Amazon Prime's new business model shocks producers!

Though they appeared profitable at the beginning, online streaming sites like Amazon Prime and Netflix are becoming a serious threat to the industry. Bigwigs like Dil Raju and Suresh Babu have expressed their concerns over selling the digital rights to these sites. They say that people are not showing interest in coming to the theatres. But, the latest business proposal from Prime Video is worrying them a lot.

As we know, Prime bought the digital streaming rights for 'Saaho' and 'Sye Raa' much before their release for whopping rates. But, they received a lukewarm response at the box-office and people are showing no interest in watching them on Prime too. They brought huge loss for Amazon and that is why they decided to come up with a new plan. As per this plan, they will be quoting lower rates for the film and will be giving money on a pay-per-view basis. If the views are more then the producer gets more money apart from the initial rate quoted. This is a good model if the film succeeds but if they fail, then the producers will be ending up in huge losses.

Nowadays, films have become so dependent on digital rights and this new plan from Amazon Prime Video is creating tensions among industry circles.