Why direct-to-OTT films are dying—except for Bollywood’s big studios
While video streaming platforms have mostly gone slow on premiering films directly online, insisting that all movies go to theatres first in order to benefit from the box office buzz, bigger studios with clout are still managing to strike some lucrative deals. Entertainment industry experts say titles like Nadaaniyan, Sarzameen and Tehran, among others, all of which were released directly on streaming platforms, are proof that mainstream Bollywood studios still have a way with OTTs. Their large slates and star-studded titles that may be acquired post cinemas continue to lure streaming platforms that would otherwise not have made an exception.
According to a report by media consulting firm Ormax, of the 50 most-watched streaming originals in India in the first half of 2025, just five are films. Unlike web-series, which are clearly differentiated from theatrical films due to their long-form nature, direct-to-OTT films occupy a confusing middle ground, the proverbial ‘no man’s land,’ the report added. They offer neither the narrative depth of series nor the grandeur and pop culture value associated with theatrical films.
During the pandemic and soon after, small to mid-budget films such as Shershaah, and Sarpatta Parambarai, had seen success on OTT.
“OTT platforms may favour big banners and films with bigger stars that create enough pre-release buzz, simply because of the anticipation these films can evoke in terms of audience curiosity. That’s often based on the goodwill of the banner, especially if they’ve delivered a fairly successful film before, and the star value, which can bring repeat value to the content,” film producer Anand Pandit said. On the other hand, smaller films can sometimes struggle to get good OTT deals, especially pre-release deals, because they don’t have many popular stars. Unless you market such films well or have the right contacts with OTT platforms, they naturally get drowned out by star-studded films during pre-release negotiations, Pandit added.
Indie films struggle
Several films releasing now were greenlit two years ago, before the mandate to take movies to theatres first had kicked in, film producer Shariq Patel said. “Also, these production houses are seen as premium, so a lot of the responsibility shifts from the OTTs, and it is easy for them to tell their global bosses that it isn’t their fault, even when the film fails to grab eyeballs. The bias towards mainstream Bollywood studios remains,” Patel added. On the other hand, films by even tier-II production houses or those not starring A-list names find it difficult to even land meetings with streaming platform executives. All of these have to then try and make it to cinemas, which they don’t have adequate marketing budgets for. That explains the number of films simply lying unreleased, Patel added.
To be sure, film industry experts point out that the smallest films made for production budgets of ₹6-8 crore have to spend an equal amount additionally on marketing with trailers, hoardings and influencers to gain mindshare among audiences for the film to have a theatrical release. That is impossible for many, and there is unsold inventory of at least ₹500 crore lying around in the Hindi film industry alone.
“OTTs need to stay friends with the bigger production houses with large slates who can then leverage these one-off direct-to-OTT movie deals. For everyone else, there is complete darkness,” said a senior executive at a streaming platform who did not wish to be named.
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