platforms cash in on regional movie acquisitions as bigger players go slow; build on originals
Regional-language video streaming platforms have tried to take advantage of bigger foreign players going slow on movie acquisitions and production of original content over the past few months. As Disney+ Hotstar and JioCinema waited for the merger of the media units of their parent companies to go through, Netflix and Amazon Prime Video began to focus only on the acquisition of big star films and approved fewer big-ticket shows.
This enabled ShemarooMe, Chaupal, Ultra Jhakaas, hoichoi and other regional language services to look at buying smaller-scale regional films or collaborate with non-mainstream names for series launched at regular intervals.
“Foreign OTT platforms have slowed down on buying smaller, non-star films, especially regional ones,” said Sandeep Bansal, founder of Chaupal, an OTT that offers Punjabi, Haryanvi and Bhojpuri content. “While Hindi films aren’t affected much, Punjabi films are now mostly acquired by Punjabi-specific OTTs like Chaupal. Similarly, interest in Tamil, Telugu, and Malayalam films has decreased, with regional OTTs now being the main buyers. This is because regional audiences prefer watching content in their own languages on local platforms, which are doing very well.”
Bansal said movie acquisition is very important for Chaupal because it wants to feature all the big stars and major brand movies on its platform. Further, there has been a significant boost in subscriptions due to content and marketing strategy, while the slower pace of larger players may have also contributed somewhat, Bansal said.
“We are spending around 70% of our content budget on acquisitions including titles like Jatt and Juliet 3, Shinda Shinda No Papa, Je Jatt Vigarh Gya, Rose Rosy te Gulaab,” Bansal said, adding that the platform plans to release one original each quarter.
Measured approach
The content side has heated up significantly in the past three to four years – so volumes and costs have increased a lot, but revenue generation through advertising or subscriptions has not kept pace, said Saurabh Srivastava, chief operating officer, digital business, at Shemaroo Entertainment Ltd.
“Thus, we now see a more measured approach by OTT players. As a result, there is generally more content chasing buyers,” he explained.
Rajat Agrawal, CEO of Ultra Media & Entertainment Group, which owns Marathi language platform Ultra Jhakaas, agreed that pitches have increased as foreign platforms slowed down.
“Creators and production houses are actively seeking partnerships with regional OTTs like ours, recognising the demand for local content and the appetite for unique storytelling. This influx of pitches allows us to be selective and choose projects that align well with our brand and audience, while opening up opportunities to work with fresh voices,” Agrawal said.
Major foreign players have scaled back on acquiring smaller, non-star films, he admitted.
“There is major interest from filmmakers selling their films to regional OTTs that offer an appealing alternative. These OTTs have a keen understanding of local tastes and are often more willing to spotlight smaller films that resonate with specific audiences. These platforms can give these films a level of attention they might not receive on larger platforms, making regional OTTs a strong option for filmmakers who want their stories to reach a targeted and appreciative audience,” Agrawal said.
However, some platforms insisted they were already aggressive, irrespective of what the bigger players did.
“We are not dependent on what the foreign platforms are doing. We are a homegrown language OTT, and our strategy has been crystal clear from day one: to bring both high-quality original shows as well as big theatrical movies to audiences,” said Soumya Mukherjee, chief operating officer of Bengali streaming service hoichoi.
He added that the platform launches two or three original shows every month. Aso, about 40% of the overall budget goes to movie acquisitions.
“Our audience is global, including a huge addressable diaspora. Our subscription numbers are continuing to grow 40-50% year-on-year,” Mukherjee added.
