Zee Entertainment Limited is making headlines as it prepares to launch the family drama "Sankranthiki Vasthunnam" on its OTT platform Zee5 on March 1, 2025. This significant release is set to mark the first time in Telugu cinema history where a film will have simultaneous premieres on both OTT and television—Zee TV—at 6 PM on the same day.
Directed by Anil Ravipudi, "Sankranthiki Vasthunnam" has emerged as Venkatesh's biggest hit, grossing over ₹300 crore at the box office, making it immensely profitable for all parties involved. With Zee5 acquiring the digital rights for ₹30 crore prior to the theatrical release, the production has seen financial assurance even before its OTT debut. This unique model may set the stage for future collaborations between OTT platforms and TV channels, offering the potential for similar simultaneous releases down the line.
Despite this positive news, Zee Entertainment is also grappling with significant legal and financial challenges. Recently, the company received orders from the Assistant Commissioner of CGST & CEX, Mumbai Central, along with the Joint Commissioner, Central GST Noida, concerning GST violations. According to their filings, Zee Entertainment now faces ₹3.77 million as a GST amount with interest and ₹0.38 million as a penalty for not filing GSTR 3B returns between April 2020 and March 2021. A separate order indicated GST payables amounting to ₹23.22 million with interest and ₹2.32 million as additional penalties.
Zee Entertainment has voiced confidence about the situation, stating, "There are merits in the case, and will take necessary legal recourse under the available law by filing an appeal before the appellate authority." Their prompt reaction indicates they plan to challenge the GST orders and are preparing to fight against the imposed financial penalties. This is not the first legal issue facing the company; earlier, Tamil Nadu tax authorities fined Zee Entertainment ₹0.40 million, along with ₹16.56 million interest, citing excess credit claimed from July 2017 to March 2018.
The company insists these issues will not drastically affect its operations or financial standing. They emphasized, "The notice will not have a significant impact on its financial stability or daily operations," assuring stakeholders of their commitment to maintain stability amid the legal battles. This assurance came as Zee Entertainment's shares fell by 4.48 percent to ₹92.76.
With "Sankranthiki Vasthunnam" poised for release, all eyes will be on how the film performs on OTT and TV, particularly as it reaches audiences who have embraced streaming services. The intention behind simultaneous premieres showcases Zee Entertainment's ambition to redefine distribution strategies by adapting to changing viewer habits. Whether the future holds similar patterns for other films remains speculative, but the success of this venture might encourage widespread adoption of such models.
For now, fans are eager to see how the family drama will be received on March 1, 2025, as Zee Entertainment navigates its new opportunities and challenges on the business front. The intersection of content quality, strategic partnerships, and legal fortitude will be pivotal for Zee Entertainment as they continue their ascent within the competitive entertainment industry.