Netflix is the world’s biggest streaming platform. Peaking in popularity over the COVID-19 pandemic, this video streaming service has long since established itself as a must-have in many households and integrated into various film cultures to produce and stream media.  

Netflix’s arrival in India has changed the world’s largest film industry – Bollywood. Bollywood had its model through which it distributed the films and disseminated video content it produced, but embracing streaming platforms has seen these traditional methods fizzle out. 

Here, we’ll explore the relationship between Bollywood and Netflix. Has Bollywood benefited from Netflix? Let’s find out.  

History of Bollywood Film Distribution

The earliest versions of Bollywood were intended for local and theatrical releases. This meant that films created in India were released in cinemas nationwide and could only be accessed to an international market through physical CDs.

This model was the norm in India for several decades. For a wider audience, if a movie or TV show wasn’t popular, getting a hold of the content was difficult, and when they did have these films, the possibility of them being pirated was high. Studios and producers also had to ensure they invested heavily in theatrical promotion and marketing, as box office success was the only way to generate substantial revenue.

As Netflix gained traction and began spreading its reach, it identified India as a big video market producer and consumer. In 2016, the company entered the country and streamlined many processes in the film industry.

Benefits of Netflix For Bollywood

Bollywood Films Reach a Global Audience

The Internet and streaming platforms bridge the barrier between geographical locations, allowing people to access everything from the latest films to football streaming games. Netflix now allows users to access Indian content digitally regardless of their location. In 2023 alone, Netflix garnered 1 billion views for Indian shows and movies. This means that Bollywood can expand its fan base beyond India’s borders, and the Indian diaspora worldwide can connect with their culture and entertainment.

Financial Revenue

Netflix has experienced substantial financial success in India. In 2023, the company made 22 billion Indian rupees from the country’s market alone. The same holds for studios releasing on the platform. 

Producers can bypass the need for huge box office success to make profits and generate revenue quickly by releasing on streaming platforms and in the cinema.

Through collaborations with Netflix, studios can receive increased project production budgets and a consistent income flow from the platform’s subscription models.

Creative Freedom 

To create original content, Netflix allows producers to experiment with various genres and themes. One criticism of Bollywood is its repetitive content; old films constantly get remade with the same concept. 

With Netflix’s willingness to invest in unique projects, Indian producers can explore storytelling techniques, genres, and formats that usually would not have a place in traditional Bollywood cinema.

Challenges Netflix Has Faced in Bollywood

Competition

Netflix subscribers in the country are projected to be over 2 million. Despite the platform’s success, Netflix faces serious competition from other streaming services, particularly Indian-based streaming platforms like Hotstar and Jio TV, where Indian users can watch films at a lower price to no cost.

Bollywood content on Netflix faces fierce competition from other video content. Indian content needs to be unique to stand out and make considerable profit.

Piracy

Streaming platforms like Netflix may have mitigated the spread of pirated content, but it does not eliminate it. Piracy remains a significant challenge to revenue streams and the growth of digital Bollywood content. 

Closing Thoughts

Netflix has undoubtedly transformed the Bollywood film industry. Its introduction has provided Bollywood with a global audience, unlocked new revenue streams, and fostered creative experimentation. While piracy and competition pose problems, the benefits are undeniable. 

The future of Bollywood lies in embracing innovation, embracing the digital age, and building sustainable partnerships with streaming platforms to ensure continued growth and success.

Disney Star, the broadcaster for the Indian Premier League (IPL) 2024, announced a record viewership of 510 million for the initial 51 matches. As the Tata IPL 2024 approaches its finals with 17 matches remaining, cricket fever has soared to unprecedented levels, establishing new records both in the sport and in terms of viewership. According to data from the Broadcast Audience Research Council (BARC), Star Sports, the broadcasting channel for IPL 2024 under Disney Star, has attracted 510 million viewers during the first 51 matches. This figure represents a 5% increase compared to the previous high recorded in 2019 for the same number of matches.

Additionally, the broadcaster has experienced an 18 per cent increase from the previous edition in terms of total watch time, with viewers spending a staggering 356,000 million minutes. Disney Star also witnessed a 19 per cent increase in TVR (television viewership rating) for the first 51 matches, compared to the 2021 season.

