Buzz: Delayed OTT Payments Are The New Pressure

There was a time when a film’s digital deal was locked on day one of the shoot. Sometimes, even before the shoot began. That advance used to make the entire project risk-free. That way, OTT once saved producers, just as the initial wave of Britishers helped small kingdoms in India to fight others. But now, like how the East India Company started controlling the whole of India, even the OTTs are doing the same corporate takeover.

Today, OTT platforms are no longer buying films. They’re waiting for them. If there is no buzz around a film, no deal. Even if there is interest, the payment structure has changed completely. Earlier, producers used to get a major chunk upfront. Now it’s 25% advance. Another 25% after theatrical release. The remaining 50%? That can take up to six months. Sometimes more. In reality, cash flow is broken. Producers have to clear dues to all the departments and financiers before release. But OTT money, which was supposed to support this cycle, is now delayed. That creates pressure. Real pressure.

OTT platforms are now linking deals to theatrical performance. If the film underperforms, the price gets cut. In some cases, final payments are pushed up to a year. Add to this a reported 30% drop in digital valuations for 2026. Platforms are becoming selective by taking fewer films, and that too at Lower prices and Tighter terms. While they are spending huge amounts to acquire big-ticket films like Fauzi, Raaka, Spirit & Varanasi, they are hitting hard on the back of small to medium-budget films. We have to see what happens next.