Theatre vs. Streaming: Ormax Media Study Challenges 'OTT Killed Cinema' Narrative in India

MEDIA-AND-ENTERTAINMENT
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AuthorSimar Singh|Published at:
Theatre vs. Streaming: Ormax Media Study Challenges 'OTT Killed Cinema' Narrative in India
Overview

A new study by Ormax Media reveals that the audience base for streaming platforms and theatres remains largely distinct in India, countering the narrative that Over-The-Top (OTT) services have killed cinema. The research indicates 81 million Indians exclusively use streaming, while 76 million exclusively watch films in theatres, suggesting limited cannibalization and continued audience interest in cinematic experiences when content is compelling.

A recent study by media and entertainment research firm Ormax Media, titled 'Venn It Happens: SVOD & Theatrical audience intersection,' indicates that the perceived impact of streaming platforms on theatrical footfalls is less severe than commonly believed.

The study found that 81 million people in India consume content solely on streaming platforms, while 76 million individuals exclusively watch films in theatres. This segmentation highlights sizable exclusive audiences for both ecosystems and suggests that the extent of cannibalization is significantly smaller than popularly assumed.

Sanket Kulkarni, head of business development (theatrical) at Ormax Media, stated that the data "significantly weakens the 'OTT killed theatrical' narrative." While streaming platforms have grown substantially, especially during the pandemic, with India's streaming subscriber base reaching 601 million and expanding at 10% annually, their growth has not decimated theatre attendance.

Producer Rajesh R Nair commented that "Cinema is killing cinema by not giving out the right content to audiences," particularly in the case of Hindi films. He pointed to the success of non-Hindi films, such as the Gujarati film 'Laalo-Krishna Sada Sahaayate' which collected over Rs 50 crore, as evidence that audiences are eager to visit theatres if makers provide engaging and suitable content.

Impact:
This analysis is crucial for understanding the evolving landscape of India's media and entertainment sector. It suggests that companies can leverage both streaming and theatrical releases, provided content strategy is aligned with audience preferences. For investors, it implies that theatre chains and film production houses may still find robust demand if they focus on quality content, rather than viewing the streaming boom as an existential threat. This could positively influence investment decisions within the sector.
Rating: 7/10

Difficult Terms:
SVOD (Subscription Video On Demand): Streaming services that require users to pay a subscription fee to access content, such as Netflix, Amazon Prime Video, or Disney+ Hotstar.
Theatrical footfalls: The number of people who attend cinema halls or movie theatres to watch films.
Cannibalisation: When a new product or service offered by a company or within an industry takes away business or audience from an existing product or service.

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