OTT economics reshape star pay
producers flag a growing imbalance in film deals
The dynamics of the film industry are undergoing a significant shift, with OTT platforms emerging as powerful decision-makers—not just in determining release dates, but now in influencing the remuneration of stars as well. What began as a debate around digital premieres has expanded into a larger concern about how OTT deals are shaping perceptions of an actor’s market value.
Producer Srujan recently shed light on this growing imbalance by citing a telling example. He explained that when a film starring a particular hero secures an OTT deal worth ₹10 crore, another project featuring the same actor—but mounted on a smaller scale—may fetch only ₹4 crore from digital platforms. “This often creates a false narrative that heroes are demanding unreasonable remuneration,” Srujan noted, adding that the real issue lies in how OTT platforms assess films rather than the actors themselves.
According to him, OTT platforms rarely acquire films purely on merit. Instead, factors such as banner reputation, production scale, perceived reach, and other internal parameters come into play. This selective approach creates confusion among producers, especially when they negotiate deals based on past figures associated with the same hero.
As a result, producers find themselves caught in a difficult cycle. Many approach OTT platforms expecting similar valuations for films featuring the same star, only to be offered significantly lower amounts. Meanwhile, heroes remain largely unaffected by these backend negotiations. Their remuneration continues to rise, often benchmarked against the highest OTT deal linked to their previous release, regardless of the new film’s scale or budget.
This situation has placed an increasing burden on small and mid-sized producers, who have limited room to absorb such financial disparities. Industry voices now believe that while producers must adapt to the evolving OTT ecosystem, stars too need to acknowledge the ground realities. Greater cooperation and a more balanced understanding of the digital market could be key to sustaining a healthier production environment going forward.
