After realising the negative impact of the Over The Top (OTT) platform on the footfall to the movie theatres, the Telugu Films Producers Council (TFPC) has taken a decision to stream the movies on OTT 50 days after the theatrical release of the films. The decision will impact the movies which will make agreements with the OTT companies from the first of July onwards.
With the shutdown of the single screens and multiplexes during the Covid pandemic period, the OTT became a boon to the movie producers. After back to normalcy with the favourable conditions, the movie theatres reopened for the moviegoers. Earlier the producers used to get income through satellite rights to their movies apart from the theatrical business. In recent times, the producers have been getting additional income by selling digital (OTT) rights and dubbing rights of their movies.
But the situation has changed and the OTT turned out to be a nightmare for the producers. With the skyrocketing prices of movie tickets, moviegoers have been waiting eagerly to watch the movie on the OTT platform than on the traditional big screen. With the habit of watching the movies on the OTT during the Covid time, now the people preferred to watch movies in theatres if the content of the movie is good. If any movie gets negative talk on the first day of its theatrical release, the audience from the middle class stops watching it on the big screen and waits with the hope of watching the same on the OTT after two to three weeks from its theatrical release.
With the early recovery of the investment with the streaming of their movies on the OTT, most of the producers have been making agreements with the OTT companies with the condition of streaming the movie three weeks after its theatrical release. But the moviegoers think in a different way that instead of spending Rs 300 to watch a movie in the theatre, one can get almost the annual subscription of the OTT platform. With the decrease in footfalls, the very existence of the theatres was in question.
Movies like RRR, and KGF2 have reaped huge profits with the increase in ticket prices. But the same high price has shown a negative impact on Chiranjeevi starrer Acharya. Mahesh Babu starrer Sarkaruvaari Paata movie registered a loss ranging from Rs.15 crore to Rs.20 crore with the rise in the ticket price. Venkatesh and Varuntej starrer F3 was also unable to collect profits from the box office.
By keeping the above things in mind, the TFPC has taken a key decision to stream the upcoming movies on the OTT 50 days after the theatrical release. One has to wait and watch whether the Telugu film producers are bound to the decision taken by their council.
