OTT platforms turn free hits into paywalled shows to boost subscribers
Industry experts point out that when producers making shows for their YouTube channels, move that series to an OTT platform, they receive a commissioned fee that covers the entire production cost. In contrast, when they were creating content for YouTube, it was an investment into the IP, and the earnings depended on the views generated on YouTube. As a result, the recovery was slower. However, when a show moves to an OTT platform such as Amazon, Netflix, or JioHotstar, the deals are structured in a way that the producer is paid upfront for the IP. Additionally, if the IP is highly successful, the producer can also charge an IP fee.
