Radhe Collection Report and Understanding the OTT Economics

Radhe Collection Report: Radhe released on Zee 5 and according the reports from the platform the film has created history in the OTT segment.

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Radhe Collection Report: Radhe released on Zee 5 and according the reports from the platform the film has created history in the OTT segment.

Yes the film has surely created history but are the figures exaggerated ? It is very difficult to gauge this at this moment as all the data in case of OTT remains in few hands but we can surely take a guess.

Before we actually get into the collections of Radhe we need to understand Zee5 as a platform and how many users does it have.

Radhe Collection Report: Zee 5 Analytics

Zee5 as a platform has seen tremendous improvement in their traffic share and gets more than 20 million visits on their website per month. (Average of last 6 months). May, 2021 figures are not out yet and will be out around 10th June, 2021. 

MonthTotal VisitsTotal Visits in Millions
Nov-20   24,500,000                                   24.50
Dec-20   23,100,000                                   23.10
Jan-21   21,900,000                                   21.90
Feb-21   18,400,000                                   18.40
Mar-21   22,100,000                                   22.10
Apr-21   21,800,000                                   21.80

 

Radhe Collection Report and Understanding the OTT Economics

Out of this 21.8 million visits in April 2021, 71.65% visits were direct which means that they are the captive audience of the platform and comes directly on the platform. Which makes it 15.62 million direct visits on the platform.

Please note that visits does not equal to a user. A user can have multiple visits on the platform during the course of the month.

For example when you go to Youtube and use your google account you are counted as one user. But suppose if you open Youtube 5 times a day either via mobile or their desktop website then it makes the number of total visits 5 for 1 user. Again visits are based on sessions and sessions can have a time out set at individual website level.

For example if a website has defined its sessions time as 30 minutes and you watch a film on that platform for 2 hours that it will be counted as 4 sessions or 4 views on that website.

Radhe Collection Report:

Now according to Zee 5 Radhe has garnered 4.2 Million views on its first day.

Radhe Collection Report and Understanding the OTT Economics
Radhe Collection Report.

Now people have directly calculated each view as a paying user however that is not the reality and showing collections of 105 Crores on Zee 5 Alone.

In reality the views being marketed by Zee 5 consists of:

  1. Multiple Views to the film.
  2. People who actually went to that page but did not pay.
  3. The session effect as mentioned in the above briefing.

Now, let assume that the information given by Zee 5 is accurate. According to the consumer behaviour while watching a movie online each user actually lands 4-5 views for multiple reasons. Even if consider it to be at 4 views per user the real users who paid for the movie would be 1.05 Million users which is huge by any benchmark.

But the impression that users are getting is way more manipulated than the reality. If Radhe had a normal theatre release it would need to earn atleast Rs. 250 Crores to be a hit at the box office.

But in this case the the best case scenario of collections for 1st day is as follows:

  1. Total Views: 4.2 Million
  2. Total Paying Users: 1.05 Million
  3. Radhe’s Total Revenue per Paying User: Rs. 249
  4. Radhe’s Total Revenue on Zee 5: Rs. 26.15 Crores.

Please note if we take Zee 5’s claim on face value and consider the best case scenario, the above calculation holds true. However any expert from the field will tell you that collections are lesser than Rs. 18 crores on day 1 which means that if film does not show tremendous improvement by weekend that it will be very tough for the film to break even.

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