In the last couple of years, the growing popularity of digital streaming services like Amazon Prime and Netflix has emerged as a huge threat to the movie distributors and exhibitors. In more or less 30 days from theatrical release, most of the movies are landing on online platforms. So, most of the exhibitors and distributors are ending up in loses.
Audiences love to enjoy the hit film in theatres, but it is not the case with films with average and bad talk. Because, viewers have come to an opinion that these films can be watched online when they arrive on Amazon Prime or Netflix. In a way, this a big-time impacting the investment of film distributors. In the latest development, Telugu Film producers council have taken a decision in support of the distributors. They have unanimously taken a resolution to sell the Digital and Satellite Rights with a 8 Week exclusive lock-in period for movie theatres. Which means, the film can be screened on TV or online, only after 56 Days of theatrical release.
The new decision will come into effect from April 1st, 2019. So, this pact is expected to give a small amount of relief to distributors.