Navigating the ever-evolving dynamics of content production for OTT

In India’s content production landscape, creators and producers often find themselves without
ownership or intellectual property (IP) rights for their work.

By
  • Sunder Aaron,
| February 23, 2024 , 11:42 am
Regional OTT content volumes exceeded Hindi language content in 2023 for the first time. (Representative Image: Bastian Riccardi via Unsplash)
Regional OTT content volumes exceeded Hindi language content in 2023 for the first time. (Representative Image: Bastian Riccardi via Unsplash)

In recent years, India has witnessed an explosion in Over-the-Top (OTT) platforms, with a plethora of streaming services vying for the attention of a burgeoning digital audience, many of these viewers having abandoned traditional broadcast television channels. While this exponential growth in digital audience presents unprecedented opportunities for content creators, it also brings to light a host of challenges, particularly in the realms of content licensing, escalating production costs, and the imperative for rationalization in an increasingly competitive market. Also, writers find themselves at the intersection of creativity and commerce, striving to evolve while gaining recognition and relevance amidst the highly competitive market for content creation.

Challenges Amidst Content Licensing

In India’s content production landscape, creators and producers often find themselves without ownership or intellectual property (IP) rights for their work. Unlike in the US and UK where laws like financial interest and syndication (until 1993) and Terms of Trade once ensured creators retained significant ownership and licensing rights, the Indian market lacks such protections. This trend has persisted with the rise of OTT platforms, where creators are typically paid upfront but relinquish all future rights to their content. This powerful dynamic not only limits creators’ potential income but also tilts the balance heavily in favour of channels and platforms. While other countries have laws like terms of trade, mandating a portion of IP ownership for creators, India lacks such provisions, further amplify the challenges faced by content producers in an already competitive industry. Implementing such protections for independent producers and creators would lead to a much healthier and expanding content ecosystem.

In the high-stakes game of content licensing, where exclusive rights command top dollar, writers often find themselves on the sidelines as negotiations unfold between platforms and production houses. While producers and directors wield significant influence in sealing lucrative deals, the contributions of writers—who lay the foundation for captivating storylines and compelling characters—are frequently undervalued. This disparity not only undermines the creative process but also perpetuates a system where writers are relegated to the periphery of the content creation ecosystem. Additionally, OTT platforms are now forced to evolve and better understand their target audience’s preferences, leading to improved content curation and audience engagement. In an environment marked by market consolidation and rationalization efforts, writers must assert their rightful place as indispensable collaborators in the content production ecosystem. By advocating for greater visibility, representation, and creative autonomy, writers can drive transformative change and elevate the standards of storytelling on OTT platforms. Additionally, fostering a culture of collaboration and mutual respect among stakeholders—producers, directors, actors, and writers—is essential for fostering a conducive environment where creativity thrives and artistic expression flourishes.

Market Rationalization in India

India’s content market is still relatively healthy, but significant market rationalization is currently underway leading to a slowdown in inflated talent, equipment, and production costs due to oversaturation and over expenditure. This trend is compounded by global market changes and domestic market mergers, leading to fewer buyers and reduced demand for content, broadly making it a buyer’s market since 2023. Even high-quality projects struggle to secure financing and commissions due to the slowdown and rationalization across the industry. This slowdown prompts a recalibration of audience targeting and content preferences, with companies focusing on gaining better understanding of their target audience and making greater attempts at catering to their viewership more effectively. Despite fewer projects and rationalizing costs, this period of adjustment is expected to one day leading to better results and a healthier overall OTT landscape as companies streamline operations and align with audience demands.

Escalating Production Costs and the Writer’s Plight

With the emergence of OTT platforms in India, aspiring writers have found new avenues to showcase their talents beyond traditional Bollywood or television scripts. The opportunity to work on long-form premium scripted dramas has allowed writers to improve their skills and adapt to a more global storytelling sensibility, akin to what is seen on OTT platforms. This shift has elevated the quality of storytelling and production standards not only in India but also globally. However, despite the growth of OTT services, there remains a significant portion of the Indian audience that has yet to embrace these platforms fully. To attract a broader subscriber base, OTT platforms may need to adjust their storytelling to appeal to a wider audience, potentially making it more mainstream while still retaining elements of quality and sophistication.

Another pressing issue in India’s content industry are the inflated costs we have experienced in the industry over the past few years as demand outran supply for creative and technical talent, production equipment, production services etc., Overall costs are expected to decrease as the market undergoes rationalization and fewer projects means slowdown in opportunities to employ talent and production assets. Additionally, talent, especially writers, are facing challenges as they’re forced to spread themselves thin across multiple projects. Due to the lack of lucrative compensation and exclusive engagements, writers often find themselves working speculatively on numerous projects simultaneously, compromising the quality of their work. Unlike executives or managers who are typically exclusive to one company, writers and other talent are forced to work for multiple platforms or projects concurrently, further impacting their dedication and output. This practice stands in stark contrast to markets like the US, where exclusivity is the norm, ensuring writers are fully committed to their projects.

In conclusion, as production budgets soar to unprecedented heights, driven by the relentless pursuit of premium content, writers are faced with mounting pressure to deliver blockbuster-worthy scripts within constrained timelines and resource allocations. Despite being the architects of imaginative worlds and thought-provoking narratives, writers often bear the brunt of cost-cutting measures and creative reductions, compromising the integrity and authenticity of their vision. Moreover, the lack of recognition and remuneration commensurate with their contributions perpetuates a cycle of undervaluation and exploitation within the industry. However, challenges persist, particularly regarding the overextension of talent, especially writers, who often juggle multiple projects due to insufficient pay and lack of exclusivity. This practice compromises the quality of writing, highlighting the need for industry-wide changes to ensure writers are adequately compensated and can focus exclusively on their projects, ultimately enhancing the overall content quality.

Sunder Aaron, Co-founder, and Managing Partner, Locomotive Global Media, a production house.

Views expressed are personal.

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