OTT Streaming Sites and New Rules Resulting A Risk for Producers

The Ott trend has increased significantly after Covid, with films being released on Ott platforms within a few days of their theatrical release. Producers are making deals with Otts, acquiring digital rights at huge prices, and getting revenue even before release. However, new rules are being implemented, and Ott revenue is likely to be affected.

Leading Ott companies are calculating digital deals based on theatrical collections, paying the agreed amount only if the film is a hit in theaters. If the results differ, the price will be reduced. This new rule has become a topic of discussion in Tollywood, putting producers at double risk. If the theatrical run is not good, the Ott money will also decrease.

Netflix has already implemented this strategy, cutting the price of a recently released film that didn't perform as expected in theaters. The shift in strategy is attributed to the changing landscape of the Ott industry, with platforms focusing on profitability and revenue optimization.

The Indian Ott market is projected to grow significantly, with a focus on regional content and monetization strategies. Producers are now facing uncertainty, and the industry is adapting to the new rules and regulations.