Why did OTTs Slash down the Digital Deals?

The biggest discussion in Indian cinema is about the digital deals which are playing a major source of recovery for the producers. All the digital players have slashed down the deal prices which left many producers in shock. They are insisting on new rules and they are finalizing the release dates of films. An early digital release window has killed the theatrical footfalls and now the digital deals are slashed down. What is the reason?
During the pandemic time, the audience had a lot of time to watch the content. Irrespective of the language and the genre, the audience have bought subscriptions and watched the content. The viewership has come down over the past few years. The digital players feel that spending more on the OTT deals will not work. Also, there are a lot of budget restrictions on Indian films. The number of films made every year have increased remarkably. The OTT players have decided to purchase more content by slashing down the digital deals.
Netflix and Amazon have teams working in India and they are closely observing the taste of the audience. They have challenges of releasing new content every weekend to save their viewership. In India, the other factor that is worrying is piracy. A major section of the audience watches content through piracy and they are not much interested in purchasing the subscriptions. Considering the viewership and number of films in making, the OTT platforms have slashed down the prices of digital deals of Indian films. Because of the big quotes, the most awaited films like Varanasi, Raaka, Toxic, Fauzi and others are unsold for now. The makers are now back depending on the theatrical revenue.
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