As the conclusion of the IPL 2024 league stage approaches, the competition for playoff berths is intensifying, with eight teams competing for the last four positions. Mumbai Indians and Punjab Kings are not in contention for the IPL 2024 playoffs race. Kolkata Knight Riders and Rajasthan Royals are striving for the top two spots, while Delhi Capitals and Lucknow Super Giants are locked in a battle for fourth place with 12 points each.

In a release, Disney Star said, “The Tata IPL 2024 season is reaching its fever pitch, and Star Sports is capturing the electrifying race to the playoffs with unique surround programming. The battle for the top four positions is set to go down to the wire, promising thrilling and exceptionally close matchups, making it one of the most compelling races in IPL history.

Disney Star is airing the Tata IPL 2024 across 14 channels in 10 languages. The marketing campaign for the 17th edition of the tournament, titled “Ajab IPL ke gazab rang,” revolves around the idea that a fan’s allegiance shines through during their team’s journey in the tournament, with each IPL moment resonating uniquely with diverse viewers.

This year, Star Sports has collaborated with Tata Play and Airtel Digital TV to provide IPL matches in 4K resolution and introduced value-added services.

In 2023, India witnessed a modest increase in the number of movie screens, with Hindi-speaking regions leading the growth, followed by the east and south, as per the latest FICCI-EY media and entertainment industry report. Despite the pandemic-induced challenges, the country’s cinema landscape showed signs of recovery, with the total number of screens surpassing 2018 levels. However, the expansion remains heavily skewed towards certain regions like Delhi NCR, Maharashtra, and Bengaluru, leaving states like Bihar, Uttar Pradesh, and Odisha relatively underserved. High real estate costs and audience disconnect with contemporary movie themes contribute to this imbalance. Multiplex chains are eyeing expansion into untapped markets, awaiting infrastructure development for further growth.

India’s cinema industry, renowned globally for its diverse and vibrant film culture, has faced various challenges in recent years. The COVID-19 pandemic dealt a severe blow to the sector, forcing many theatres to shut down temporarily or permanently. The subsequent restrictions on movie releases and audience capacity further exacerbated the situation. Despite these setbacks, the gradual reopening of theatres and the resurgence of audience interest in cinematic experiences have injected a sense of optimism into the industry.

The increase in the number of movie screens in 2023, albeit modest, reflects a positive trend amidst adversity. The growth, particularly in Hindi-speaking markets, underscores the resilience of regional film industries and their ability to adapt to changing circumstances. The rise in screens in the east and south also signifies the importance of these regions in the overall cinematic landscape of the country.

However, the disparity in screen distribution across different states remains a notable challenge. While states like Maharashtra and Karnataka boast a significant number of screens, others such as Bihar and Jharkhand lag behind. This imbalance not only limits access to cinema for residents of these regions but also hampers the growth potential of the industry as a whole.

One of the primary factors contributing to this imbalance is the high cost of real estate, especially in urban centers where multiplexes are typically located. The exorbitant prices make it economically unviable for cinema operators to establish new theatres in smaller towns and cities. As a result, the expansion of multiplex chains has been concentrated in areas with favorable infrastructure and consumer demand, leaving other regions underserved.

Moreover, audience preferences and viewing habits vary significantly across different parts of the country. While metropolitan cities may have a diverse audience that appreciates a wide range of film genres and languages, smaller towns and rural areas often have more limited tastes. This disparity in preferences influences the type of content that filmmakers produce and the distribution strategies adopted by distributors and exhibitors.

In recent years, there has been a growing focus on catering to the preferences of urban audiences, particularly those in metropolitan areas. Films targeting the multiplex-going demographic, featuring niche genres and unconventional storytelling, have gained prominence. However, this trend has also led to a neglect of audiences in non-metro regions, where traditional, mainstream cinema continues to dominate. To address these challenges and promote inclusive growth, industry stakeholders must adopt a holistic approach that takes into account the diverse needs and aspirations of audiences across the country.

This includes exploring innovative business models, leveraging technology to enhance the cinematic experience, and investing in infrastructure development in underserved regions. Additionally, government intervention and policy support are crucial in facilitating the expansion of the cinema industry and ensuring equitable access to entertainment opportunities. Incentives for multiplex operators to establish theatres in non-metro areas, subsidies for the development of cinema infrastructure, and initiatives to promote regional cinema can help bridge the gap and foster a more inclusive film ecosystem.

