OTT Window vs Theatrical Revenue: No Direct Link, Say Industry Voices
According to him, shorter OTT windows have conditioned audiences to skip theatres and wait for digital releases instead.
The ongoing debate around OTT release windows in the Telugu film industry has taken a sharp turn, with contrasting opinions from key stakeholders on whether digital premieres impact theatrical performance.
Veteran filmmaker Gunasekhar, known for blockbusters like Okkadu and Chudalani Vundhi, has advocated for a three-month gap between theatrical release and OTT premieres. According to him, shorter OTT windows have conditioned audiences to skip theatres and wait for digital releases instead.
Speaking at a recent media interaction, Gunasekhar said, “Shorter OTT windows have made audiences comfortable to wait. A uniform three-month gap can help bring them back to theatres.”
His comments come at a crucial time, as discussions continue within the Telugu Film Chamber of Commerce regarding standardized OTT timelines. Current proposals range from eight weeks to three months, with stakeholders attempting to reach a balanced approach.
However, producer Raj Kandukuri disagrees with this view, pointing to the financial pressures faced by producers today.
“Movie-making has become a risky business these days. A producer's recovery options are being reduced by the day,” he said. He added, “Hence OTT money is the primary recovery for producers since he is assured of some returns, while theatrical collections have become secondary, which is unfortunate but true.”
Kanduri also argued, “Audiences are watching a film in the first four weeks if they want to, and hence the OTT screening has nothing to do with the success of a film.'Barring movies of Rajamouli or films like Dhurandhar, which demand a longer theatrical run, which are far and few," he adds
He further highlighted the decline in other revenue streams, saying Hindi dubbing rights have dropped from around Rs 1.5 crore to Rs 30–40 lakh, while other non-theatrical revenues have also fallen, putting producers in a difficult situation.
Meanwhile, internal discussions suggest resistance from producers toward extending OTT windows in Tollywood. A source said, “A top office-bearer in the Telugu Film Chamber of Commerce, who has sold OTT rights for his films till 2028, walked out of the meeting on extending the deadline.” The source added, “Producers are discussing it, but it looks like there will be no change in the OTT window since they are unwilling to give up assured money.”
For now, the current system is likely to continue, with roughly four weeks for South Indian films and eight weeks for Bollywood releases, until a final decision is made by the trade bodies.
