Netflix has made a huge adjustment to how it does business that could disrupt the OTT scene in South India. The streamer used to spend a lot of money for Telugu, Tamil, Kannada, and Malayalam movies, but now he doesn't buy movies that cost a lot. Instead, the platform is spending its money on producing new shows and web series for certain areas.
Why Netflix Is Changing Its Mind
During the pandemic, OTT platforms bought more movies than ever before. Producers made a lot of money, budgets got bigger, and the pay of stars soared through the roof. Things changed, though, when theaters opened up again.
A lot of movies that didn't do well at the box office also had problems generating a lot of views on the internet. Satellite revenue went down, and OTT companies began to limit how much they could spend on new content. Netflix, in particular, learned that paying a lot of money didn't always mean constant profits, especially for movies that didn't fare well in cinemas.
How are OTTs influencing the Producers?
Not many know that nowadays it is the OTT giants that are influencing the release dates of the film. In fact, they are the one who decide and tell the producers when to release the film. Krishna Sarvepalli, who works for a production house in Telugu says that OTT giants buying the films before the release itself has become a ritual and a must. “OTT giants have a certain budget every year and that is how they buy films every year across the industry. Now based on their budgets, and the cast of the film, these platforms decide the time of the release and only then they promise to buy. So if their budgets for 2026 releases are over, it is a must that producers have to wait for a slot in 2027 to release the film. “
What it implies for South Indian producers
A lot of producers who depended on Netflix's big digital deals are apprehensive about the choice. Filmmakers may have to reassess their costs because big-budget movies may not be able to demand high OTT rates longer. As digital income becomes less stable, the pay of emerging stars may also need to be changed.
A renowned producer, who wants his name to be kept anonymous said, “We bring money for interest from financiers to make a film. So we have to shoot and release in the shortest possible period so that we get the profits to pay back the loan. Imagine the film being delayed as per the OTTs terms and conditions and us paying interest for the longest possible period and then never recover.”
As OTT platforms get pickier and cease buying low-profile material, little movies that are already having problems getting discovered will have an even harder time.
Netflix’s big strategy
Hyderabad is currently a place where people may be creative. As part of this huge change in approach, Netflix has launched a new office in Hyderabad. This indicates how committed the corporation is about developing high-quality original series in Tamil and Telugu.
Some of the upcoming titles are Legacy featuring Gulshan Devaiah and Madhavan, Takshakudu starring Anand Deverakonda, Stephen, Super Subbu and Love, Made in Korea. These projects illustrate that Netflix is trying to develop stories that people all over the world can relate to.
A New Stage for South Indian OTT Content
The South Indian entertainment business still has a lot of potential, even though things have changed. Netflix's new aim is to do fewer projects, but ones that have a bigger impact. These ventures should put an emphasis on quality, cultural authenticity, and a worldwide audience.
This move might make movies more eco-friendly, tell better tales, and bring back an emphasis on creativity in different parts of the world. Netflix is spending more money on original programming, which will transform how people create tales online in South India.
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