OTT platforms slash budgets for big Telugu films

OTT platforms are cutting budgets for Telugu films, with offers now capped around Rs 150-200 crore for most big-ticket projects, according to industry reports. Streaming giants Netflix and Prime Video are shifting to performance-linked deals, tying additional payments to box-office results. The gap between producer expectations and OTT offers is widening.

m9.news reports that a period film's deal may be cancelled after multiple delays, and a high-hyped project is receiving only a Rs 200 crore offer. The outlet connects these rumours to star vehicles including Prabhas and NTR projects, but notes no official confirmation exists. 123telugu.com confirms the broad trend, saying OTTs have realised higher payments are not proving viable.

If the budget squeeze continues, producers will have to rely mainly on theatrical business for recovery. Industry observers say this could force smaller budgets, shorter schedules, and fewer expensive VFX films. Telugu filmmakers may now need to focus on making films work in theatres first, treating OTT as bonus revenue.