Traditionally, when one thinks of OTT platforms, one conjures images of captivating films and binge-worthy shows.
It’s quite astonishing that OTT platforms allocate less than 50% of their revenue towards films or original content, contrary to popular belief.
It’s a myth that these platforms primarily invest in acquiring films or producing original content. The stark reality, however, is that digital platforms invest substantially in sports.
However, the significance of sports is often overlooked whereas in reality, it takes the major chunk of OTT’s spending, with Netflix even venturing into original live sports production in the USA.
Recent statistics paint a shocking picture: in 2023, streaming services witnessed a staggering 52% surge in expenditure. Notably, a considerable 51% of this expenditure was directed towards acquiring rights to showcase sports events online.
In stark contrast, a mere 25% was allocated for the creation of new shows and movies and 24% for buying films.
Making sports shows costs a lot because they have to pay the players and cover other expenses. Plus, sports shows are mostly popular when there’s a big sports vent like IPL happening.
On the other hand, making regular TV shows and movies costs less, and people like to watch them all year long.
The recent merger between Disney and Reliance will further lead to reduced investments in traditional shows and movies in favor of boosting sports content.
However, amidst the dominance of sports programming, there remains optimism for other genres, especially toward content in native languages.
Ultimately, the paramount goal for OTT platforms remains consistent: to keep audiences engaged and satisfied across diverse content preferences.
