NEW DELHI, March 8 -- As theatrical films compete with OTT (over-the-top) content and other entertainment options for audience attention, promotional campaigns have become a central part of a film's release strategy, often with actors contractually required to participate.

A recent dispute in the Malayalam film industry has brought that shift into focus. The Kerala Film Producers' Association (KFPA) has asked actor Biju Menon to pay a compensation of about Rs.15 lakh to cover the alleged loss incurred by the producer of his movie Nadanna Sambhavam, after the actor allegedly failed to appear for promotions as required under his contract.

Queries sent to the actor on Saturday requesting a comment remained unanswered. The producer, Anoop K...