The Telugu Film Producers Council (TFPC) has decided to stream movies on OTT 50 days after their release in theaters, after realizing the negative impact of the Over the Top (OTT) platform on movie theaters. The decision will affect films that sign contracts with OTT companies after July 1.
With the closure of single screens and multiplexes during the epidemic, OTT became an honor for film producers. After returning to normal with favorable conditions, movie theaters reopened to moviegoers. In addition to the theater business, producers used to earn money through satellite rights to their films. In recent times, producers have been earning extra money by selling digital (OTT) rights and dubbing rights to their films.
But the situation has changed and turned out to be a nightmare for OTT producers. With skyrocketing movie ticket prices, moviegoers are eagerly awaiting the movie on the OTT platform instead of the traditional big screen. With the habit of watching movies on OTT during Kavid, people now prefer to watch movies in theaters if the content of the movie is good. If a film speaks negatively on the first day of its release in theaters, middle-class audiences stop watching it on the big screen and wait with the hope that two to three weeks after its release in theaters. They will see the same on OTT.
With the quick recovery of investment with OTT streaming of their films, most producers are entering into agreements with OTT companies on the condition that the film be streamed in theaters three weeks after its release. But moviegoers think differently that instead of spending Rs 300 to watch a movie in a theater, one can get an almost annual subscription to the OTT platform. With the decline in population, the very existence of theaters was in question.
Movies like RRR, and KGF2 have made huge profits with the increase in ticket prices. But the same high price has had a negative effect on Chiranjeevi starrer Acharya. Mahesh Babu starrer Sarkarwari Pata Film has recorded a loss of Rs 150 million to Rs 200 million with the increase in ticket prices. Venkatesh and Vortex Starr F3 also failed to make a profit at the box office.
With the above in mind, TFPC has made an important decision to stream movies on OTT 50 days after their theatrical release. One has to wait and see if Telugu film producers are bound by the decision of their council.
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