Streaming Platforms Back Niche Films to Boost Box Office Revenue Before Online Release.

Streaming platforms like Apple and Prime Video are backing niche films to target box office revenue before online release. This strategy could provide them with an additional source of revenue and allow them to experiment with mid-budget, experimental films. Independent exhibitor Vishek Chauhan believes that theatres are no competition for streaming platforms and that they can create hype around a film and monetize it. Streaming platforms may act as independent and arthouse studios, pushing the envelope for brave content and voices in theatres.

Streaming platforms such as Apple and Prime Video are increasingly backing niche films for theatrical releases, aiming to enhance their revenue streams and develop a market for less mainstream content. This strategy not only provides these platforms with an additional source of income but also allows them to experiment with mid-budget, experimental films that might not typically find a wide audience.

According to industry experts, backing theatrical releases can create a tangible brand for streaming platforms and attract bigger talent. Independent exhibitor Vishek Chauhan noted that a good theatrical film can create hype around a film and monetize it effectively [1]. This is particularly relevant for platforms looking to differentiate themselves from traditional studios and cater to more niche audiences.

The strategy also aligns with the strengths of streaming platforms. Their access to audience data allows them to make more informed decisions about which films to back for theatrical releases. For instance, Apple TV+'s "F1: The Movie" became the platform's highest-grossing theatrical release globally, earning an unexpected ₹87.64 crore in India [1]. Similarly, Prime Video's co-produced films like "Ram Setu" and "Bad Newz" have been successful in both theatrical and streaming formats.

However, this strategy is not without challenges. India's diverse market with multiple languages and viewing habits makes theatrical distribution complex. Studios and producers need to navigate varying ticket prices, regional cinema chains, and different festival dates. Additionally, many OTT originals, such as drama series or small-budget social stories, may not have the appeal needed to pull people into theaters, which are often preferred for big stars, action, or emotionally charged stories [3].

Despite these challenges, there are signs of change. Mid-sized films like "Kantara" and "Saiyyara," with no major stars, have emerged as massive hits purely because of word of mouth. These are the kinds of stories that OTT platforms can spot early using their viewer data [3]. This indicates that there is a growing appetite for more experimental and mid-budget content, which streaming platforms are well-positioned to capitalize on.

In conclusion, streaming platforms backing niche films for theatrical releases is a strategic move that could provide them with additional revenue streams and help them develop a market for more diverse content. However, it is not without its challenges, and the success of this strategy will depend on their ability to navigate the complexities of the Indian market and cater to the evolving tastes of audiences.

References:
[1] https://www.livemint.com/industry/media/streaming-platforms-niche-films-box-office-apple-tv-prime-video-hoichoi-amazon-mgm-ott-anurag-kashyap-11754465691834.html
[2] https://www.thedailystar.net/entertainment/tv-film/news/fantastic-four-holds-top-spot-stumbles-sharply-the-box-office-3955071
[3] https://www.reddit.com/r/Filmmakers/comments/1meicsz/i_might_be_a_dreamer_butwhy_isnt_an_indie/