TN Theaters Demand vs OTT: Pointless & Impractical?

The Tamil Nadu Theatres & Multiplexes Association has placed three key demands before the state government, aiming to ensure the survival and growth of the exhibition sector.

With OTT platforms gaining dominance and operational costs rising, theatre owners believe these changes are crucial to sustaining footfalls.

1. Extend Theatrical Window for OTT Releases

Currently, Tamil films can land on OTT platforms just 28 days after their theatrical release. The association is pushing to extend this window to 56 days, arguing that quick digital premieres are hurting box office collections.

Many viewers, especially those who prefer home viewing, skip theatres and wait for the OTT release.

However, the challenge is that when superstar films featuring Rajinikanth, Vijay, or Ajith are arriving on OTT within four weeks, smaller films won’t have the luxury of waiting.

Producers struggling to recover costs in theatres can’t afford to reject lucrative OTT deals. So as of now this demand seems impractical.

2. Allow Sports & Entertainment Screenings in Theatres

Theatres are requesting permission to screen live sports events like IPL matches and other entertainment programs. This move could open a new revenue stream, especially during dry periods when no major film releases are scheduled.

IPL screenings in theatres have been successful before, and theatre owners want to capitalize on cricket’s massive fan following to fill seats.

3. Removal of Local Body Entertainment Tax (LBET)

LBET has been a longstanding financial burden on theatre owners and audiences, inflating ticket prices and driving potential viewers away.

The association argues that removing this tax would make ticket prices more competitive and bring more people back to cinemas.

Now, all eyes are on the Tamil Nadu government. Will they intervene to help theatres compete with OTT and bring audiences back to the big screen? The industry is waiting for an answer.