Once the country came under lockdown, the discussion of a direct digital release is in talks across the circles of trade. Digital giants like Amazon approached several Tollywood producers to release their films directly on OTT as the theatres would continue to remain shut for the next three months. Though this was a good time to release their films and recover their investments, Tollywood producers are quite hesitant.
The real fact is that the OTT deals will not recover the film’s budget. OTT platforms generate revenue majorly through subscription basis and they do not make major money through commercials and other sources. Hence the lockdown digital deals are not record-breaking. The OTT rights just contribute less than 30% of the film’s budget as per the current deals. Most of the film’s recovery is done through the theatrical business. Though players like Aha who are the new entrants are in plans to acquire the rights, they are said to be offering the deals on revenue sharing basis and they are not ready to pay huge for the producers.
OTT release may just excite the audience but not the producers. Most of the Tollywood producers who are in stress are ready to bear it and head for a theatrical release instead of selling the OTT rights and spoil their theatrical market. Telugu actors too are not in a mood to see their films releasing on OTT before their theatrical release.
