OTT platforms like Netflix, Amazon Prime Video, and Disney+ Hotstar have transformed how we consume entertainment, offering vast content libraries through subscription-based models. Recently, there has also been a significant rise of TV Shows produced by these platforms in-house (i.e. Originals) such as Money Heist, Stranger Things, Mirzapur, Family Man, etc.

Let’s break down the economics of production with a simple example of a fictional Netflix Original show called “Mystery Manor”…

1. Production cost of the show

• Suppose Netflix decides to produce “Mystery Manor,” a 10-episode series.
• The total production cost (including scripting, casting, filming, post-production, marketing, etc.) is $100 million.

2. Revenue from subscribers

• Current Subscriber Base: Assume Netflix has 200 million subscribers worldwide.
• Subscription Fee: Each subscriber pays $10 per month.

3. Impact of the show on revenue

• Acquisition of New Subscribers: Netflix estimates “Mystery Manor” will attract 2 million new subscribers.
• Retention of Existing Subscribers: The show is also expected to help retain 10 million subscribers who might have otherwise cancelled their subscriptions.

4. Revenue generated by the show

• New Subscribers: Revenue from new subscribers = 2 million x $10 x 12 months = $240 million per year.
• Retained Subscribers: Revenue from retained subscribers = 10 million x $10 x 12 months = $1.2 billion per year.

5. Breakeven and profitability

• Total Revenue Impact: The show generates $1.44 billion in revenue over the year (from both new and retained subscribers).
• Breakeven Point: The show cost $100 million to produce. Given the additional revenue generated, the breakeven point is easily surpassed within the first year.
• Profit: After covering the $100 million production cost, Netflix has approximately $1.34 billion in additional revenue.

$1.34 billion in profits from one show. Phew. That already seems like a lot of money in this hypothetical example.

TV Shows are like cash cows for OTT platforms. Sure, not all shows turn out to be blockbusters. But for the ones that do, they milk it further by releasing newer & newer seasons, ‘Behind the Scenes’ (BTS) episodes, Special director’s cuts and whatnot. They are trying to extract every single drop of milk possible. Now this seems like a very obvious thing to do. Makes Sense.

But what intrigues me is how none of these platforms have experimented with a simple idea to milk their popular shows further…

Enter: ‘Character POVs’

If you have ever watched a TV series, you would have observed Parallel storytelling. How the story is told from POVs of multiple characters, at the same time, from one shot to another. Scene changes, character changes, a couple of shots later we come back to the first character and so on…

Now picture this. What if the story of a popular TV series was ‘re-told’ from the POV of one single character? (Think of it like repurposing existing footage, stitching together scenes where the character is present to create a unique, character-driven narrative).

For Example, Imagine the story of Stranger things told completely from the perspective of ‘Eleven’ and nobody else… Or the stories of Mirzapur & Suits told from a perspective of non-protagonist characters such as ‘Sharad Shukla’ or ‘Donna Paulsen’ respectively… Or how about multiple Character POVs from series such as Breaking Bad, Dark, etc.!

And No I’m not talking about Spin-offs where you produce a brand new series altogether based on a character (Eg: Better Call Saul, or Young Sheldon, or Berlin). I’m talking literally taking the same, old existing footage and re-editing it (i.e. stitching it together) to only include shots which have a specific character.

This concept is faintly inspired from what JioCinema offered during IPL 2024. Their app gave their users an option to view the cricket match from various different camera angles. Users can simply switch to whichever camera view they want (like Spider cam view, Batsmen cam view, Stumps cam view, etc.) for the entire match!

Now, hypothetically speaking the numbers seem too lucrative to me. Makes me wonder why has no OTT platform experimented with this before!?

The Economics of ‘Character POVs’

Cost Efficiency: The primary cost of producing a Character POV series lies in editing, narrative restructuring, potential voiceovers, and maybe some minor additional scenes. Let’s say editing costs range from $100,000 to $500,000, depending on the complexity and length of the series. Compared to the millions typically spent on producing a new show, this is a fraction of the cost.

Revenue Potential: Let’s go back to our earlier example of ‘Mystery Manor’. Out of a total of 12 million (10 million retained + 2 million newly acquired) viewers of the show, let’s say 10% of viewers (1.2 million) are interested in watching the Character’s POV. So they pay $10 more to extend their Netflix subscription for another month. Bingo. That’s a bonus $12 Million in Netflix’s pocket from a single POV series. This revenue far exceeds the minimal production cost of it, resulting in a highly profitable venture.

Extended Content Lifecycle: By offering a new take on existing content, OTT platforms can extend the relevance of their shows. This not only retains current subscribers but also entices new ones, providing a fresh incentive to explore the platform’s offerings.

Conclusion

Character POV series represent a cost-effective, engaging way for OTT platforms to breathe new life into existing content. By reimagining narratives through the eyes of individual characters, platforms can deepen audience engagement, extend the lifespan of their shows, and unlock new revenue streams.

There will sure be a bunch of downsides to this such as viewer fatigue from re-edited content, challenges in ensuring narrative coherence. Hence some experimentation is a must.

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Beyond the Surface: Insights & Reflections

[Added 4hrs after posting the article]

I was just having a chat on this topic with my friends, We discussed how this concept is just the beginning. What If we extrapolate it a little further? Imagine Character POVs of shows like ‘Squid Games’ with hundreds of characters! Netflix Interactive kind of a series where you get to select a player and ‘play’ the entire series from his/her lenses.