Ultimately, the growth of India’s cinema industry hinges on its ability to embrace diversity, adapt to evolving consumer preferences, and overcome geographical and socioeconomic barriers. By addressing these challenges collectively and collaboratively, stakeholders can unlock the full potential of the country’s rich cinematic heritage and drive sustainable growth for the future.

Netflix Inc. experienced its strongest beginning to a year since 2020, surpassing expectations by attracting a higher number of new subscribers. This was attributed to a robust lineup of original content and measures taken to address password sharing. According to a statement released on Thursday, the company added 9.33 million customers in the first quarter of 2024, nearly doubling the average analysts’ estimate of 4.84 million. Netflix’s customer growth spanned across global markets, with notable strength observed in the US and Canada.

These new subscriptions contributed to the company exceeding forecasts for both revenue and earnings. Despite the growth, Netflix shares were down 4.6 percent to $582.70 at 6:03 p.m. New York time. They were up 25 percent this year through the close of regular trading Thursday.

Expectations for Netflix’s first quarter had soared in recent days, as one analyst after another published rosy forecasts. In its letter to investors Thursday, the company said subscriber gains will be lower this period, while revenue will increase 16 percent. Netflix also said it will stop reporting paid quarterly membership and revenue per subscriber, starting with the first quarter of 2025. Those metrics have long been the primary way Wall Street evaluated the company’s performance, but Netflix has tried to shift the focus to traditional measures like sales and profit. Management will continue to report major subscriber milestones.

“The movement to no longer disclose quarterly subscriptions from next year will not go down well,” Paolo Pescatore, founder and analyst at PP Foresight, said in an email. “More so given the subscriber growth that the streaming king has seen over the last year.”

Netflix has rebounded from a slowdown in 2021 and 2022 to grow at its fastest rate since the early days of the coronavirus pandemic. That is due in large part to its crackdown on people who were using someone else’s account. The company estimated more than 100 million people were using an account for which they didn’t pay. While executives at Netflix feared a backlash from customers, the company has been able to convince millions of moochers to pay for access.

Those new customers have had plenty to watch. Netflix has delivered a new hit every couple of weeks so far this year, including limited series such as “Fool Me Once” and “Griselda,” the dramas “The Gentleman” and “3 Body Problem,” and the reality show “Love Is Blind.” The streaming service accounts for about 8 percent of TV viewing in the US — and is a leading TV network in most of the world’s major media markets.

“With more than two people per household on average, we have an audience of over half a billion people,” the company said in its letter. “No entertainment company has ever programmed at this scale and with this ambition before.” The recent growth has lifted Netflix shares back toward record highs, giving the company a market value of more than $260 billion. It set an all-time closing high of $691.69 in November 2021.

Some analysts worry that Netflix is once again trading at a valuation that far exceeds the fundamentals of the business. The company delivered sales of $9.33 billion, rising 15 percent and beating estimates of $9.26 billion. Net income grew to $2.33 billion, or $5.28 a share, also above projections. Those figures are below companies with smaller market values, the boost from the crackdown on account sharing is temporary, and Netflix executives have been reluctant to put a firm timetable on when that growth would stop.

Yet even skeptical analysts have been impressed with the company’s recent performance, lifting their price targets for investors. To sustain its growth going forward, Netflix has also introduced a cheaper, advertising-supported version of its service targeting cost-conscious customers. It’s also begun to invest in live programming, including stand-up specials, wrestling, and an upcoming boxing match.

About 40 percent of Netflix’s new customers are selecting the advertising option in markets where it’s available, the company said.

Sony Pictures Entertainment and Apollo Global Management are discussing making a joint bid for Paramount Global, according to a person familiar with the matter. The companies have yet to approach Paramount, which is in exclusive deal talks with Skydance Media, an independent studio led by David Ellison, though some investors have urged Paramount to explore other options. The competing bid, which is still being structured, would offer cash for all outstanding Paramount shares and take the company private, the source said.

