GD Topic - Will the movie business shift from Theatres to OTT Platforms?

Published in Group Discussion (GD) Topics with Answers category by MBA Skool Team

5 people are having a discussion on the topic (Leo, Sophia, Tom, Jennifer, Brad). The GD topic is Will the movie business shift from Theatres to OTT Platforms?

Category: Technology, Social

Group Discussion Starts

Leo: Hi everyone. Our topic for todays group discussion is Will the movie business shift from Theatres to OTT Platforms? Well in my opinion, while OTT platforms have made significant inroads, movie theatres and stage theatres are here to stay.

Sophia: Hi all. I agree to what Leo says. Even though a lot of movies are being released on OTT platforms, specially during the pandemic, eventually people are going to prefer going to movie theatres. That is because people go there for socializing, ambience and spending time with friends.

Brad: Hey all. I think differently. I feel OTT platforms like Netflix, Amazon Prime, Disney+, Hotstar, Hulu etc. would eventually replace the concept of movie theatres. OTT platforms give the viewers flexibility to watch the content of their choice at the comfort of their home. Also, it is cheaper that buying movie tickets everytime.

Tom: Even I feel the same. You can watch the latest movies, shows, sports etc. all as per your convenience. In movie theatres, you are bound by show timings, ticket availability, car parking etc. You have take that extra effort to go there.

Jennifer: That's true, but watching movies on the big screen cannot give that experience on your mobile screen or TV. Movies theatres have state of art Dolby stereo as well as immersive infrastructure.

Brad: But the wide range of content available on OTT platforms round the year is any day better than going out. With lockdown restrictions, people will also be skeptical to step out.

Tom: In fact, such is the positive impact of OTT platforms, some of the most prominent movie production banners have released their movies and shows online rather than in theatres. Even they understand the changing business trend.

Leo: Yes, OTT has changed the way content is released. But going to theatres is an experience. All leading cinema brands offer luxury seating, food courts, special 3d effect viewing etc. The ambience and charm of being with people celebrating a movie can never be matched at home or on a mobile screen.

Sophia: That is true. Considering the vast population of people interested in cinema, the demand supply requirement will always ensure people are enjoying latest movies in theatres. In fact, OTT can be called a good substitute to cable TV but not movie theatres.

Tom: For production houses, OTT is better as the return on investment is immediate. As soon as an OTT brand purchases the rights, the producers get their money. Also with exponential growth of internet and smartphones, the reach of OTT platforms is significantly higher than movie theatres.

Jennifer: Well it appears both OTT platforms and movie theatres have their own pros and cons. And there seems to be constant demand for content across both channels and it will continue so.


OTT platforms and movie theatres have their own pros and cons. While OTT is cost effective and convenient, it doesn't offer the experience and socializing entertainment of movie theatres. On the other hand, theatres have a huge operational cost, high investments in infrastructure, staff, limited reach, but OTT platforms are accessible round to clock to a much larger audience.

Facts related to the group discussion

1. Netflix Revenue approximately $25Bn & 200 million subscribers in 2020

2. Prime video revenue $25 billion & w00 million users in 2021

3. In 2020, global smartphone penetration exceeded 75% i.e. more than 6 billion people

This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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