South Producers Vs Theatre Owners: OTT Release War Heats Up
SIFPA has said that the schedule of a film’s release on OTT platforms lay solely with the producers
Hyderabad: The South Indian film industry is witnessing a major clash between producers and theatre owners over OTT release timelines. At the centre of the issue is a newly formed body, the South Indian Film Producers Association (SIFPA), which brings together leading producers from the Telugu, Tamil, Kannada, and Malayalam industries.
SIFPA has said that the schedule of a film’s release on OTT platforms lies solely with the producers. This comes in direct opposition to theatre owners, who are pushing for an eight-week gap.
Theatre owners argue that this window is essential to protect cinema halls and ensure audiences visit theatres instead of waiting for digital releases. However, producers see this as a restriction that limits their flexibility and impacts revenue streams. In today’s evolving market, OTT deals play a crucial role, especially for films that struggle at the box office.
To address the issue, producers convened a high-level meeting in Hyderabad, where SIFPA was officially launched. The message from the meeting was clear: OTT release timelines cannot be dictated unilaterally by exhibitors.
The producers made it clear that they will not accept any unilateral decisions taken by theatre owners regarding OTT release timelines. They also emphasised that producers should avoid committing to OTT release dates without proper internal discussions and a collective agreement. To safeguard their interests, a joint committee has been established under the South Indian Film Producers Association. Overall, the producers stressed that the industry cannot function effectively if sudden, one-sided rules are imposed by exhibitors.
Producers argue that since they bear the financial risk, they should have the final say. Theatre owners, meanwhile, are focused on sustaining their business model in the face of changing audience behaviour.
The situation also raises practical concerns. If producers gain complete freedom, some films may arrive on OTT within weeks, potentially affecting theatre revenues. On the other hand, rigid rules could hurt smaller films that rely heavily on digital platforms for recovery.
The coming weeks will be crucial. Either both sides find a middle ground, or the standoff could escalate further, impacting film releases, revenues, and theatre operations across South India.
Confirming the development, Prasanna Kumar, honorary general secretary of the Telugu Film Producers Council, said, “It is a new body of producers from across the South, and we had a detailed meeting today about the OTT time gap and how producers have to make major decisions among others.”
