For a while now, the stagnated non-theatrical market has been a cause of concern for Telugu film producers. Leading OTT platforms are imposing price correction which essentially means that they are not paying top prices like they used to in the past.
Adding to that, two leading buyers ZEE and Sony had stopped buying new releases in the recent past as they were on the verge of a merger. The two companies were more focused on the merger and put acquisitions on hold. Film producers were also hopeful of the same as they thought the merger will lead to one stronger entity and would go aggressive in buying new films.
But all of a sudden, the merger has fallen through. ZEE and Sony have announced that they are dropping the merger plans due to differences in post-merger managerial structuring. They are no longer in the merging proposition. This banishes the introduction of one strong entrant in the OTT space.
Another thing is that there is anxiety amongst producers so as to when and if Sony and ZEE will return to buying new films after the failed merger plans. The impact of this merger falling through could be felt in the Telugu film industry soon as the lower the number of competitors, the lower the neck-to-neck competition, hence lower monetary offerings from the OTT players.
