It was just about a year ago that the Tamil Nadu Theatres Association placed three demands before the state government - an increase in ticket prices from Rs 220 to Rs 250, an eight-week mandatory gap between theatrical and OTT releases, and permission for theatres to host other commercial activities similar to malls.
Unfortunately, these demands have not been met, and Tamil Nadu theatres are now in crisis mode, stated Tirupur Subramaniam, head of the Tamil Nadu Theatres Association. He added that he has called for an urgent meeting of theatre owners on Tuesday to discuss the next steps.
On Sunday, Tirupur Subramaniam, who has often been vocal about the state of the Tamil film industry, alleged that the theatrical business is currently in crisis. Speaking to the media, he said that in the post-COVID period, the large sums paid by OTT companies for content caused star salaries to skyrocket, with some charging exorbitant fees of around Rs 140 crore (apparently referring to Ajith and Vijay).
He added that producers gave in to the demands of stars and directors, and along with rising production costs, this resulted in many corporate production houses facing severe losses and even going bankrupt. As a consequence, theatres are struggling to make profits, and in some cases, they are unable even to break even, he alleged.
The present four-week theatrical-to-OTT window, he said, has also hurt theatres. With producers earning substantial profits from OTT sales, theatres are suffering from a lack of films and quality content. Subramaniam also advocated profit-sharing models for actors instead of high upfront salaries and urged that entourage costs be reduced.
According to him, many theatres have not screened any films over the past few months due to the absence of major Tamil releases, and the situation may worsen in 2026 as only two big films - Vijay's Jana Nayagan and Rajinikanth's Jailer 2 - have been confirmed so far.
Trade analyst Ramesh Bala explained that the tussle between the Producers' Council and the Theatres Association has been ongoing for several years.
He told NDTV, "This time the theatres association has stood its ground since, for the last few months, there have hardly been any releases in the B and C centres. Many producers have restricted their releases to Chennai alone, which means B and C theatres have no content. As a result, most theatres have remained shut and operate only on weekends. Producers too face issues as OTT platforms have drastically reduced acquisition rates. If producers agree to extend the window to eight weeks, they are likely to receive even less money from OTT. At the moment, both producers and theatres are facing serious challenges."
It was only in November this year that the Tamil Film Producers Council (TFPC) held a general body meeting and finally set a minimum theatrical-to-OTT window. According to the mandate, films featuring A-list stars must maintain an eight-week gap between theatrical and OTT release, while films with B-list actors must observe a six-week gap.
The TFPC has also requested A-list stars such as Rajinikanth, Kamal Haasan, Vijay, Ajith, Sivakarthikeyan, Dhanush and Suriya to adopt alternative payment models rather than demanding full salaries upfront, as the current system has become unfeasible for producers. However, whether the stars will agree to this and how soon these mandates will be implemented remain major questions.
Tamil producer and distributor G. Dhananjayan, who is part of the TFPC, spoke to NDTV about the concerns raised by Tirupur Subramaniam. "Some producers are not releasing films in B and C centres because there are no collections, and they end up incurring unnecessary costs. Audiences there come only for big-star films or films with strong word-of-mouth. Other films do not generate revenue, so producers are requesting distributors to release films only in A-centres and multiplexes," he said.
On the topic of star salaries, Dhananjayan said that even producers want actors to be more reasonable in their demands. "The market today is unpredictable, and we cannot foresee which film will work. But most actors assume every film will be a hit and demand the same salary. We are requesting stars to link their fees to satellite and digital rights - we will pay a portion upfront, and once digital and satellite sales are completed, we will pay the remainder; otherwise, they must accept a pay cut. Today, even big films are struggling to sell their digital and satellite rights. When it comes to OTT platforms, it is now the producers chasing them, not the other way round. It is no longer a seller's market. OTT platforms are selective in what they acquire, and if we demand an eight-week gap to OTT, producers lose even more money. Look at Hindi cinema - Hindi films also release on OTT after eight weeks, but that hasn't improved the performance of small and medium-budget films in theatres. That is the question we have as producers."
Following the TFPC meeting in November and the proposals they put forward, it now remains to be seen what demands the Tamil Nadu Theatres Association will present to the state government on Tuesday.
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