Is OTT release a lucrative option for small budget movies? Producers and analysts weigh in

Amazon Prime Video, recently, revealed that seven Indian films would premiere on their platform in the coming months. Movies like Gulabo Sitabo (Ayushmann Khurrana and Amitabh Bachchan), Shakuntala Devi (Vidya Balan), Penguin (Keerthy Suresh), Ponmagal Vandhal (Jyotika), among others are the movies that will soon release on Amazon Prime Video. Though these movies were to release in the theatres however due to the on-going lockdown and uncertainty over the reopening of theatres, the films are now heading for an OTT release. 

Also Read | Amazon Prime Drops 'Ponmagal Vandhal' Motion Poster; Check Out

Trade analyst and producers answer: Why OTT release is a lucrative option for small budget movies?

Recently, Baahubali's producer Shobu Yarlagadda in a conversation with an entertainment portal discussed how an OTT release would benefit small budget films. He revealed that small budget movies could get about 80% to 120% of their production costs recovered from an OTT release, which could be impossible if the makers wait for the theatres to reopen. However, he exclaimed that the decision of an OTT release is in the hands of the makers, according to him, the makers have to weigh all factors and make a decision on what seems lucrative to them. 

Also Read | Keerthy Suresh Starrer 'Penguin' To Have An Amazon Prime Release; Read Details

Also Read | Fahadh Faasil's Highly-anticipated 'Malik' Will Not Have An OTT Release, Confirms Director

Meanwhile, a leading producer from the Malayalam film industry reportedly believes that small budget movies can get double the production cost from the OTT release. According to the producer, due to the diaspora of the audience, a movie's worth is decided based on its content, and sometimes a movie can make double the cost of production from an OTT release. According to a report, Jyotika starrer Ponmagal Vandhal has recovered 60-70% of its production cost. The Jyotika starrer is reportedly made on a budget of Rs 8 crore and has been bought by Amazon Prime Video for Rs 5 crores. 

Though, many small budget movies like Ponmagal Vandhal, Gulabo Sitabo, Penguin are opting for an OTT release, big-budgeted movies like Suryavanshi, Master, and Marakkar: Arabikadalinte Simham are waiting for the theatres to reopen. According to Baahubali producer, big-budgeted movies will wait for the theatres to reopen as they have little choice because an OTT release will prove to be a loss. 

Also Read | Rajinikanth's Movies That You Can Binge Watch On OTT Platforms

Currently, Amazon Prime Video is the only OTT platform streaming a plethora of Indian films. However, many producers and trade analysts believe in the coming day OTT platforms like Hotstar, Netflix, and others will negotiate deals with filmmakers to stream Indian films.