Why is direct OTT release not ideal for big films?

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After the country is shattered with coronavirus outbreak, India headed for a lockdown. There are several speculations that the big-budget films are heading for a direct OTT release instead of a theatrical release. There are reports that OTT giants offered hefty prices for the OTT deals but most of the figures are fake. OTT platforms operate on a subscription basis and not on revenue sharing basis. Hence shelling out huge money for the digital rights would not leave them in huge profits and these deals are not ideal for them.

When it comes to small films, the deals would be decent as they can acquire the rights for decent prices. Right from Bollywood to Tollywood, there are several speculations and the filmmakers had to trash them as rumors. As of now, Nishabdham is the only film from Telugu cinema which is in talks for digital release among decent budget films. The Centre is in plans to announce relief for theatres but Tollywood producers are not ready to release their films in this crisis and incur losses.

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