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Bollywood Producers Bleed as OTT Platforms Slash Prices by 50%
30 Oct
Summary
- OTT platforms demand box office audits, pay less for underperforming films
- Producers lose satellite rights, face 1-year deals instead of 3-5 years
- OTTs require producers to bear risks of controversies after digital premieres
The COVID-19 pandemic in 2020 initially proved a boon for the OTT industry, as streaming platforms lured filmmakers with lucrative deals to skip theatrical releases. However, this golden period was short-lived. As of October 2025, the tables have turned, with OTT platforms tightening their purse strings and leaving Bollywood producers bleeding.
Two key developments have reshaped the landscape. First, the theatrical business has gradually recovered, reducing the OTTs' leverage. Second, the platforms realized that paying premium prices for films was not yielding the expected dividends. They have now started demanding box office audits to determine the digital acquisition price, slashing rates by nearly 50% for underperforming films.
Furthermore, the OTT giants have shifted to offering only 1-year deals, as opposed to the previous 3-5 year contracts. This has further depressed the revenue for producers, who now have to renegotiate rights more frequently. The platforms also require producers to bear the risks if a film faces controversies after its digital premiere.
Compounding the woes, the once-lucrative satellite rights market has been decimated, as OTTs prioritize digital exclusivity. Producers are now left with shrinking profit margins, forced to rely on strong box office performance to stay afloat.
Despite the challenges, industry experts remain optimistic that Bollywood will find a way to adapt, as it has done in the past when facing disruptions like the rise of multiplexes and the COVID-19 pandemic.
