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Case Solution for Gulabo Sitabo's OTT Debut Disrupting Traditional Film Distribution

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Uploaded on July 14, 2025
Number of pages 17
Written in 2024/2025
Type Case
Professor(s) Mr travis
Grade A+

gulabo sitabos ott debut
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disrupting traditional film distribution

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GULABO SITABO’S OTT DEBUT: DISRUPTING TRADITIONAL FILM
DISTRIBUTION CASE STUDY SOLUTION

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SYNOPSIS
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In 2020, the Indian film industry witnessed a significant rift between producers and exhibitors, such as
cinema owners and multiplex chains, when the producers of the highly anticipated film Gulabo Sitabo opted
for a direct digital premiere of the film on Amazon Prime Video, thereby bypassing a theatrical release.
The decision angered exhibitors, who viewed over-the-top (OTT) platforms as threats to traditional cinema
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distribution. Concerns arose that other studios would soon follow suit, jeopardizing their businesses.
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Although the producers cited COVID-19-related challenges and the increased popularity of streaming
services as reasons for their decision, exhibitors accused them of being selfish. Exhibitors emphasized their
investments in world-class screens and urged co-operation, threatening retaliatory measures. The rising
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tension brought up a number of questions: How much of a threat were OTT platforms to traditional film
distribution? How could disagreements between producers and traditional distributors be resolved? Might
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The Case Solution Starts From page 6

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ASSIGNMENT QUESTIONS

1. What are the traditional methods of film distribution? Explain the advantages and disadvantages of
existing film distribution channels.
2. What are the advantages and disadvantages of (releasing new movies directly via) OTT platforms?
Explain from both producer and consumer perspectives.
3. How is the movie watching experience different on OTT platforms than in theatres or cinema halls?
4. Which type of distribution, OTT or theatrical, do you believe Gulabo Sitabo would have benefited from
the most?

The Case Solution Starts From page 6

,5. What steps could be taken to overcome the conflict between film producers and exhibitors? Can two
film distribution models—physical and online—coexist, and if so, how?
6. If OTT services continue to grow in popularity, what effect might this have on the film industry’s value
chain?

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ANALYSIS

1. What are the traditional methods of film distribution? Assess the advantages and disadvantages
of existing film distribution channels.
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Traditional film distribution methods include theatrical releases, home videos, television broadcasts,
international sales, and film festivals (see Exhibit 2).
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Advantages of Traditional Film Distribution Channels
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• Broad Reach: Films are available to a vast audience due to their wide distribution via theatrical releases,
home DVDs, and television broadcasts. The theatrical release permits a film to have a wide release and
quickly reach a huge audience.
• Revenue Potential: Significant revenue streams can result from a film’s theatrical premiere. The
greatest benefit of film releases in theatres is the opportunity to increase earnings. A successful opening
is expected to produce massive box office returns. Moreover, if the film becomes a blockbuster, the
producers have the potential to reap even greater revenues.
• Established Channels: Traditional distribution channels have existed for a substantial period of time,

The Case Solution Starts From page 6

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6. If OTT services continue to grow in popularity, what effect might this have on the film industry’s
value chain?
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The production, promotion, distribution, and economics of films are profoundly affected by the increasing
prevalence of OTT services. Some of the effects of include the following:

• Production: The advent of OTT platforms has ushered in a new age known as “binge-watching,” in
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which fans watch many episodes of a television show in a single sitting. The demand for original
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content, such as movies, originating from these channels has surged. Because of this, OTT platforms
are making significant investments in the production of original movies, which is causing a shift in the
way movies are made. These platforms are also more ready to take risks on unconventional and edgier
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material, a trend that has led to a diversification of genres and storytelling techniques.
• Marketing: Because OTT platforms have access to a great deal of data regarding their users, businesses
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, EXHIBIT -1: OTT SERVICE CONVENIENCE DIMENSION

Access Convenience

• Ability to watch film at any time
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Decision Convenience

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Benefit Convenience
• Easy access to film without OTT
Convenience • Additional features (e.g., X)
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•
Dimensions •

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Post-Benefit Convenience
Transaction Convenience
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• Can re-watch at any time
• Easy rental (pay per view)
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•

The Case Solution Starts From page 6

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