OTT Fair Play

In recent months, big movies like Salaar and Kalki 2898 AD have struggled to strike deals with online streaming platforms. Even major Hindi and Telugu films aren’t attracting platforms as they used to.

The rates for such big-budget films have dropped by 20-30%, and platforms are no longer eager to buy movies indefinitely. They’re less excited about big-star movies now, as many of them failed to bring in subscribers despite high acquisition costs.

Now, platforms prefer to tie film prices to their box office success, similar to smaller movies.

While some post-theatrical release acquisitions have worked for streaming platforms, not all have been successful in getting them new subscribers.

The pandemic has affected big-budget releases like Fighter, Ganapath, and Adipurush, leading OTT platforms to rethink their strategies. Revenue generation and customer acquisition are not meeting expectations.

Negotiations between producers and services now often involve a base price with additional payments linked to box office performance. Services are also limiting rights acquisitions to shorter periods.

India’s OTT market is shifting towards profitability rather than just growth, according to experts.