Malayalam cinema sees dip in theatre bookings as producers embrace pay-per-view OTT models

Pathanamthitta, Kerala: In a concerning development, there has been a noticeable decline in the announcement of new Malayalam films this year compared to previous years. Traditionally, by July, theatre bookings would begin for films expected to be released by the end of the year.

Industry insiders note that, on average, bookings would be made for at least four to five films each month. However, this year, even half that number has not been reached.

Many producers are now more inclined to focus on films that prioritise storytelling and artistic merit, rather than rushing into commercially driven projects. Typically, theatres are booked six months in advance, with official announcements following. But this year, very few release announcements have been made for the post-Onam period. 

One major reason behind this shift is the rise of OTT platforms, which are increasingly acquiring screening rights through ‘pay-per-view’ models. These platforms allow viewers to pay only for what they watch, and producers receive between Rs 6 and Rs 8 for every hour a film is streamed. This payment rate can vary across different OTT providers.

Films that perform well in theatres and garner positive audience reviews are now more likely to sell their complete digital rights. In other cases, if a film hasn’t had much success, producers are often forced to sell the rights for a modest amount. Some OTT platforms, especially those with affiliated satellite television channels, are buying digital and satellite rights in bulk. Even then, pricing is largely dependent on a film’s quality and box office performance.

Interestingly, several smaller films that underperformed in theatres have found unexpected success after reaching OTT audiences.