Allu Aravind Reveals Tollywood’s OTT Crisis

Back in the day, Telugu producers used to have the additional buffer in terms of financial resources as they had OTT platforms running for digital rights of big hero films. There was this estimation at one point in time that the OTT platforms would pay 50% of the production cost of any big hero film and the rest 50% must be collected through theatres.

This OTT model was in effect for 3 to 4 years during the Covid period and also after the pandemic. However, things have drastically changed now, and the same was confirmed by senior producer, Allu Aravind.

In his latest media interaction, Allu Aravind revealed that OTT platforms are no longer willing to pay big money for superstar films, and there is no point in producers, making multiple films using OTT as a buffer option.

Arvind revealed that leading OTT platforms are no longer rushing to buy big Hero films for exorbitant prices. He revealed that there is a general slump when it comes to OTT platforms as they are no longer willing to rush and pay around 50% of the production cost for a big budget film.

When this model was in effect, many producers used to make hefty profits by selling out the OTT rights to leading OTT platforms, and then make the remaining film on moderate budgets and recover the same through theatrical run.

But going by the words from Allu Aravind himself, this model is no longer in effect and things are starting to look very gloomy for the leading production houses.

Apparently, the OTT platforms now are willing to buy 10 films by paying 5 crores rather than giving 50 crores to one single big film.

In this context, it could be noted that even Chiranjeevi’s Viswambhara is yet to be bought by any OTT platform. The fact that a big hero film, which is being made with big production, values itself is not being bought by OTT platforms, elevate the kind of situation that is sustaining in Tollywood.