Mar 12, 2026 11:30am IST
Why South Indian Producers Are Welcoming the New 8-Week OTT Rule (EXCLUSIVE)
In a proactive move, South Indian film distributors recently met in Bengaluru and passed two key decisions that have been widely welcomed by the industry.
The distributors have made it mandatory for films to observe an eight-week window before their release on OTT platforms. They have also scrapped the previously criticised rental system, ruling that exhibitors will now shift to a percentage-based revenue model.
Both decisions have been welcomed by producers and directors across the South Indian film industries.
Kannada filmmaker Hemant Rao expressed his support for the move. “I believe it is a great idea. The lines between theatrical and OTT releases had become blurred. The time gap between the two was simply too short. It desensitises audiences from watching films in theatres because they know they can watch it on OTT almost instantly. An eight-week window will allow passionate cinema lovers to watch films on the big screen without feeling rushed,” he says.
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He also welcomed the removal of the rental system. “As a producer, I want to have a share in the success of the film, which will now be incentive-driven. If the film does well, I stand to gain.”
Chennai-based director Sudha Kongara offered a more cautious response. “I’m not fully aware of the details yet, but from what I gather, this appears to be a very positive move, especially for movie theatres. It could take us back to the days when there was a frenzy to watch films in cinema halls,” she adds.
The response has been similar across the South Indian industry. Malayalam producer Listin Stephen also welcomed the move. “This is a positive decision because films will get enough time to run in theatres and producers can make the most of the eight-week gap. In the Malayalam industry, OTT deals ahead of theatrical release are not very common, unlike other South industries. We usually secure OTT deals based on a film’s performance in theatres. Therefore, these guidelines will benefit us, especially at a time when only a few films are succeeding at the box office.”
Meanwhile, Anil V. Thomas, president of the Kerala Film Chamber, echoed the distributors’ stance. “For Malayalam cinema, these guidelines will prove helpful. Pre-release OTT deals are rare unless the film stars a major name. This will give every film—not just star-driven projects—an equal opportunity to perform in theatres. Bollywood already follows an eight-week OTT window, so why not adopt it here? We already have a 60/40 revenue model in Malayalam, and with these guidelines, exhibition norms across South Indian cinema will become more streamlined with a fixed percentage system.”
With inputs by Gayathri Krishna (for Malayalam industry).
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