Epic Disaster Forces Netflix to Renegotiate OTT Deal for Thug Life
The OTT gold rush that once empowered filmmakers seems to be hitting a cold streak. The latest example is Kamal Haasan and Mani Ratnam’s Thug Life, which reportedly bombed at the box office, and now, its fallout is affecting the film’s digital fate as well.
During the pandemic era, OTT giants like Netflix and Amazon Prime Video were known for shelling out massive sums to acquire digital rights, sometimes even before a film’s theatrical release. However, with the industry returning to normalcy and audience preferences shifting, streaming platforms are now rethinking their strategies.
According to industry reports, Netflix is renegotiating the OTT deal for Thug Life post its theatrical failure. The platform is allegedly seeking to slash 30% off the previously agreed payout, citing the film’s poor performance and dwindling post-release demand.
This move has alarmed the film fraternity. If this practice becomes the norm, especially in Tollywood, producers of underperforming films might have to brace for double losses—at the box office and on digital platforms.
While this may prompt filmmakers to focus more on content quality, it also highlights the volatile nature of the current OTT business, where deals are no longer set in stone.
