Tollywood
South Indian Exhibitors Mandate 8 Week OTT Window and Shift to Revenue Sharing Model for All Films
South Indian cinema exhibitors have officially implemented two major policy shifts aimed at protecting the theatrical ecosystem. Following an industry meeting on March 11, 2026, exhibitors finalized a mandatory 8-week window for all films before their digital premiere and announced the discontinuation of the traditional theater rental system in favor of a percentage-based revenue-sharing model. The decision to enforce a mandatory 8-week (60-day) gap between a film's theatrical release and its OTT debut is a strategic move to preserve the theater-only experience. Previously, many South Indian films, particularly mid-range projects, were opting for a 4-week digital window, which exhibitors argued contributed to a decline in second-week footfalls. By standardizing this 8-week rule across all Indian films screened in their network, exhibitors aim to provide films with a longer runway to perform at the box office. (adsbygoogle = window.adsbygoogle || []).push({}) In a simultaneous move to overhaul the business side of the trade, exhibitors have decided to move away from the fixed rental system. Under the old model, distributors or producers paid a flat weekly fee to screen films in single screens regardless of the film's commercial performance. This is now being replaced by a percentage-based revenue-sharing model, where the earnings will be divided based on actual ticket sales. This shift ensures that theater owners and producers share both the risks and the rewards of a film's theatrical run. While the exact percentage splits for the new revenue-sharing model are yet to be announced, the move is expected to bring a level of financial flexibility to the exhibition sector, especially for single-screen theaters. Trade analysts suggest that these mandates will likely alter the valuation of digital rights and theatrical distribution deals in the future. All eyes are now on the producers' guilds and major streaming platforms to see how they adapt to these revised terms.
