Is OTT Industry a Disruption to Movie Theatre Industry?

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The Internet is rapidly transforming the entertainment industry in India. The size and effect of the future use of digital content is massive for the country's mobile phone user base, led by the launch of 3 G and 4 G networks and millions of subscribers. Audiences are using numerous different technologies to view films, documentaries, and web series on their smartphone devices. Some examples include Netflix, Amazon Prime, Hotstar and Zee5, which provide movies and other video content through internet. It has become a challenge to the Movie theater industry. Now that theatres are shut down and film releases are suspended in the midst of the national shutdown, cinema owners worry that the universal experience of viewing movies will eventually change digital platforms, leading to a dip in viewers visiting once the screens open up again. The aim of this study is to learn how digital streaming platforms are affecting Indian movie theatres, and how young people use these new digital platforms to access video content. This research analyses the viewing habits of young people through digital platforms and movie theatres for video content. This report also analyses the changing dynamics in the film industry in India. Almost 50% respondents agree that over the top applications will be a disruption to Movie theatres. Reasons behind it are smartphone penetration, cost effectiveness, convenience of service, personal medium and availability of International content. But it is also difficult to achieve certain theater factors such as screen size & sound quality, theatrical experience and ambience in OTT platforms. This study suggested that viewers of the modern era are constantly searching for original, connected, and interactive entertainment and they are ready to pay extra money to seek a completely immersive experience in movie theatres or OTT platforms. Thus, in the long term, OTT platforms and movie theatres will coexist. The study will finally conclude by giving suggestions on how movie theatres compete to stay relevant, in the minds of their consumers in the current marketplace, where video content is easily accessible on OTT platforms from the convenience of their homes. 

There has been a big transition in the Indian movie theatre industry, from tiny street rolling-image frames to compact theatres in villages and towns to single projector theatres and finally massive multiplex chains. India is one of the world's biggest growing markets, with a GDP scale of 6-7 percent, a per capita consumption rise of around ~ 9 percent, as well as the third largest purchasing power parity economy in the entertainment and leisure sector, attracting rapid growth. The tendency to spend on recreation and entertainment is growing, with favorable demographics and increasing disposable spending, higher than the economy itself. The rise of the internet still continues to increase doubt as to where the future of the movie theatre industry is going given the technological developments that took the industry to the present position. Although the internet has helped to produce (digital) products and services more efficiently, it has the ability to improve efficiency and decrease costs as well. This will continue to build potential options for the consumer that can threaten other current possibilities. And OTT platforms are has become one of the film theatre industry’s disruptive innovations.

Over-the-top (OTT) media platform refers to something like a digital video platform which is distributed explicitly to consumers bypassing cable, radio and satellite tv channels over the Internet that usually act as distributors of those content. Over the past few years, owing to the rise in internet consumption, the media and entertainment sector has seen a significant push. This transition was motivated by factors such as fast internet connectivity, cheaper smartphones, extra screens, competitive data plans, and greater bandwidth capacity. Over the years, Over the Top (OTT) services have redefined their goals and customer desires. The growth of OTT networks has affected the movie theatre industry.