OTT platforms:
The film industry is gradually moving into the hands of OTT platforms. These platforms are now influencing even movie release dates. Production houses, expecting a fixed amount from OTT deals, are increasingly agreeing to whatever terms the platforms set. Many producers feel fortunate just to have their films acquired by OTT platforms, and have grown accustomed to accepting their conditions.
Before purchasing a film, OTT companies are setting various conditions. They first watch the film—if they like it, they buy it; otherwise, they reject it. Even after buying, they impose certain terms. Big-budget or high-hype films are given a base price, and if the movie performs well, an additional 20–25% is paid. This is already in practice.
For smaller films, the price is being fixed after the movie releases, depending on its performance.
Now, a new model is being applied to mid-range films. After the theatrical release, OTT platforms are offering 50% of the movie’s box office collections. For example, if a film earns 100 crores at the box office, the OTT platform would pay 50 crores.
This plan sounds promising. If the movie performs well and earns strong collections, the OTT deal can bring in significant revenue. However, the key issue is how the actual box office collections are calculated. Can these figures be trusted? The numbers shown on posters often differ from the real collections. It remains interesting to see how OTT platforms will determine these figures.
The reason OTT pricing is being linked to box office collections is that producers often have no choice but to settle for the amounts offered by OTT platforms. It remains to be seen how producers will respond to this new approach.
