Epaper
There is currently a major discussion between film producers and theatre exhibitors about keeping an eight week gap before movies arrive on OTT platforms.
Most producers have reportedly agreed to this idea because theatre owners believe it can help improve box office collections and encourage more people to visit cinemas.
However, two leading producers are strongly against the proposal. These producers are said to have the highest number of films releasing this year under their banners.
One producer reportedly explained his business model by saying that one of his films made on a budget of Rs 20 crore already recovered a major part of its cost through OTT and music rights.
According to him, he received Rs 9 crore from OTT, Rs 6 crore from Overseas and Rs 3 crore from music rights, reducing the financial risk significantly.
The producer also stated that he would even allow streaming within two weeks instead of present 4 weeks window, had OTT platform paid Rs 2 crore extra.
His argument is that audiences are not coming to theatres in big numbers after the opening weekend, especially from Monday onward.
Both producers strongly feel that OTT platforms are currently supporting producers more than theatres are in today’s market.
It is obvious that if the eight week OTT window is enforced, OTT platforms may reduce their investments in films, which could heavily affect busy producers with multiple projects in hand.
The producers who are less active or do not have many films lined up are speaking more emotionally about the concerns of theatre exhibitors.
However, the bigger and busier producers are approaching the issue from a practical business perspective.
