With the number of films under production increasing every year, the digital platforms have turned selective and they are not ready to buy every film. With a steep decline in the satellite rights and the Hindi deals, the Tollywood producers have to rely majorly on the digital streaming rights to recover their major investment. After the decline in the other deals, the digital platforms are imposing new rules and they are dictating the release dates of many films. The new rule that is shocking the producers is that the digital giants are calculating the digital deals based on the theatrical revenues.

The digital giants are inking deals with producers to pay the quoted amounts only after the film does a considerable business in theatres. If the film ends up as a flop in theatres, the digital price will have a cut. A top production house has sold off the digital rights of the recent release of a young hero’s film on a similar deal with Netflix. With the film’s poor performance in theatres, Netflix will slash down the price as mentioned in the agreement. The producer will now get close to 50 percent of the quoted amount which is clearly mentioned in the agreement.

The digital giants are imposing such new rules and the digital deals in the future will depend on the final theatrical performance of the film. This is a new headache for Indian producers.