The Indian film industry may be on the cusp of a fresh disruption. Aamir Khan’s decision to release his new film, Sitaare Zameen Par, on YouTube’s pay-per-view platform marks a notable departure from established distribution models. For an industry already reshaped by the rise of subscription-based streaming services, this move shifts the spotlight to a platform better known for free, user-generated content. Priced at ₹100, Khan’s bet on YouTube bypasses OTT giants, raising the question of whether India’s fragmented and price-sensitive audience is ready for à la carte cinema in the digital age.
Even before Khan’s announcement, YouTube hosted a vast library of films, albeit largely free to view. Yet, the use of its pay-per-view feature for a major release is unprecedented in India. Given the price-sensitive nature of Indian consumers and the relatively limited appeal of subscription models, this experiment could either redefine post-theatrical film distribution or serve as a cautionary tale.
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OTT’s reach — and its limits
Despite the explosion in online video platforms, paid OTT penetration in India remains modest. According to the latest FICCI-EY 2025 report, only 547 million users, or 38.4% of the internet-enabled population, subscribe to OTT services. For a vast majority, entertainment continues to be consumed through free platforms like YouTube, Instagram, and broadcast television.
Khan’s decision to bypass mainstream OTT services stems from both their limited reach and constrained revenue potential. Most streaming platforms cater to urban, affluent audiences and operate on monthly or annual subscription plans. This limits their ability to connect with price-sensitive users in smaller towns and rural areas, many of whom cannot afford recurring fees or lack access to theatres.
In contrast, YouTube’s scale is unmatched. With 491 million monthly active users in India as of February 2025, it offers an unparalleled distribution channel. Notably, 80% of Indian internet users above the age of 18 use YouTube regularly, giving Sitaare Zameen Par a potential audience far wider than traditional release platforms.
Bringing cinema to the masses
Khan’s stated aim is to democratise cinema access. He calls his model ‘Janta ka Theatre’ — a digital revival of the pay-per-view experience reminiscent of the VHS and DVD era. For ₹100 (roughly $1.15), a family anywhere in India can rent the film and watch it on their phone, tablet, smart TV, or computer, circumventing the cost and distance associated with cinema halls or subscription services.
The model also benefits from India’s digital infrastructure. The country leads globally in electronic payments, driven by UPI adoption and the widespread availability of low-cost smartphones and data plans. These factors lower the barriers to digital film purchases, making Khan’s bet on pay-per-viewmore viable than it would have been even five years ago.
The timing is also opportune. Theatres remain geographically skewed — about 70% are located in South India and Maharashtra, according to Cinemaprofile.com. This leaves much of northern and central India underserved. For many in these regions, digital-first releases are not just convenient, but necessary.
Cracks in the OTT revenue model
Streaming platforms have been a crucial source of post-theatrical revenue, often paying 1.5 times a film’s theatrical collection for exclusive rights. However, this model is under pressure. The FICCI-EY 2025 report shows that revenue from streaming rights declined from ₹3,500 crore in 2023 to ₹3,100 crore in 2024, as platforms tightened budgets to improve profitability.
Producers are increasingly constrained by algorithm-driven visibility, opaque performance metrics, and bundled licensing deals that dilute a film’s uniqueness. Khan’s pay-per-viewmodel aims to flip this equation. YouTube’s 45:55 revenue-sharing split—favouring creators—gives filmmakers more control over pricing, release windows, and access to real-time viewership data. This transparency is largely absent in traditional OTT deals.
The risk of going pay-per-view
While the pay-per-view model empowers creators, it also entails significant risk. Subscription platforms offer a safety net through upfront payments; in contrast, pay-per-viewsuccess depends entirely on convincing viewers to make a one-time purchase.
Khan’s refusal of reported OTT deals worth ₹125–150 crore in favour of earning “₹100 from my audience” is a bet on scale. But scale is far from guaranteed. Indian consumers, even in middle-income segments, remain highly selective when paying for content. The cultural norm of free digital entertainment is deeply entrenched.
Should Sitaare Zameen Par fall short of expectations, it could discourage others from attempting similar direct-to-digital launches. Unlike theatres that benefit from shared social experiences or OTT platforms with AI-curated suggestions, pay-per-view requires active consumer intent and relies heavily on word-of-mouth. Poor performance would reaffirm the existing dominance of subscription-based OTTs and theatrical chains.
A bellwether for the industry
Whether Sitaare Zameen Par becomes a breakout hit or a misfire, its impact will be closely watched. If successful, it could usher in a hybrid distribution model where YouTube becomes a legitimate, monetisable release window — especially for mid-budget or socially relevant films that struggle to find space in theatres or OTT bundles. Other actors, producers, and studios may follow Khan’s lead, challenging the gatekeeping power of legacy platforms.
Alternatively, if the pay-per-view experiment falters, it may cement the position of existing OTT giants, leaving direct-to-audience digital releases a niche effort at best.
For now, Sitaare Zameen Par is not just a film — it is a test case for India’s evolving digital economy and a referendum on whether Indian audiences are ready to pay, even modestly, for content in a media landscape saturated with free options.