The COVID-19 pandemic completely changed the film business in India. When theatres shut down, OTT platforms like Netflix and Amazon Prime Video stepped in and quickly took control.
They offered prices filmmakers had never seen before. Many films recovered their budgets even before release through digital deals. OTT became the backbone of the industry, reducing risk and encouraging bigger projects. But that party is now over.
OTT platforms have cut spending after not seeing expected returns. Subscriber growth slowed, and content costs became hard to justify. Today, deals are tougher, prices are lower, and conditions are stricter. Even payments for closed deals are getting delayed, causing cash flow issues.
The biggest shift is power.
Earlier, Tollywood producers decided when to make and release films. Now, OTT platforms influence those decisions, setting conditions, deciding release windows, and even whether a project should go ahead.
Many producers now refuse to start a film without locking its OTT deal first. Scripts are pitched at the development stage itself. If a platform agrees, the film begins. If not, it gets shelved.
As a result, many films are stuck. Producers, especially in small and mid-range projects, are avoiding risk. Only films with big stars are somewhat safe.
Deal structures have also changed. Instead of fixed prices, OTT platforms now link payments to box office performance. Some are even exploring pay-per-view models based on actual viewership.
This has removed the earlier cushion. During the pandemic, even weak films got strong OTT deals. That is no longer the case. The impact is clear. Projects are delayed, shelved, or struggling to find buyers. Producers are waiting, and platforms are being highly selective.
This is a market correction.
The OTT boom created easy money, but it was not sustainable. Now, the system is tighter and driven by performance. OTT is no longer a rescue option. It has become a gatekeeper, and for many producers, especially without big stars, getting that approval is now the biggest challenge.
