During the COVID-19 pandemic, OTT platforms gained significant popularity as people could not visit theaters. Due to the increased demand, many producers took advantage of this by selling new films to OTT platforms for high prices. Some films were released directly on these platforms, providing producers with good profits. As a result, producers started increasing their budgets, expecting solid returns from digital rights sales after their theatrical releases.
However, things have changed recently. OTT platforms are no longer offering the same high rates for digital rights. Not all films are being bought by OTT platforms, and the prices offered for those have dropped significantly. Additionally, platforms have imposed several new conditions on producers, leading to frustration, particularly for those who raised their budgets in anticipation of high digital earnings.
OTT platforms also influence film release schedules. The rates they offer vary based on the film’s release date. For instance, movies released during festive seasons like Sankranti tend to receive lower rates because more people prefer watching films in theaters during these periods. This has affected films like Game Changer and Thandel, postponed from Christmas to Sankranti, resulting in a drop in the value of their digital rights.
Despite the lower OTT rates, producers like Sankranti still choose to release films during festive seasons. They hope to compensate for the reduced digital income through solid box office collections during peak movie-watching periods. Although the profits from OTT platforms are lower now, the potential for high earnings in theaters during festivals still makes these release dates attractive to many filmmakers.
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