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Cinemas in South India are experiencing a resurgence as people are returning to the big screens. The box office is seeing success with recent releases like “Jailer” and “Gadar 2” making millions in revenue. In 2022 alone, over 800 movies have been released in the four South Indian languages. However, not all movies have been successful in securing satellite or OTT rights, with approximately 100 movies in each language failing to find buyers for these rights.

The decline in movie ratings on television, caused in part by the rise of OTT platforms, is one of the reasons for this trend. Additionally, certain movie genres that used to perform well on TV, particularly those targeted at a family audience, no longer attract high ratings. The content of Tamil and Malayalam movies, in particular, has become more realistic, which is not conducive to TV viewership.

The excessive production of movies is also contributing to the accumulation of films without buyers for satellite rights. With lower standards and a focus on catering to OTT platforms, anyone with a few crores can produce a movie today. This shift has resulted in a compromise in content quality. Television premieres now primarily cater to rural audiences, as the urban population gravitates toward streaming platforms.

The increase in production costs due to rising artist remuneration is another factor. Pan-India and pan-South movies are becoming more prevalent, leading to a decrease in the budget for region-specific movies on TV. Major OTT platforms and channels are acquiring a limited number of movies out of the vast selection available, further limiting opportunities for films without takers.

Satellite rights, which used to provide a fixed income for movie producers, have been affected by the boom in OTT. This shift has led to a decrease in the amount offered for satellite rights, which may not be acceptable to producers and actors. The oversaturation of content due to the popularity of OTT platforms has also caused a pile-up of movies without buyers.

Given these challenges, South Indian cinemas need to adapt to the changing landscape and explore new avenues for revenue generation.

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