'VOD' works in the favor of western films.. As far as Indian films go, they don't really enjoy that freedom plus I guess they'll have to shed some extra money needlessly to get that approval.. I can hardly remember 2-3 films that were telecasted on tv saying 'first time ever, even before releasing theaters'. But if you look at it closely in some small theater they might've released the movie (may be the show gets cancelled due to lack of audience) which is reported as 'film's official release' which will aid the tv channel to telecast the film & further home video copyright owners to release the dvd/vcd into the market.
And even VOD is always 'bad quality upscaled print' that is basically for rents or to be shown in some 7-star, 5-star hotels, or during air travel or while going on a cruise... VOD contributes to a separate business model. That's why it's called 'video on demand'. Personally I hate that print to the core.