Is it time for Hollywood to rethink its distribution model? - Quiptel
24 May 2017

Is it time for Hollywood to rethink its distribution model?

OTT has the power to help Hollywood Studios to build their brands and reach new audiences as traditional ticket sales fall.


The increase in cinema ticket revenues masks the real decline in actual numbers of film fans going to the cinema. The outlook is clear: people are getting used to watching high quality pictures in their homes and going to the cinema less.


With 4k or UHD (ultra high definition) TVs, and fantastic quality home theatre surround sound systems, there is a growing trend for people watching movies and TV series at home. A quick glance at sales data for home entertainment technology shows just how strong this trend is, and the pace at which it’s growing.


So, what can the film studios do to stay in the game?


Well, put simply, they need to recognise this trend and assess how they can innovate and adapt to utilize their skills and strengths, and offer film goers what they want – the best films, and the best experience watching them. At a cost they can accept.


In place of the high costs of distributing to cinemas, studios and content owner can embrace OTT technology which can reliably and cost effectively delivers a near cinema quality experience, direct to the consumer’s lounge.


The rising cost of the cinema experience is a key reason for the fall in ticket sales. Families of four paying £35-£50 on cinema tickets, plus buying expensive drinks and snacks will perhaps only do this for the biggest Hollywood blockbusters. For all other new movies, the chance to take up their favourite place on the home sofa, access their kitchen for a wider selection of more keenly priced items, and pay considerably less to watch the latest film, is much more appealing.


Film companies have the relationships and insight to update their propositions and offer customers quality and value. Having the right people, technology and culture will ensure their success. OTT distribution is already the fastest growing method of content distribution – taking content OTT to the people and their connected devices is now the way forward.


Quiptel CEO Sandip Sarda, has been invited to join two panel sessions at the Digital Hollywood conference this week to discuss this area and much, much more. Attendees can catch him discussing The Internet, OTT, Media and the Hollywood connection on Wednesday 24th May 9.15 -10.15am and again on Thursday 25th May  12.15-1.15 on a panel session entitled: Hollywood? We Don’t Need No Stinkin’ Hollywood.