All
management professionals talk about the famous 80:20 principle or the Pareto
Law, where the focus is on serving the 20% of customers who give 80% of the
business. The usual assumption? Leave the remaining 80% of the customers alone or
serve them at a minimal level.
But what if
the story could be flipped? What if we could fit square pegs into round holes
by thinking differently? Years ago, Dr. Kota my ex-colleague, dear friend, my research
scholar, and now B-School professor gifted me a brilliant book – The Long
Tail: Why the Future of Business Is Selling Less of More written Chris Anderson.
Dr. Kota,
like me, loves to read, and this book was a true eye-opener. It challenges our
default way of thinking. Chris persuasively
argues that even though the market is cluttered with 80% customers the market
size is still 20%. And the beauty is that not many competitors in that market
and there is less focus too. companies can operate in stealth or under the radar
mode. Amazon and Netflix are perfect examples, they thrive by
serving niche markets with vast selections, catering to diverse tastes that the
mainstream ignores.
The
Indian Cinema Parallel: Take Indian cinema. Almost 99% of movies won’t cross ₹10 crores in theatrical
business. Yet, 1,500 to 2,000 films are made every year. Can the script be
flipped? Aamir Khan seems to think so. His film Sitaare Zameen Par
reportedly did a solid ₹293 crores at the box
office. But here’s the twist – Aamir refused to sell
the OTT rights to the big streaming platforms.
Why?
Because while Indian cinema is widely watched, only 2–3% of India’s 1.4
billion people go to theatres. In comparison, a staggering 491 million
people in India are actively engaging with YouTube content. That means
theatrical releases are the long tail of the real market!
Beating
the OTT Game: OTT
platforms usually operate in two ways – they either buy the film outright or
stream it on a pay-per-view basis. But the real viewership numbers are murky.
They only publicize their “top 10” lists, and their algorithms are laughable.
Netflix,
for instance, counts a two-minute watch as having “watched” a movie. By
that logic, I “watched” at least 730 movies last year (two movies per day)! And
if a film underperforms, the data vanishes into a digital Fort Knox. Aamir Khan
was done with these games. He announced he wouldn’t stream his movie on any OTT
platform. Instead, he went direct-to-audience: pay-per-view on YouTube at ₹100 for multiple views
within 48 hours.
Let us do
some back of the envelope calculations. Even if five people watched together,
that’s just ₹20 a head cheaper than a
half-litre water bottle in a multiplex.
The Math
That Changes Everything
Let’s
assume only 1% of the 491 million Indian YouTube audience watched the
film, 49.1 lakh views × Rs 100 = Rs 49 crores.
If 5%
watched that would be Rs 245 crores , almost the same as the theatrical
gross, but with far higher margins.
Aamir
pushed the envelope further, from 15th to 17th August, he is offering
the film at Rs 50. If 10% of that YouTube audience
watches at this price (4.91 crores people), that’s another Rs 245 crores. Add the two figures and
you’re looking at ₹500 crores, double the
theatrical revenue and likely with almost
100% margins.
The
Takeaway: Don’t just be a follower.
Be an innovator. Be a disruptor. Chart your own path and become the role model
others follow. Aamir Khan’s move is not just about selling a movie
differently – it’s a masterclass in turning the long tail into the main act.
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