However, behind the hype, the reality is dark and difficult. Hundreds of films are released every year, yet only a few become profitable. Most either struggle to break even or fail.

OTT platforms were once considered a safety net. Earlier, producers felt secure because even if theatrical revenue was weak, digital rights would cover the losses. That is no longer the case. OTT companies have now changed their approach, and their new terms are putting producers under huge pressure.

Previously, platforms paid high amounts even before a film was completed. Now, payment depends heavily on theatrical performance. A base amount is agreed upon, but OTT platforms will pay the full amount only if the film performs well in theatres. If it flops, they can cut up to 25% from the agreed rate. If the film exceeds expectations, they may increase the amount by up to 25%.

Reports suggest that Balakrishna's Akhanda 2 is the first big Telugu film to follow this new Netflix model. This shift forces filmmakers to focus more on genuine theatrical success instead of relying only on OTT revenue.

While some producers are accepting these terms because of rising budgets, many are unhappy. They argue that several films perform better on OTT than in theatres, and this model ignores that reality.

Another growing concern is reduced creative and release flexibility. OTT involvement affects timelines and key decisions. With many films now arriving online within four weeks of release, theatre revenues shrink. This means most films may end up receiving a reduced payout of up to 25%.

We have to see if Akhanda 2 gets 25% more or less than the agreed amount from Netflix.