Producers To Share OTT Revenue To Theaters?

The theatrical industry has been going through ebs and flows for the past two years, largely due to Covid and its aftereffects on the theatrical market. Producers and distributors have been trying to revive the same but the OTT aspect has been eating into the same with a section of audience inclined towards waiting for OTT release rather than stepping out to watch films in theaters.

In this context, theaters owners in Tamil Nadu have come up with a list of requests for producers.

The first request is obviously to delay the OTT release of new theatrical releases by at least 8 weeks. And also, advertising of the OTT release of these films should be done at least 4 weeks post the theatrical release.

The last request is the most interesting one as theater managements have asked for a share in OTT revenue of films. They have mentioned that producers who make films for theatrical release and later make money through OTT avenue should share the money with the theatrical industry.

This sure is a seemingly strange request as it would be tough for the producer to share the OTT revenue, which is not as big as theatrical revenue, with the enormous theatrical industry. It has to be seen how producers will settle these requests now.