Future of Cinema: Streaming Mergers and Their Impact

The Issue in Simple Terms

A global streaming platform is planning to acquire a major Hollywood studio. If this merger proceeds, a single company could dominate film production, distribution, and exhibition. Traditionally, film studios produced movies, theatres screened them, and distributors acted as intermediaries. However, the separation of these roles is increasingly blurring, as streaming platforms evolve.

How Streaming Has Already Changed Viewing Habits

Binge-watching replaces weekly cinema visits: Viewers now consume entire seasons in one or two sittings, moving away from regular theatre visits. For example, a web series like Sacred Games is often watched over a single weekend rather than as a shared cinematic experience.

Rise of direct-to-OTT releases: Many films now bypass theatres, opting for direct releases on streaming platforms. For instance, movies such as Gulabo Sitabo premiered on OTT services during the pandemic, skipping theatrical releases altogether.

Preference for shorter attention formats: Audiences increasingly lean towards 30–40 minute episodes instead of lengthy films, impacting how stories are structured and paced.

What Changes When One Company Controls Everything

Content becomes data-driven: Decisions are increasingly guided by viewer analytics instead of creative risks. For instance, if crime thrillers show higher completion rates, platforms may commission more of these, potentially limiting genre diversity.

Risk-averse filmmaking: Experimental or unconventional cinema might find it challenging to secure funding. Films like Ship of Theseus or Court may struggle to gain backing on large, algorithm-driven platforms.

Promotion power shifts to platforms: Platforms control visibility through homepages and recommendations. This means that while one flagship show is heavily promoted, numerous smaller films may go largely unseen.

India-Specific Impact with Practical Examples

• Impact on Theatres: Single-screen theatres in tier-2 and tier-3 towns, including parts of Uttar Pradesh and Bihar, are under pressure, with many already shutting down due to reduced footfall.
• Dependence of multiplexes on spectacle films: Big-budget films like RRR and Jawan succeeded mainly because of their appeal on the big screen.

• Impact on Indian Filmmakers: Creators may feel pressured to convert film ideas into multi-episode series to enhance viewer retention.
• Budget and creative control: Directors might face constraints when platforms demand modifications based on audience data and engagement metrics.

• Regional and Language Cinema: Regional films, including Malayalam cinema, can reach global audiences through OTT platforms, though narratives might be altered for broader appeal.
• Risk of cultural dilution: Local dialects, social contexts, and deeply rooted themes may be softened to attract wider audiences.

Consumer Choice: Is It Real?

While viewers seem to have endless options, their choices are largely shaped by algorithms. For example, a user searching for family dramas may only see similar recommendations, while documentaries or independent films remain hidden.

Competition and Policy Concerns in India

Smaller Indian OTT platforms may struggle to compete with global streaming giants, leading to fewer strong domestic platforms. Regulatory bodies, such as the Competition Commission of India, may need to evaluate if major global mergers adversely affect competition in domestic media markets.

Key Takeaway for India

Indian cinema showcases vast social, linguistic, and cultural diversity. While global media mergers can provide investment and technology, they also risk diminishing creative space for independent voices and regional stories. Public policy must strike a balance between fostering innovation and preserving cultural diversity, ensuring cinema remains a shared social experience.

Frequently Asked Questions (FAQs)

Q1. How will streaming platform mergers affect traditional cinemas?
Answer: Mergers may lead to increased competition for traditional cinemas, causing closures, especially in smaller towns where footfall has already declined.

Q2. What is the impact of direct-to-OTT releases on filmmakers?
Answer: Filmmakers may face pressure to adapt their works for streaming, with potential constraints on creative freedom and storytelling formats.

Q3. Are algorithms shaping viewers' choices?
Answer: Yes, algorithms significantly influence viewer recommendations, often limiting exposure to diverse genres and independent films.

Q4. How do streaming platforms affect regional cinema?
Answer: While regional films gain wider audiences, there is a risk of cultural dilution as stories may be altered for broader appeal on OTT platforms.

Q5. What role does public policy play in the film industry?
Answer: Public policy is crucial in balancing innovation and competition, ensuring the preservation of cultural diversity in cinema amidst global mergers.

UPSC Practice MCQs

Question 1: What is a primary concern regarding streaming platform mergers?
A) Increased competition for traditional cinemas
B) Better funding for independent films
C) Enhanced viewer choice
D) More theatrical releases
Correct Answer: A

Question 2: How have viewer habits changed with the rise of streaming?
A) Increased theatre attendance
B) Preference for weekly episodes
C) Binge-watching seasons
D) Less demand for short episodes
Correct Answer: C