Karan Johar Explains How Money Is Made On OTT Platforms, Shares 'Real Big Business' Formula
Karan Johar, a director and producer, has discussed the dominance of licensed films on OTT platforms over original works.?
He said, ¡°Going to streamers after making a theatrical film is more profitable. When you make a digital film, you get a percentage of the profit. That¡¯s assured, but the numbers aren¡¯t that large. Digital is a volume game. You¡¯ve to make 10 things to really make money. If I just make one show a year or a film, then it¡¯s not that much.¡±
In an interview with The Week, Karan Johar went on to add that, each platform attracts a different type of viewer, but "licensed films," or films that "released in theaters, created havoc, and then came to their service and did hugely well," account for the majority of their viewership.?
The director claims that streaming services have come to the realization that showing theaterical films instead of creating original material is the "real big business."
¡°You can have a large subscription, but if the product isn¡¯t good, the drop-offs can be very high. Everybody might tune in and then you¡¯ll read ¡®Number 1 (show or a film on a platform)¡¯ but what you don¡¯t know what the drop-off rate is ¡ª people may leave a film at just 20 percent, but it¡¯s considered a view.¡±
Kjo added, ¡°Sometimes films can have lesser views but high drop-offs. That means people have watched it till the end, many have seen it till 80-90 percent, which is high. But if you leave a film after 20 percent of it, that¡¯s low, even if it¡¯s the number one film watched. So this is the metrics.¡±
The director went on to say that because there is a sizable audience for the genre, crime and love stories do particularly well on OTT.
¡°People love to watch love stories at home, crime, investigative thrillers but the tentpole massive productions are still for the celluloid,¡± he added.
(To?read more such stories related to movies and shows released on OTTs, keep reading?Indiatimes BINGE)
