OTT platforms tighten policies: Malayalam cinema struggles in post-theater sales

The earnings of Malayalam cinema are diminishing in the post-theater sales. OTT and satellite markets are the most profitable businesses beyond the theater. However, OTT platforms have now refined their policies and are only acquiring films that generate positive audience feedback. As 2024 draws to a close, out of 214 Malayalam films released so far, only about half have made it to the OTT platform after final decisions. This includes films of top actors and actresses still awaiting confirmation.

Earlier, OTT companies were willing to pay Rs 2- 3 crores for films with renowned actors or directors. But now, that amount has dropped to Rs 50-75 lakh. For films that do not garner public interest, companies will offer only the prices they propose. However, this is not the case for hit films.

Smaller market

OTT companies assess the popularity of films based on new viewers and how many times a film is re-watched after being uploaded. Reports indicate that Malayalam films are not achieving significant profits. From the perspective of companies, Malayalam cinema only accounts for about two percent of the total OTT business in the country. They are hesitant to invest in such a small market. They believe investing in films from larger markets like Tamil Nadu and Andhra Pradesh, with bigger populations, would yield more profit.

Pirated versions of all films on OTT platforms are available on Telegram. Naturally, many viewers are watching pirated versions without subscribing to OTT services.