The OTT industry is undergoing a significant transformation as content producers seek alternatives to the traditional model of surrendering intellectual property (IP) ownership in exchange for financial backing from streaming giants.
Traditionally, producers have often relinquished up to 100% equity in the created IP to secure funding from studios and platforms. This arrangement, while facilitating project financing, has left producers in a difficult position, especially when aspiring to build a valuable asset base within their companies.
Capital markets are cautiously exploring the potential of independent IP ownership, with a reluctance to back IP creation due to low financial inertia. This dependency on studios and platforms for funding has become a standard, leaving producers with limited control over their intellectual property.
Recognizing the need for autonomy, content producers are now exploring external sources of capital, aiming to assemble projects first and then negotiate with platforms. The key motivation behind this shift is the desire to retain a significant share of IP, particularly for those looking to build an asset base and attract institutional funds.
In India, a network of structured funds and high-net-worth individuals interested in backing projects is gradually emerging. This indicates a positive trend where producers are finding alternative avenues for financing, moving away from complete reliance on streaming platforms.
However, the journey towards independent IP ownership is a work in progress. While some studios like Applause Entertainment and Yash Raj Films have embraced this model, others are cautiously testing new funding sources.
If this model gets widespread acceptance then it will significantly change the way the OTT industry works. Let’s see how it impacts the viewers.