The current pandemic has deeply affected the financial statuses of one and all. Even with the films, there is a paradigm shift from theatres and cinema halls, to online digital platform release. While several Bollywood films are releasing on the OTT platform, the film trade guru Komal Nahta reveals if this is indeed beneficial for producers or not?
Komal Nahta was quoted saying, “When the cinemas shut down, the OTT platform extended their hand and told the producers that they would pay an extra amount over the amount that they have already promised and the producers should release the film on their platform as the cinemas are shut. The producers now got a new way to liquidate their funds that were stuck during the lockdown. If they would wait for the cinemas to reopen, a monthly interest would have been charged and as the opening of the cinema is extremely doubtful in the near future. Even if the cinemas reopen will the public really come to the theatres to see the film?”
Nahta further mentioned, “The first move was made by the film ‘Gulabo Sitabo’. This was the first film to release on Amazon Prime Video. Looking at this, even the other producers started releasing their films and as of now, there are 18 to 20 films that have already been released or are committed on various platforms. Apart from that, there are 5-7 more films whose negotiations are still going on. This is definitely making the producers happy as their funds are getting liquidated but along with that the cinema owners are definitely unhappy.”
Spilling beans on whether producers are making money on OTT platform, Komal said, “If you are wondering whether the premiere on an OTT platform is beneficial and profitable to the producers then here is what you need to know. Say for example, before the lockdown the streaming rights are finalised for 500 million on the same side just for the premiere, the base amount will be 100-150 million more, so it will be almost 20- 85% more profit but taking into consideration that the film is not releasing in the cinema.”