On Thursday, Gulabo Sitabo became the first Bollywood film to bite the OTT bait, inviting the wrath of several exhibitors and distributors who felt betrayed that the makers had bypassed a theatrical release. Leading multiplex chain Inox immediately warned of "retributive measures" while PVR Cinemas urged filmmakers to hold off their projects till the theatres re-open. The rift only widened on Friday with Amazon Prime Video announcing the direct-to-web release of seven films, including Vidya Balan's Shakuntala Devi.

With two big releases — Sooryavanshi and 83 — waiting in the wings, trade sources indicate the industry has made losses upwards of Rs 600 crore, keeping in mind their domestic and overseas business, satellite rights, and OTT and music deals. The recent move has only added to the exhibitors' woes. "The distribution sector earns around Rs 75 crore from a big film, and about Rs 15 crore to Rs 25 crore from a medium-budget venture. Exhibitors and distributors are looking at a collective loss of around Rs 50 crore from Gulabo Sitabo and Shakuntala Devi's OTT premiere," says a trade source.