Sony would hold a majority stake in the joint venture and operate the media company, and its library of films, including such classics as “Star Trek,” “Mission: Impossible” and “Indiana Jones,” and television characters like SpongeBob SquarePants, according to the source. Sony Pictures Entertainment Chairman Tony Vinciquerra, a veteran media executive with deep experience in film and television, would likely run the studio and take advantage of Sony’s marketing and distribution.

Apollo would likely assume control of the CBS broadcast network and its local television stations because of restrictions on foreign ownership of broadcast stations, the source said. Sony’s parent corporation is headquartered in Tokyo. The Sony-Apollo discussions. Paramount and Sony declined comment. Apollo could not be reached for comment.

The private equity firm previously made a $26 billion offer to buy Paramount Global, whose enterprise value at the end of 2023 was about $22.5 billion. A special committee of Paramount’s board elected to continue with its advanced deal talks with Skydance, rather than chase a deal “that might not actually come to fruition,” said two people with knowledge of the board’s action. The board committee is evaluating the possible acquisition of the smaller independent studio in a stock deal worth $4 billion to $5 billion. Skydance is negotiating separately to acquire National Amusements, a company that holds the Redstone family’s controlling interest in Paramount, according to a person familiar with the deal terms. That transaction is contingent upon a Skydance-Paramount merger.

Film producers and streaming platforms are adopting a new strategy to lure viewers to watch their titles at a time when attention spans have shrunk amid a surfeit of entertainment options. They are increasingly releasing short clips or snippets, usually lasting between five and 10 minutes, on social media channels like Twitter, Instagram, and Facebook, giving away major dialogues, scenes, and songs of the titles to get the viewers hooked. From introducing pivotal characters to revealing major story arcs, these are circulated across channels on both the studio or platform’s own accounts as well as via collaborations with content creators and entertainment portals.

While some industry experts say this is one way to build volume and generate buzz around a film or a show through means other than just the trailer and traditional marketing techniques, others say the strategy can backfire with significant chunks of the film or the show available on social media for free, diluting the need to sign up and pay to watch it either in theaters or on an OTT platform. Illegal leakages from the film or show via pirated means can add to the crisis.

“Attention span of audiences on the internet is low and it takes a lot more to get someone hooked to your content, than it did before. Especially for platforms or producers that do not boast of huge budgets, more clips increase the chances of the content going viral organically, since merit is no longer the only criterion for content to catch on to viewers’ algorithms,” said Girish Dwibhashyam, vice-president, strategy and business head at DocuBay, a documentary-streaming platform. Dwibhashyam conceded that releasing multiple clips does take away a part of the story’s reveal, but was quick to add that the bigger priority is to get noticed.

Social media is replete with clips from movies and shows, often without spoiler warnings, Avinash Mudaliar, CEO, OTTPlay, the recommendation and content discovery platform for streaming services launched by HT Media Labs (part of the same organization as Mint) said. These can be of three kinds: promotional videos including trailers of movies and shows, celebrity interviews, and songs posted by the production house or OTT platforms where content is often scripted and reviewed and thus, rarely divulge the plot or storyline of the movie. Then there is influencer-led content including clips on social media in reaction to popular or newly-released movies and shows, which do contain snippets of storylines (or more), but the majority are accompanied by spoiler warnings, he said.

But there are also illicit or bootlegged clips that are often recorded in theaters via mobile phones or other devices, distributed online via social media and websites where people can quickly download content, often revealing entire storylines, including plot twists and endings. “Of these, the first category alone is controllable. Influencer-led content, while controllable to some extent, is not in collaboration with the production company,” Mudaliar added. “While most influencers are careful enough to include spoiler warnings, or restrict divulgence of the storyline, leaks around certain plot lines do happen. In most cases, this ends positively, contributing to the promotional buzz and piquing interest.”

However, the last category, of pirated content, is completely uncontrollable, and highly detrimental to paid viewing options, impacting both production companies and OTT platforms. Rajat Agrawal, director and content syndication head, Ultra Media & Entertainment Group, said in the case of old films, releasing snippets on social media channels can be a conscious decision or even a marketing strategy to lure the viewer to watch the complete film on the OTT platform or YouTube channel where the title is being streamed. “Though, if the film is newly released and is running in theaters, clips secretly shot in cinemas and uploaded to these platforms have the potential of giving away some important scenes and (part of the) narrative,” Agrawal said.