Big Move or Risky Bet?Can South exhibitors' push for 8-week OTT gap save the big screen?

The long-running debate over extending the OTT release window has once again come into focus. Recently, exhibitors from all five South Indian states met and, in principle, proposed a standardised eight-week theatrical window before films hit OTT platforms. For exhibitors, the intent is clear; it’s to bring audiences back to cinemas. While the practical implementation of this proposal is yet to be finalised, we speak to industry experts to understand their perspectives on the move.

‘OTT window needs a united South call’

Producer and distributor G Dhananjheyan believes all South industries should reach a consensus on the matter. "The Tamil Film Producers Council, along with the Tamil Film Active Producers Association, wanted to consult other language film chambers to arrive at a common view on this matter. The Tamil industry cannot unilaterally make such a decision, given that OTTs currently purchase all four South Indian languages as a package. Once all South industries come to a consensus, the OTT window and the modus operandi to implement it with timelines will be communicated to the theatre owners' and distributors’ association," he shares.

‘Small and mid-budget films may gain from extended OTT window’

KL Damodar Prasad, president of the Telugu Film Chamber of Commerce (TFCC), believes the move could particularly benefit mid-range and smaller films. "Big-star films usually draw audiences due to their fan base and scale, but mid-budget and smaller films are more affected by declining footfall in theatres. OTT platforms are no longer acquiring such films as actively as they did during the pandemic. As a result, these films now depend more on theatrical success to survive. If implemented, the new approach could help improve theatre footfall and give mid-range and small films a better chance at the box office."




Uneven OTT gains and falling footfalls

Sumesh Joseph, secretary, Film Exhibitors United Organisation of Kerala (FEUOK), points out that OTT gains have not trickled down evenly. "No producer in the Malayalam industry has truly benefited from OTT so far. The major gains are going to actors, who now take a significant share of film revenue instead of fixed remuneration. Recent revenue-sharing demands, like the 60-40 model proposed for Patriot in its initial weeks, were outright rejected. This step is necessary – exhibitors are barely surviving."

Theatre vs OTT: Value vs convenience

Highlighting the value proposition of the theatrical experience, Suniel Narang states, "People easily spend ₹1,000-₹1,500 at a restaurant for half an hour, but a theatre ticket costs around ₹200 and offers three hours of air-conditioned entertainment. Yet theatres remain empty because audiences prefer waiting for OTT releases. If the OTT window is extended, it will naturally encourage more people to return to theatres and help films, especially quality films that take time to find their audience, grow through word-of-mouth and lead to repeat viewings."

42-day OTT window promise not being honoured, say exhibitors

Sumesh says the lack of enforcement around existing agreements has hurt theatre owners. "The lack of a legal framework has disrupted the industry’s balance. Producers in Kerala file an affidavit with the Kerala Film Chamber committing to a 42-day window before OTT release, yet most films premiere online within 30 days, undermining theatres."

It all comes down to math, argue producers

As exhibitors push for a longer theatrical run, producers remain cautious about the economics. Producer Sameer Bharat Ram states, "It'll all come down to mathematics. There are pros and cons to both arguments. OTTs believe that if it's too wide a window, why should they pay a big premium when a film is already out in the market for two months?" He adds that the industry needs balance. "Earlier, the bet was theatrical. The OTT trend changed the ecosystem. In a healthy trade system, everyone in the supply chain, including the producer, theatre owner, OTT buyer, and overseas buyer, should make money," he concludes.

Many audiences today tend to skip average or moderately successful films in theatres because they expect them to arrive on OTT within a couple of weeks. The mindset is often, ‘Why go to the theatre if it will soon be available online?'

- Suniel Narang, former TFCC chief

(with inputs from Gopika IS and Divya Shree)Get the latest entertainment updates from the Times of India, along with the latest Hindi movies, upcoming Hindi movies in 2026 , and Telugu movies.”