The OTT boom reshaped the film industry, offering producers a major revenue stream and altering how films are marketed and monetized. Tamil cinema, like many others, leaned heavily on digital rights, expecting the trend to last.
This led to inflated paychecks for actors, directors, and technicians while traditional revenue sources like satellite and theatrical took a hit. But the landscape has shifted dramatically, and Tamil producers are feeling the squeeze.
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OTT platforms, once eager to shell out big money, have now slashed their budgets. Tamil film analysts report that streaming rates have plummeted by 50-60% compared to two years ago.
Adding to the woes, platforms are now dictating release windows, forcing producers to reshuffle schedules, disrupting distribution and marketing.
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Not just small and medium budget films, even films having big names like Ajith, Dhanush, Suriya, and others are facing this issue.
While Tollywood is also facing setbacks, Tamil and Malayalam cinema seem to be hit the hardest.
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Films are now adjusting release plans based on OTT negotiations rather than prioritizing theatrical runs. But with platforms no longer paying premium rates, this overreliance is proving risky.
For Tamil cinema to regain stability, producers must rethink budgeting and focus on strengthening the theatrical market.
If not, this OTT-driven chaos could further disrupt release plans, making it harder for Kollywood to sustain its dominance.
