The film industries, particularly the Telugu film industry, which underwent major changes after COVID due to the rise of OTT platforms, gradually neglected theatrical box office performance and focused mainly on star combinations and OTT deals. This shift has recently started showing serious consequences.
OTT platforms have moved to a new model where films are acquired at a base price, and the remaining amount is linked to the box office performance, which will surely change the making style of the Telugu film industry. Based on the theatrical run, the streaming platforms will decide the additional payout beyond the base price.
With this change, the industry is essentially back to the pre-COVID reality, and now every film must achieve strong box office numbers for buyers as well as producers to recover their investment. Overestimating the business can push producers into crores of losses. Producers, heroes, and the entire industry need to stay realistic about their market potential before finalizing budgets. Overspending without strong content can lead to massive failures.
