The Telugu film industry, or Tollywood as it’s fondly called, is going through some big changes, thanks to the rise of OTT platforms like Amazon Prime, Netflix, and Aha. These streaming services have been a game-changer, giving filmmakers a chance to reach audiences worldwide. But there’s a catch, and it’s a big one. Suniel Narang, a well-known Telugu producer who recently stepped down as President of the Telangana State Film Chamber, just dropped a bombshell about how much control OTT platforms have over when films hit theaters. His story has got everyone in Tollywood talking.
Kubera and the OTT Power Play
In a chat with Gulte Pro, Narang opened up about his upcoming film Kubera. His team was all set for a July theatrical release, but Amazon Prime Video, which snagged the digital rights, had other plans. They pushed for a June 20 release instead. When Narang asked for just two more weeks to get things ready for theaters, Prime Video didn’t budge. Instead, they warned that delaying the release would cost the producers a whopping ₹10 crore cut from their OTT deal. Ouch. Narang had no choice but to go along with it.
“They told us June 20 or they’d slash ₹10 crore from the deal,” Narang said, laying bare how OTT platforms are calling the shots these days. It’s not just about selling digital rights anymore—platforms are dictating release dates and holding producers over a barrel.
How OTT Changed the Game for Tollywood
Let’s rewind a bit. During the pandemic, when theaters were shut, OTT platforms were a lifeline for Tollywood. Films like Colour Photo and Middle Class Melodies found huge audiences online, proving that streaming could be a goldmine for smaller films. Fast forward to now, and theaters are back, but the relationship with OTT platforms has gotten… complicated.
These platforms aren’t just buying rights; they’re picking and choosing films based on star power or buzz. Big films with A-listers like Naga Chaitanya’s Thandel (which scored a ₹45 crore deal with Netflix) or Sankranthiki Vasthunam (₹27 crore from Zee5) are cashing in. But smaller films? They’re struggling to get noticed by OTT buyers, even after hitting theaters. And when a deal does come through, it often comes with strings—like tight release schedules or even input on casting.
The Money Squeeze
The financial side of this is no joke. Big OTT deals can cover a chunk of a film’s budget, but the pressure to meet platform demands can mess with a movie’s theatrical run. Rushing a release to meet an OTT deadline means less time for marketing or snagging prime theater slots. Plus, the short gap between theater and OTT releases—sometimes just four weeks—makes audiences think, “Why go to the theater when I can watch it at home soon?”
The Telugu Film Chamber tried to push for an eight-week theatrical window to give films a fighting chance in cinemas, but that rule’s been more of a suggestion than a hard line. Producers, especially those worried about losses, often jump at early OTT deals to cover their costs.
What’s the Industry Saying?
Narang’s not alone in feeling the heat. His decision to step down from the Film Chamber was partly tied to frustrations over how much control external players like OTT platforms, Qube Cinema, and BookMyShow have over the industry. Other producers are nodding along, saying the terms from streaming giants are squeezing their creative and financial freedom.
Sai Rajesh, the director behind the 2023 hit Baby, pointed out that building buzz before a film’s release is key to landing a good OTT deal. “If your trailers and teasers get people excited, platforms will come knocking,” he said. But he also admitted that smaller filmmakers without big names in their cast are often left out in the cold.
Some in Tollywood are calling for change—like stricter rules on OTT release windows or better teamwork with platforms. There’s also talk about cracking down on piracy, since HD leaks before a film’s release can tank theater turnout and push producers to lean even harder on OTT deals.
Where Do We Go from Here?
OTT platforms are a blessing and a curse for Tollywood. They bring in cash and global eyeballs, but their tight grip on release schedules is making producers sweat. Narang’s story about Kubera is a wake-up call. If Tollywood wants to keep its spark, it’ll need to find a way to balance the power between theaters and streaming giants. Maybe it’s time for the industry to push back a bit and take control of its own story.