In the past few months, several Telugu film producers have experienced a downturn in their OTT revenues. Numerous films that would have hit the screens in 2023 have had to be postponed because their OTT deals remain in limbo.
Dil Raju, appearing in a roundtable discussion, said that OTT platforms are buying fewer films these days. There was a time when Netflix, Amazon Prime, Zee5 and others used to approach production houses, learn about their release calendars and buy all films. That's not the case anymore. If Mythri Movie Makers is making five films, the platforms are buying only two or three of them. The rest remain unsold.
In 2020, 2021 and 2022, dozens and dozens of movies were launched in the hope of earning revenues from OTT deals. In mid-2023, the scenario changed. OTT platforms became economical and stopped buying out movies like before.
Dil Raju cautioned his fellow producers, saying that non-theatrical revenue streams (mainly OTT) can no longer be taken for granted. "If you want to be in a sweet spot, ensure that your theatrical revenues are good," he added.
