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What is more profitable for a movie producer: an opening in theatres or an OTT release?

In the last two years, film content was scarce and OTTs were looking for ready content to drive subscriptions at a time when viewership was at an all-time high on streaming platforms

November 30, 2022 / 01:18 PM IST

Direct-to-digital movie releases are a product of the coronavirus pandemic that gave producers the choice to look beyond a theatrical release to monetise their content.

With many films still releasing directly on streaming platforms, the question is whether a theatrical release is more profitable than a release on an Over-The-Top (OTT) platform.

Some producers say profitability is limited on OTTs. Others say it is a safe bet for small films.

In the last two years, OTTs offered producers 80-100 percent premiums (OTT platforms paid 80-100 percent more over the cost of production) to showcase their movies.