Academy of Marketing Studies Journal (Print ISSN: 1095-6298; Online ISSN: 1528-2678)


Is OTT Industry a Disruption to Movie Theatre Industry?

Author(s): Mr. Sony Varghese and Selvin Chinnaiah

The Internet is rapidly transforming the entertainment industry in India. The size and effect of the future use of digital content is massive for the country's mobile phone user base, led by the launch of 3 G and 4 G networks and millions of subscribers. Audiences are using numerous different technologies to view films, documentaries, and web series on their smartphone devices. Some examples include Netflix, Amazon Prime, Hotstar and Zee5, which provide movies and other video content through internet. It has become a challenge to the Movie theater industry. Now that theatres are shut down and film releases are suspended in the midst of the national shutdown, cinema owners worry that the universal experience of viewing movies will eventually change digital platforms, leading to a dip in viewers visiting once the screens open up again. The aim of this study is to learn how digital streaming platforms are affecting Indian movie theatres, and how young people use these new digital platforms to access video content. This research analyses the viewing habits of young people through digital platforms and movie theatres for video content. This report also analyses the changing dynamics in the film industry in India. Almost 50% respondents agree that over the top applications will be a disruption to Movie theatres. Reasons behind it are smartphone penetration, cost effectiveness, convenience of service, personal medium and availability of International content. But it is also difficult to achieve certain theater factors such as screen size & sound quality, theatrical experience and ambience in OTT platforms. This study suggested that viewers of the modern era are constantly searching for original, connected, and interactive entertainment and they are ready to pay extra money to seek a completely immersive experience in movie theatres or OTT platforms. Thus, in the long term, OTT platforms and movie theatres will coexist. The study will finally conclude by giving suggestions on how movie theatres compete to stay relevant, in the minds of their consumers in the current marketplace, where video content is easily accessible on OTT platforms from the convenience of their homes.

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