Netflix New Strategy Leads To Massive Shift in OTT Landscape

The COVID-19 era saw OTT platforms buying films at record prices to attract viewers, providing producers with unprecedented revenue. However, the industry soon felt the after-effects, including skyrocketing remunerations, inflated budgets, and declining satellite and theatrical markets. OTT platforms also witnessed huge losses, paying massive amounts for films that failed to deliver high viewership. As a result, OTT platforms have tightened their buying strategies, adding multiple conditions while acquiring films and shifting focus towards creating original content.

Netflix, a leading OTT giant, has reportedly decided to change its approach, shifting from buying films at record prices to producing more web series and original content locally. The company has opened a large office in Hyderabad, focusing on creating original content in South India. This decision will impact producers, especially those handling big films, as Netflix has been a significant revenue source for OTT deals. Other platforms are following similar strategies, indicating a shift back to theatrical markets as the primary source of recovery.

In the current scenario, only strong content can help producers succeed. Delivering genuinely good cinema is the only sustainable solution, as depending solely on calculations, hype, or packaging is no longer enough. The industry is moving towards a point where theatrical markets become the primary source of recovery, and producers must focus on creating high-quality content to attract audiences.

The latest developments suggest that Netflix has changed its plan, deciding not to acquire South Indian big films at exorbitant prices. Instead, the company will focus on producing web shows and original content in South India. This decision has come as a shocker for many Tamil producers, who relied on Netflix's premium pricing. The situation may push producers to reduce their budgets or stars to lower their salaries, potentially downsizing the production span of South Indian films.