No more early Telugu releases on OTT? 8-week rule to come!

OTT giants like Netflix and Amazon Prime Video have drastically reduced their spending on acquiring Telugu films. Even big-ticket movies featuring top stars are finding it difficult to close lucrative digital deals.

There was a time when Prabhas’s films reportedly fetched over Rs 200 crore from OTT platforms. Allu Arjun set a benchmark when “Pushpa 2” sealed a massive Rs 275 crore digital deal. However, the scenario has now changed. Even a high-profile film like “Dhurandhar” could reportedly secure only around Rs 290 crore from Netflix, indicating a clear shift in OTT valuation patterns.

Mid-range and small films without big stars are facing an even tougher situation, with digital platforms offering significantly lower amounts. At the same time, the theatrical market is also underperforming. Recent releases such as Vishwak Sen’s “Funky”, Suhas’s “Hey Balwanth”, and “Couple Friendly” failed to register strong openings at the box office. Though “Couple Friendly” showed some improvement later, its initial collections were underwhelming.

Amid this dual pressure from weak theatrical revenues and shrinking OTT deals, the Telugu film industry has proposed reinstating a mandatory eight-week OTT window. The proposal was discussed at the Telugu Film Chamber’s Executive Committee meeting today. If implemented, Telugu films will not be allowed to premiere on OTT platforms before completing eight weeks in theaters.

Interestingly, such a rule existed earlier. However, it was gradually diluted when several active producers pushed for a shorter four-week window. Whether the industry will now strictly enforce the eight-week rule remains to be seen.