Years ago, satellite TV rights for films were surrounded by whispers of commissions and secret dealings. Middlemen controlled the process; nothing moved without them.
Some even claimed that channel employees took a share of the cuts. One major network eventually shut down its operations after suffering heavy losses from such shady deals.
Now, the same cycle seems to be repeating in the OTT world.
Initially, official agencies mediated between producers and platforms, taking modest commissions. Later, as platforms built direct ties with filmmakers, transparency improved.
However, fresh reports suggest that new middlemen are emerging again, brokering OTT deals for massive commissions.
For one upcoming big film starring a major hero, intermediaries allegedly pocketed around â¹9 crores just for non-Telugu rights. The Telugu rights are still under negotiation, reportedly involving another hefty commission.
At first glance, this arrangement may seem convenient for producers, paying commissions to close deals quickly. But this facility is not open for every random producer.
The problem lies in how control over OTT platforms has gradually concentrated in the hands of just two or three influential producers.
Every OTT service allocates a fixed fund for film acquisitions, primarily to boost subscriptions.
When most of the available funds are used to acquire just one or two big films, OTT platforms are left with no budget to buy mid-range or smaller projects. This is one major reason many platforms are now declining new film deals.
When these expensive deals fail to attract new viewers, eventually subscriptions don’t grow, budgets tighten further, resulting in many other films unable to sell OTT rights.
The deeper concern is that certain OTT officials and middlemen appear to have developed close financial and sometimes personal ties with a few top producers. As a result, kickbacks are becoming routine among them with no qualms.
Only filmmakers who can access this nexus, and keeping their films in the hands of these two-three banners, seem to survive, while others can never sell their OTT rights.