The digital players have got a great grip to do business in India. After they offered huge prices for the OTT deals for Indian films, they have slashed down the prices and they are dictating rules. They are finalizing the release dates, imposing new rules and clauses before closing the digital deals. Now, most of them are listening to the script before finalizing the deal. They have decided to introduce a new rule which is quite shocking for the producers.
The final digital deal will depend on the theatrical performance of the film. The producers who relied mostly on the digital deals to recover the investments have shifted back to theatrical revenue. Now, if the film fails to fare well in theatres, the makers will struggle to recover the investments. The digital players will play the complete commitment only if the film has a great theatrical run. Else, they would slash down the digital deal and the financial stress would be mounted on the producers. Several young producers have agreed about the mounting pressure from the digital players.
There is no option left except to accept the new rules from the digital players for now. The producers have to make successful films to earn profits from all the sources. The dependency on the theatrical revenue for the producer is back now.
