From bidding wars to box office returns: How streamers now price films

Recent trade chatter suggests that Netflix has agreed to pay ₹130cr approx for the streaming rights of Dhurandhar , covering both parts of the franchise. A few years ago, that number may have raised eyebrows for being too low. Back then, Netflix, Amazon Prime Video and Disney+ Hotstar were cutting much bigger cheques and asking far fewer questions.

According to trade analysts, film acquisitions have swung through multiple boom-and-bust cycles since the pandemic. A trade business analyst says, “What the OTT industry is seeing now isn’t exactly a correction, but equilibrium. And ₹130cr is a huge amount in the current phase of streaming film acquisitions.”

We take a look at what goes on behind streaming platforms calling the shots on film pricing and how the system has changed.

‘Streaming platforms have tied acquisition price with theatrical performance’

During the pandemic, big titles sparked bidding During the pandemic, big titles sparked bidding wars among OTT platforms, which is not the case at wars among OTT platforms, which is not the case at present. Trade experts estimate that OTT rates for present. Trade experts estimate that OTT rates for big-budget films have fallen, with platforms unwilling big-budget films have fallen, with platforms unwilling to pay premium pricing when theatrical performance is to pay premium pricing when theatrical performance is uncertain. uncertain.

Post-pandemic, several films for which streaming Post-pandemic, several films for which streaming platforms paid a huge sum delivered neither box office platforms paid a huge sum delivered neither box office returns nor streaming traction. Platforms took note. returns nor streaming traction. Platforms took note.

Film business analyst Girish Johar says, "In the last Film business analyst Girish Johar says, "In the last two years, platforms discovered that acquiring a bigtwo years, platforms discovered that acquiring a bigstar film – no matter how expensive – doesn't necessarily star film – no matter how expensive – doesn't necessarily translate into new subscribers. At the same time, box translate into new subscribers. At the same time, box office collections have also faltered, with several highoffice collections have also faltered, with several highprofile releases underperforming across languages. profile releases underperforming across languages. What was failing in cinemas, platforms realised, was What was failing in cinemas, platforms realised, was also failing on their apps. Hence, streaming services also failing on their apps. Hence, streaming services revised the rules of acquisition, linking the price of revised the rules of acquisition, linking the price of digital rights directly to theatrical performance." digital rights directly to theatrical performance."

A film that worked in theatres, platforms reasoned, A film that worked in theatres, platforms reasoned, had already cleared the hardest test – audience had already cleared the hardest test – audience acceptance. Paying more for such a title was not a risk acceptance. Paying more for such a title was not a risk but a calculated bet, say OTT executives. but a calculated bet, say OTT executives.

The change in film acquisition by streaming platforms has changed since pandemic

Trade analysts say that during the pandemic, streaming services were in a kind of gold-rush mentality. Cinemas were shuttered, audiences were captive at home, and platforms were under pressure – from investors and global headquarters alike – to grow quickly. "Producers, sensing leverage, began demanding prices that were two or three times the perceived value of their films. Platforms not only agreed, but in several cases, bidding wars emerged around major releases,” says Girish Johar. As audiences returned to theatres, subscriber growth slowed, and engagement dipped as box-office flops flooded OTT platforms.

Factors that determine a film’s acquisition price

Under the new model, negotiations have become more measured and more conditional. Producers open talks by asking for 60 to 80% of their production cost to sell streaming rights. Whatthey often receive instead is a base price closer to 40%, with additional payouts tied to box office. Trade analysts say, “If a film performs well theatrically, the final price rises in slabs – 5-10% at a time for all languages.”

For context, satellite television rights, which were once the backbone of nontheatrical revenue, now fetch barely 10% of a film’s budget.Get the latest entertainment updates from the Times of India, along with the latest Hindi movies, upcoming Hindi movies in 2026 , and Telugu movies.”