OTT’s New Rules Pressure Producers; All Eyes on Akhanda 2’s Netflix Deal

Despite the nationwide craze generated by blockbusters like Baahubali, RRR, and Pushpa, the Telugu film industry is not in a comfortable state. Hundreds of films release every year, yet only a handful manage to make profits.

OTT platforms, which once served as a safety net for producers, have now changed their business model. With the introduction of new rules, producers are facing added pressure. If a film performs poorly in theatres, OTTs reduce the agreed payment by 25 percent. If it performs exceptionally well, they increase it by 25 percent.

Balakrishna’s ‘Akhanda 2’ is expected to be the first big Telugu film to follow this new Netflix model.

Meanwhile, films are landing on OTT within just four weeks of their theatrical release, causing a steep drop in box-office collections. As a result, many movies are likely to receive reduced payments from OTT platforms.

Now, all eyes are on ‘Akhanda 2’. Whether Netflix will pay more or less will depend entirely on its theatrical performance.