OTT Platforms Tighten Rules: New Revenue Model May Reshape Theatrical and Digital Windows
For the past few years, OTT platforms have largely dictated the terms of digital deals, leveraging their ability to pay hefty amounts for streaming rights. This dominance has allowed them to influence not just pricing but also release timelines, with many producers willingly adapting to these conditions. While this balance of power may evolve in the future, OTT platforms currently continue to hold the upper hand.
With theatrical runs turning increasingly unpredictable, many producers have become heavily dependent on OTT deals to recover costs and secure profits. As a result, filmmakers agreed to shorten the theatrical-to-digital window to as little as four weeks, even for films still running in cinemas. However, OTT platforms have now introduced a significant change to this model.
Under the new rule, OTT platforms will pay the full agreed digital acquisition amount only if a film performs well at the box office. If the theatrical performance is underwhelming, producers will receive a reduced payout. This shift places greater risk on producers, directly linking digital revenue to box-office performance.
In response, producers are likely to push back by demanding a longer theatrical window, potentially extending it from four weeks to eight weeks, at least for films that are performing well in cinemas. This would allow successful films more time to capitalise on theatrical revenues before moving to digital platforms
Notably, only a handful of films managed to perform strongly at the box office in 2025, making the new OTT condition a cause for concern across the industry. However, producers are hopeful that 2026 will bring a more positive shift in audience behaviour.
The success of Dhurandhar has already begun to change perceptions. Its phenomenal theatrical run has challenged the widely held belief that audiences are no longer willing to come to theatres. The film’s performance has renewed confidence among certain sections of the industry and may influence future decisions regarding release strategies, theatrical windows, and negotiations with OTT platforms.
As the ecosystem continues to evolve, the coming year could mark a critical turning point in redefining the balance between theatres and digital platforms.