Mumbai: Celebrating its fifth anniversary, Aditya Birla Group’s Applause Entertainment has released over 40 shows on various OTT platforms so far. The leading media, content, and IP creation studio is all set to venture into feature films.
Following the success of its show Scam 1992, Applause Entertainment CEO Sameer Nair is preparing for the upcoming series and movie slate, which includes Scam 2003, Gandhi, Tanaav, and the film “The Rapist.”
Nair believes they have proven their hub-and-spoke model and anticipates that their feature films will follow suit. Applause Entertainment creates content, distributes it to OTT platforms, and licences it, he explained. He wants to increase investments five to tenfold over the next decade in order to produce six to eight films and 12 to 15 web shows per year.
Till now, Applause has released shows that have 16 Indian adaptations, eight book-to-screen reimaginations, and 16 originals. Applause’s first film, “The Rapist,” directed by Aparna Sen, won many awards and nominations. Films like “The Rapist,” “Jab Khuli Kitaab,” “Sharma Ji ki Beti,” and three untitled films starring Bollywood actors will soon be released on OTT platforms as well.
Sharing the excitement of expanding into regional markets with Tamil and Kannada shows, Applause has also acquired the rights to produce an animated web series from Amar Chitra Katha comics and graphic novels.
In conversation with IndianTelevision.com, Nair spoke about a hub-and-spoke model, expansion plans, risk, content creation, and the future of OTT.
On investments by Applause Entertainment
Sameer: We are broadly operating this business, and we plan to invest and reinvest approximately Rs 3,000 crore in content creation over the next five to seven years. That is our broad strategy, and returns are linked to it. We want to work within industry standards, with Ebitda margins of 10 per cent to 15 per cent. But we are still in a growth phase. We are in an investment mode to build the business.
The main revenue stream is made up of making and licencing content. We also built a catalogue. We build a reputation. We build a brand. We build up franchises and universes. We have had many seasons. So it’s making us a bigger, better company.
On the expansion plan
Sameer: The real expansion plan is just continuing to do what we’re doing. We’re continuing to do some bigger series and we are focusing on how we could do that. We are looking to expand into movies and build out a movie slate. We’re doing some animation. We’re also exploring the Amar Chitra Katha (ACK) animation.
On the risk of the hub-and-spoke model
Sameer: We knew exactly what we were doing. We knew we were going to create the series and then licence it. Therefore, no one was going to commission us, and no one was going to order us to make it. We’re going to create it, and then we’re going to show it to people.
Therefore, at the time and still today, our main focus is on producing very high-quality content because we are taking the risk of doing so, and we can’t just produce anything because no one else is going to pay the bills. We have to pay the bill first and then licence it. That has always been a sort of focus in our heads.
On how the pandemic helped
Sameer: From a consumption point of view, the pandemic helped because people watched a lot more content. On the other hand, from a production point of view, the pandemic created a lot of stress and disturbance because of all the lockdowns, people falling sick, and shooting delays. All of that caused a lot of budget overruns. So a lot of our costs went up. A lot of shows and projects have been delayed.
On the pressure to deliver content for OTT
Sameer: When you’re trying to make anything, there’s always pressure on the content side, what’s not the main idea? It took almost 18 months for it to reach the screen. And that process of making, that overriding of always being unsure. Is this good enough? Is anyone going to like this? Is it funny enough? Is it scary? enough? No other costs? Also, the casting of actors, all of that. I don’t call these things pressure, but there is excitement and a little anxiety about all this.
On the effect of OTT platforms cutting down on production cost
Sameer: Well, honestly, we’ve always worked on very tight and very efficient budgets in any case. So to that extent, that doesn’t worry us too much. However, it’s a bit of a cyclical business. There are many platforms. They’re all going after the audience. There will be good and bad quarters. But by and large, I think the market is growing.
The number of customers is growing, and now the whole IPL has moved to Viacom Voot. They will now have more aggressive plans. Everyone is doing different things. So, in general, I believe we believe the market is on the rise. And we would like to sort of float up with it.
On the new series Gandhi
Sameer: Gandhi is one of the most important shows that we are doing. It is an important legacy for us. And expectations will always be there. I don’t think we are too concerned about expectations. What we hope to accomplish is to tell a very important story well.
I’m glad we have Pratik, Hansal, and Ramchandra Guha’s books, which are excellent resources. We’ve got a great plan to put it together and do it. Right now, writing is going on, and soon pre-production will start. We are in a good place and we are looking forward to it. There will be expectations from Scam 2 (Scam 2003) as well. Season two of the Scam series will have expectations, and that happens with every show.
On the Indian OTT-business
Sameer: The industry as a whole is under pressure. When we create a show and licence it to a platform, we want it to work on that platform. We want the platform to be known for the show receiving a large number of viewers. We want them to get subscribers, and we want them to make revenue. We all want them to give us a second season. We’re all working toward the same goal.
So, as a studio, as production houses, as platforms, everyone has the same goal, which is entertaining customers, which is making customers pay, and which is sort of making the whole industry grow. As a result, to some extent, the pressure is on everyone to deliver good quality content, the pressure to deliver eyeballs, and the pressure to deliver revenue in various ways.
On the gap between theatrical release and OTT release.
Sameer: It’s a very good idea, in my opinion. All over the world, there is a window, and the bigger the window, the more chances that the theatre will work better because a lot of audiences believe that if the movie is coming on OTT or TV in three to four weeks, then why bother going to the theatre if it comes six months later or nine months later, and that gap may well make a big difference for a lot of movies. It’s a good idea. I’ve always supported the Windows system. I support theatres. All these mediums must coexist and must exist in sequence.
On the Indian content market on OTT
Sameer: The content market in the OTT space is still very small, even though we think there are a lot of series, so with a click, audiences consume them very quickly. If you deliver content, then they want season two quickly. So I think there’s a lot more scope to do all of that and it depends on us.
From the business side, the better the content, the greater the number of consumers. Currently, OTT reaches about three quarters of a million people. It should reach 300 million and then 600 million in a few years.
The future of OTT content
Sameer: I think it will keep getting better and better because I think people are expecting better content, and it’s a good thing. They’re expecting whatever. It puts more pressure on us to do it. And it will keep improving. We’ll get better at this.
