Home News Big Blow For Content Providers To This OTT Platform

Big Blow For Content Providers To This OTT Platform

By Binged Binged Bureau - June 30, 2020 @ 5:00 pm

Big Blow For Content Providers OTT Platform Amazon Prime Video IndiaMany reports have in the past year or so claimed that India is slated to have a big boom in the digital space. The OTT platforms will show a massive jump in the consumption and overall demand. And all this was before the lockdown itself.

The lockdown due to coronavirus pandemic has only fastened the process. What was expected in the coming two to three years is happening in the current time itself.

One of the biggest gainers among the OTT platform is Amazon Prime Video. It is the only one in the existing market the balances the high end with the lowest denominator in India. While it could be visible on the surface, what many aren’t aware of is that it is also the only platform that takes a revenue sharing model with the content providers.

For each hour a movie or a series is watched, Amazon Prime Video gives it’s content provider a part of the revenue. It is the reason why many small to unknown films (in Telugu cinema for example) prefer Amazon Prime Video, as the first choice. It allows them to make money as long as their content is viewed.

The rest of the OTT platforms have an onetime deal. They pay a certain amount upfront, and that’s it. They don’t get anything in case the movie goes way beyond their agreement.

Unfortunately, the pandemic has cut down on the margins of content providers. Amazon Prime Video has cut down the fixed price for them due to an unexpected increase in demand. It means the creators now earn less. The honeymoon period seems to has come to an end. It needs to be seen if the same would continue in the coming days as well, or will there be a change.

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