Indian movie producers have recently come under fire for allegedly involving themselves in the practice of “self-purchasing” movie tickets. This process allows producers to artificially inflate a film’s box office numbers, which in turn creates a false perception that the film is performing well. Despite frequent backlash, this controversial practice still exists, and prominent producer Boney Kapoor has confirmed it.
In a recent interview with Komal Nahta, Kapoor revealed that this practice has gained traction in recent years, particularly after the rise of the OTT landscape in India. Here’s what he said:
“This is my opinion and I may be wrong. But I feel that OTT is responsible. Satellite is responsible. In today’s times, the contracts related to the sale of OTT and satellite rights are linked to the box office figures. As per the contracts, if a film crosses the Rs. 100 crore mark, the platforms would give an additional Rs. 5 crores to the makers. If the film goes past Rs. 120 crores, Rs. 5 crores more would be given.”
Kapoor continued, “By the time the OTT platforms realize, picture lag ke hit ho chuki hai books mein! Moreover, there are not many distributors. The studios themselves release the film. The important thing to consider is that the kharcha spent on buying tickets will go under ‘promotional activity’! So, it will be taken as an expense.”
In simple terms, the money spent on tickets is treated as a promotional expense and is often recouped through the inflated acquisition price paid by OTT platforms. This means streaming services end up overpaying for content based on manipulated data, which ultimately affects their profitability and content budgets.
This is a serious issue because it undermines multiple aspects of the industry. For instance, box office numbers can no longer be seen as a reliable measure of a film’s success, since we don’t know the extent to which they have been artificially influenced by producers. It’s safe to say the box office has become more of a marketing tool than an authentic reflection of public demand.
OTT platforms in India are particularly impacted, as their profits shrink and they are forced to become more cautious and controlling in how they spend on content acquisition. This situation could worsen if platforms begin demanding stricter verification procedures for box office data in order to protect themselves from being duped.
Naturally, this may complicate relationships between streamers and producers.
In the same interview, Kapoor pointed to some recent developments that gave him hope: “Aamir Khan has not sold the OTT or satellite rights (of Sitaare Zameen Par). I hope it makes a lot of money so that people realize that only the theatrical can give you this kind of money. The makers of Saiyaara would probably be releasing the film on OTT in 8 weeks. I hope he (producer Aditya Chopra of Yash Raj Films) delays the OTT release.”
Kapoor’s request to Aditya Chopra makes sense. A longer theatrical window gives a film more time to build genuine public interest and revenue, which then justifies a higher OTT price. However, the current controversial model pressures producers to hit specific box office milestones to qualify for bonuses. This, in turn, paves the way for inflated numbers and shorter gaps between theatrical and OTT releases, further diminishing a film’s true value.
This may push both producers and exhibitors toward standardized, longer theatrical windows, potentially reshaping the overall release strategy for Indian films.
Still, Boney Kapoor believes this controversial practice won’t last much longer. “Sooner or later, everybody will get smart. The producers are indulging in this practice, as their contracts are valid which were signed long back. Ab woh phasenge jinki nayi filmein banegi; in the sense that reality will strike.”
The more the public learns about this scenario, the higher the chances of an increase in direct-to-OTT releases. After all, it’s easier these days to drop a film directly on streaming than in theatres. The direct-to-OTT model allows producers to secure guaranteed returns without the financial risks of a theatrical run or the ethical dilemmas of box office manipulation.
Ultimately, this trend pressures the OTT industry to evolve its business practices. Relying on theatrical box office numbers for content acquisition is proving to be a flawed model. Platforms will need to find new, more reliable ways to gauge a film’s value and audience appeal to ensure their investments remain sound. Stay tuned for more updates.
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