Non-Theatrical Clash: Third Parties Under The Bus

The crash in the non-theatrical rights is causing ripples in the Telugu Film Industry. Many films that are going to begin shooting are halting to reevaluate their budgets and market values. Some films are minimizing their budgets and some are halting the films until the market corrects.

Industry folks expect this phase to last at least six months and that can be longer as well.

The existing deals are also a problem. If such deals are signed by the OTT platforms, they have clauses in the agreement to exit or renegotiate.

But there are films that are purchased by third parties who resell the rights later.

If there are favorable terms in their agreements, they are trying to renegotiate with the producers.

In the case where major installments were paid for a few films, they have no other way but to struggle.

For a mid-range hero’s film with an unsuccessful but talented director’s film, this is already happening.

They will have to hold this project until the market corrects. But by the time it corrects, these projects may become stale and may not fetch good rates.

The Third Parties are not someone with deep pockets, if they can not tide over this crisis, they will perish.

They are expecting the producers to help despite the terms of the agreements. But except for big producers, it is not possible for everyone. Remember the producers are already battling with their own problems.

This break though unintentional is a big opportunity for the industry to correct itself.