Following the news, telugu people on social media have posted hypotheses and arguments claiming that this will ruin the telugu theatre sector by reducing theatrical income. They also predicted that piracy will increase for same-day OTT launches. But the main thing to keep in mind is that any reputable director won't release their movie on this OTT platform on the same day that it opens in theatres, especially in a key market like Andhra Pradesh.
A director of even a mediocre movie won't choose these. If they release the movie on this OTT, the public will immediately get the notion that they have given up on the theatrical run, which would further drive away theatregoers from their picture. There would thus be little interest in this. There is no need for tollywood to be concerned about this OTT plan since it may just come down to some hungama from Jagan.