Impact of OTT Platforms on Cinema Industry

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The film and TV industry is faced with a new challenge in the form of OTT platforms. With these, content can be accessed anywhere for a relatively low fee. This has led to an increase in viewership on these sites, which threatens the movie theater industry’s dominance over cinema-goers. In addition, many of these platforms are not just viewing but also creating their content, which is blurring the lines between cinema and TV. Here are seven ways in which OTT platforms are impacting the film industry:

Introduction About OTT Platform?

OTT platforms offer to stream TV shows, movies, and other content over the internet. This can be done either through a website or an app.

These are competing with new production houses and movie theaters for viewership. This has led to a decrease in revenue for these industries as people shift to cheaper and more convenient options.

Massive Demand for App-based Streaming Service

Increased competition for eyeballs: The most apparent impact of OTT platforms is the increased competition they provide for viewers’ attention. This is particularly true in markets where there are many OTT platforms available. In the US, for example, there are now more than 200 streaming services, many of which are targeting specific audiences with niche content. This has led to a decline in viewership for traditional TV channels, as people are increasingly turning to OTT platforms for their entertainment needs.

Here’re few multi-platform apps that indeed provides online streaming content with ultra HD quality;

  • Netflix – Direct Releases, Original seasons, Top-rated shows, Popular movies, etc. Read the success story of Netflix from Influencive.
  • Prime Video – Home of restricted content, Television Shows, HD movies, Kids, and OTT releases.
  • Hulu – Extremely selective content along with Live TV channels.
  • Cinema HD – 3rd Party Android application, free application, limited Ad model, plenty of streams without a subscription. Check out the official website
  • Diney+ Hotstar – This is a perfect OTT service if you’re looking for a complete entertainment package like Sports, Movies, Shows, and even Podcasts.
  • Filmplus is another Android application containing aired shows, released movies in HD quality, with subtitles. The good part is that it doesn’t ask you to sign up or subscription free.

End of Old Video Distribution Model

The traditional distribution model for films has been one in which movies are released in theaters before being made available on DVD, TV, and other platforms. However, OTT platforms disrupt this model by making movies available online immediately after they premiere in theaters. This is particularly problematic for the movie theater industry, as it results in a loss of revenue from people who would have gone to the theater to watch the movie.

Both DVD and TV Sales Go Down

As mentioned above, OTT platforms disrupt the traditional distribution model for films. This is hurting DVD and TV sales, as people are increasingly choosing to watch movies online instead of buying or renting DVDs or watching them on TV.

Piracy Will Automatically Increases

The increasing of OTT platforms has also led to a rise in piracy, as people are increasingly turning to illegal means to watch content online. This is particularly true for movies, as they are often released online before premiering in theaters.

It will become much easier to make piracy for new release movies or shows. There are many options available to download the content from sources and can have chances to upload them on the Internet widely.

Moving from Theatre to Smart TV or Smart Gadgets

The increase in OTT platforms has led to a shift in spending from movies to TV. This is because people increasingly choose to watch TV shows online instead of going to the movies. This is a problem for the film industry, resulting in a decline in revenue.

Impact on Box Office Revenue

The rise of OTT platforms has also impacted box office sales. This is because people are increasingly choosing to watch movies online instead of going to the theater. As a result, the movie theater industry is losing out on revenue.

Increased Competition for Talent

Another consequence of the OTT platforms is that they provide high competition for talent. This is because many of these platforms are not just viewing but also creating their content. This has led to a decline in the number of people working in the film industry, as they are increasingly choosing to work in television or online video.


The impact of OTT (Over-The-Top) services on the film industry are both significant and continuing to grow. These platforms are releasing the movies in a modern way, able to download content and watch them anytime, anywhere, and impacting box office collections.

It also changes the mindset of viewers, which is hurting the cinema industry as people stop watching on silver screens. The film industry needs to adapt to the changing landscape to survive and thrive in the future.

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