Karan Johar analyzes film economics, reveals business model he follows, says OTT platforms prefer ‘licensed films’ over originals | Bollywood News

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“We’re seeing a rebound from satellite, but this is at an all-time low because digital is important right now. Then there’s digital recovery, which takes a big chunk of the pie. If it’s worth it and the movie is musical enough, we’ll also add a musical element.Fourth is the estimated worldwide box office potential.The lowest possible number for each genre.A number for all of these. …That’s the best model, but it may not work if it’s way over your budget. Ideally, your budget should be the same as these four factors.”

Before a movie is released and hits box office records, it usually arrives in theaters with a blurb, but now it also includes memes, Instagram reels, and even GIFs. Dzhokhar says if the movie is not good, it doesn’t matter. “You can’t save a bad movie, and you can’t stop a good movie. This (marketing) is all vanilla icing, but nothing matters if the cake isn’t solid.”

OTT or theatrical?

Karan Johar, who also produces films for streaming platforms, says it is “more profitable” if he can afford to make his own films for theatrical distribution rather than commissioned OTT projects. “For theatrical movies, they (streaming platforms) have the right to watch the movie, read the script, and choose whether they want it after its theatrical release. Additionally, movies made specifically for the streaming service There are also instructions, so you need to listen to their instructions.

“It’s more profitable to make a theatrical movie and then distribute it to a streamer. If you make a digital movie, you get a cut of the profit. That’s true, but not that many. It’s a game. You have to make 10 things to really make money. If you just make one show or movie a year, it’s not that much.”

How can a film succeed on OTT?

Karan Johar said each platform has its own kind of audience, but the ones with the biggest audiences are those that “released in theaters and caused a huge uproar, and then got served and became huge successes.” It was explained that it was a “licensed film.” The filmmaker said streaming platforms have realized that “the real big business” is showing theatrical films, not original productions.

This is a burning question, as most new movies hit number one right after their debut on any streaming platform. However, Dzhokhar explained that there is a catch because a key metric that is kept secret is the “turnover rate.”

“You can sign up for a large subscription, but if your product isn’t good, the drop-off can be very high. Once everyone watches your channel, it’s like, “No. 1 (show on the platform or Movies)” may be displayed, but we do not know what the abandonment rate is. The idea was that people might leave the movie after only 20%.

“Even if a movie has a low number of views, its ratings can drop significantly. That means people watch it all the way to the end, often 80-90% of the time, which is a high number. But , even if it’s the most-watched movie, if you quit the movie after 20% of the time, it’s low. That’s the metric.”

The filmmaker added that crime and love stories work very well on OTT and the genre has a huge audience. “People love to watch love stories, crime and investigative thrillers at home, but big, big productions are still destined for celluloid,” he added.