OTT Shock-waves Shaking Telugu Film Industry

Recent developments suggest that OTT platforms are causing seismic shifts in the Telugu film industry, with reports hinting at significant disruptions. The abrupt halting of a major film today underscores the impact of pending OTT deals and the staggering remunerations demanded by leading actors.

A noteworthy aspect is the growing valuation of movies, fueled by the sale of Hindi dubbing rights and OTT streaming rights. Despite a film’s box office share being in the range of ₹10-20 crores, non-theatrical rights easily contribute ₹30 crores or more. This windfall has allowed producers to anticipate substantial profits, prompting even actors with recent flops to escalate their remuneration demands. In the past, when theatrical revenue reached only 20 crores, a hero’s remuneration might have been ₹5 crores. However, in today’s scenario, actors in this category are commanding fees of ₹15 crores.

The dilemma arises as OTT platforms, once willing to pay hefty sums for non-theatrical rights, are now showing reluctance towards routine masala flicks. This shift is causing a ripple effect, with production houses urging heroes to reconsider their pay, while the actors remain steadfast in their demands. This standoff has led to the cancellation of several films, delays in project timelines, and the neglect of certain coveted collaborations.

With OTTs unwilling to make substantial payouts, production houses are pressuring heroes to reduce their remuneration. However, actors seem unwilling to compromise, potentially pushing them to consider producing their own films to secure their financial interests. The surprising decisions by some top-paying digital streaming companies have undoubtedly sent shockwaves throughout the industry.