The COVID-19 Pandemic has had an impact on nearly all aspects of our lives, and the film industry is no exception.Movie theaters are by nature a high-risk environment, as they often pack hundreds of people into a small space together for extended periods of time. Additionally, it can be difficult and time-consuming to clean them, making them less than ideal for a highly contagious virus like COVID-19.So how have businesses like movie theater chains and film production companies adjusted to these unprecedented times?
Movie theaters have arguably been hit the hardest, and several major chains such as Cinemex have been forced to close down permanently. Even AMC, the largest chain in America, may be forced to file for bankruptcy. Some smaller chains and independent theaters have allowed small groups of people to book private screenings, in an attempt to earn some money. Several states have announced support for a socially-distanced reopening of theaters, but with distribution companies not releasing new films and most film-goers wary, it remains to be seen if many will reopen at all.
Because of the Covid-19 lockout, the demand for OTT content has skyrocketed. The largest participant in this market, ‘Netflix,’ had a huge income that surpassed $25 billion US dollars in 2020. Similarly, the income of other OTT platforms has skyrocketed! Have you ever wondered how these OTT media generate money?
Over the top media is a video streaming technology that allows you to enjoy content while connected to the Internet. There is also a large selection of content available in both free and paid versions, such as movies, TV series, and documentaries.OTT media creates movies by assembling a crew and funding them out of their own pockets. The second option is to buy the rights from filmmakers in order to expand their content inventory.
With the use of machine learning known as Algorithm, over the top media know their audience’s preferences. This medium is dubbed “The Future of Entertainment,” as our generation is completely reliant on these channels for entertainment. The profitability of OTT media is determined by the number of viewers and subscribers. The more people that use these platforms, the more money may be made through the aforementioned revenue models.
Once a movie becomes a hit and garners huge box office collections, its subsequent satellite and OTT rights will also be priced at exorbitant rates, said Umrotkar. “…that way, OTT releases are not going to compensate for the potential the movie could have had,”both cinemas and OTT platforms will coexist beautifully.