The way OTT platforms buy films is changing rapidly. And these new rules are quietly changing the way box office numbers are being presented.
Earlier, once an OTT platform bought a film, the producer would receive an advance payment before release and the remaining amount later. Today, things are different.
Many OTT platforms now link the final payment to a film's theatrical performance. If a movie fails at the box office, they reduce the balance payment.
The logic is simple: if people are not watching it in theatres, why would they watch it on OTT?
This year alone, several producers reportedly saw their OTT payments cut because their films underperformed after release.
As a result, producers now have a strong reason to ensure that their films appear successful, at least on paper.
This is one reason why many industry observers question the authenticity of some box office collection figures.
Not every number being circulated online may reflect actual ticket sales. Some films that receive poor audience response are still projected as crossing major milestones.
The goal could be to strengthen their bargaining position with OTT platforms and avoid cuts in post-release payments.
The trend is no longer limited to one film industry. Even in Hindi cinema, very few films are officially described as flops.
Yet many movies that audiences widely perceive as failures continue to report impressive collection figures through trade portals and online trackers.
The mismatch often raises eyebrows.
Cinema halls appear half-empty. Ticket booking platforms show plenty of vacant seats. But online collection updates continue to climb every day. Naturally, people are left wondering where these numbers are coming from.
When asked whether this amounted to misleading OTT platforms, a producer reportedly replied, "Even some OTT employees themselves suggest inflating the numbers. Sometimes, we give them kickbacks. They also help ensure better collections are projected on certain box office tracking portals. It's a collective effort. So we don't feel we are cheating anyone. It's an ecosystem built around survival."
This does not mean every reported box office figure is inaccurate. A few films genuinely perform well. But the growing gap between public perception and reported collections has created doubts that refuse to go away.
With OTT platforms tightening their payment rules, producers may increasingly prefer complete pre-release sales, revenue-sharing deals or pay-per-view agreements that are not tied to theatrical performance.
