Telugu movies on OTT: ‘8-week rule’ set to be reintroduced

Those who prefer to sit back on their sofas and watch a new release on OTT within a month of its theatrical release are in for a rude shock from Tollywood – the Telugu movie industry. If you want to watch a new film on your TV/mobile screen, you may now have to wait at least two months.

Yes, according to sources in Tollywood, the ‘8-week rule’ is all set to be reintroduced.

Why are OTT platforms stepping back and what is the real reason behind this new rule?

Until a few years ago, a film release was not a fear but a celebration for Tollywood producers. No matter how a film performed in theatres, the OTT deal acted like insurance.

Also read: What Sangeetha's divorce petition says about Vijay and their marriage

Even if the film flopped, money would come in. If it was a hit, it meant extra profits. But towards the end of 2025, the situation changed dramatically. Now, the real challenge before Tollywood is not “making a film”… but “selling it”.

OTT deals fall to rock bottom

There was a time when deals for a Prabhas film touched Rs 200 crore, and the digital rights for Allu Arjun’s ‘Pushpa 2’ reportedly went up to a staggering Rs 275 crore, leaving everyone stunned. But now the scene has reversed. Giants like Netflix and Amazon Prime have cut down their spending on Telugu films. Recently, even a big-ticket film like ‘Dhurandhar’ reportedly received an offer of only Rs 290 crore, sending shockwaves across the industry. If this is the case for star-driven films, the situation for mid-range films is even worse.

Once, OTTs were gold mines for Tollywood

After the rise of the pan-India market, producers changed their business model. A star hero’s film meant a massive digital deal even before release. Producers would recover costs in advance, and theatrical collections became pure profit. At one stage, star films were sold for hundreds of crores.

Also read: Accused review: Konkona Sen Sharma anchors a stylish thriller on power, hubris and public shaming

Digital rights became bigger than the theatrical business. That is why between 2020 and 2023, a trend emerged in Tollywood: “Films are being made not for audiences… but for OTT.” Stories changed too — mass elements designed for theatres reduced, while binge-watch-friendly narration increased.

Theatres empty… OTTs busy

In this backdrop, declining footfalls in theatres and films being labelled flops within a week or 10 days of release have troubled the industry. Films like ‘Funky’ starring Vishwak Sen, ‘Hey Balwant’ starring Suhas, and ‘Couple Friendly’ failed to get the expected openings at the box office. Producers are now determined to bring audiences back to theatres at any cost. That is why the ‘8-week window’ was discussed in the Telugu Film Chamber executive committee meeting.

Why are OTTs stepping back now?

This is not just a Tollywood problem. It is an OTT business reality.

OTT Phase One: Subscriber acquisition phase

Back then, the goal was simple — buy content at any cost. Every state meant new subscribers.

OTT Phase Two: Profitability phase

Now the only question is: “Will this film bring new subscribers?” If the answer is no — there is no massive deal. In the Telugu market, most people who wanted OTT subscriptions already have them. The growth of new users has slowed. That is why platforms have cut costs.

A truth that was never acknowledged earlier has now come out: a film’s value no longer depends on the star… but on subscriber retention.

Why is the theatre business also declining?

Here lies the core issue. There are three reasons why the theatre market is falling:

Only event films are working

The audience has clearly decided — “If it feels like regular video content, I’ll watch it on OTT. If it feels like an event, I’ll go to the theatre.”

Ticket prices have increased

For a family, going to the theatre now feels like the expense of a short trip.

Early OTT release

Audiences firmly believe that even if they skip the first day, the film will arrive on OTT within 20-25 days.

That is why mid-range films are not getting openings.

Audiences are waiting for word-of-mouth before going to theatres — by then, shows are reduced. Hence, the eight-week rule.

What is this ‘8-week rule’?

A film cannot be streamed on any OTT platform until 56 days after its theatrical release. Earlier, some producers changed norms and brought films to OTT within four weeks, which the Film Chamber believes hurt the theatre business. Now, they are looking to strictly implement the old system again. If enforced, watching a film in theatres may be the only option for a long time before it appears on OTT.

The industry has realised something crucial: if OTT comes too soon… theatres die. If theatres die… OTT also loses value. Without theatrical hype, even OTT releases do not trend. That is why the old rule is being revived — no OTT streaming until eight weeks after release. In fact, this is not just about producers; it is an attempt to change the audience’s mindset.

The audience must think: “If I don’t watch it in theatres… I have to wait two months.” Only then will first-week collections improve.

For this rule to work, two conditions are essential: all producers must strictly follow it. Even big star films must comply. If one major film breaks the rule, the entire system could collapse again.

Is the real problem in the films themselves?

Many blame OTT. However, if we examine the issue more closely, it becomes more philosophical. Earlier, cinema was a rare experience. Now, cinema is just content. Audiences are no longer going to watch films — they are used to scrolling. That is why, for a small film to become a hit today, a good story alone is not enough. It must deliver an experience that feels unmissable.

Industry veterans believe that if the content is strong, audiences will come to theatres, and that many are waiting only because films arrive quickly on OTT. Will this new decision bring life back to theatres? Or will OTT deals shrink further? That remains to be seen.

So what about you — would you prefer watching in theatres, or are you willing to wait eight weeks for OTT?

(This article was originally published in The Federal Andhra Pradesh)