At a time when implementation of GST, higher ticket prices and a prolonged film industry strike have resulted in dwindling occupancy in movie theatres across Tamil Nadu, the release of Rajinikanth and Kamal Haasan movies should delight distributors and exhibitors. Right? No.
With less than two weeks to go for June 7, the theatrical distribution rights for Salem area for Rajinikanth’s Kaala was sold by Lyca Productions to local distributor Siva for ‘Minimum Guarantee’. Sources say that many other areas are yet to be sold. SPI Cinemas have bagged the Chennai city rights for the film.
A number of factors are being cited by distributors to explain their hesitancy to do business.
While distributors and theatre owners are expecting a massive hit, there is uncertainty over how the market has adjusted to the ‘shocks’ of GST (ticket price rise) and the new risks, thanks to the stated political ambitions of Mr. Rajinikanth and Mr. Kamal Haasan.
This uncertainty over their movies, many in the industry say, will exist every time their films release in the run up to the 2021 Assembly election. Another key reason is the not-so-great box office collections of Kabali and Lingaa, which is making distributors wary of buying the film for the inflated prices that are apparently being quoted.
Together, both stars have six movies (three each) which are under various stages of production. A few distributors have told The Hindu that there are indeed concerns about investing big money in these films as they could run into trouble.
‘Conscious, conservative’
A leading exhibitor and distributor based out of Chennai said distributors are ‘very conscious and conservative,’ despite the hype surrounding these films.
He added his own advice to both stars: “Either do movies or fully get into politics. If you want the best of both worlds, you will be left with nothing good. There is a risk that families with other political affiliations could boycott these films,” he said.
Mr. Rajinikanth will have two releases in quick succession ( Kaala and 2.0 , shot on a whopping budget of over ₹450 crore) in June and August before shooting his next film, which is being produced by Sun Pictures.
In addition to Vishwaroopam 2, Sabash Naidu and Indian 2, Mr. Haasan has also agreed to anchor the second season of the popular reality television show, Bigg Boss 2, for Star Vijay.
Major players in the movie business feel that ‘minimum guarantee’ and ‘outright sale’ of films are becoming uncommon, not purely due to the fact that movies could face political opposition but because business has shrunk post-strike.
“Distributors now prefer movies for a commission. With the implementation of GST and addition of other levies such as entertainment tax, the ticket prices have gone up, reducing occupancy in theatres,” said Archana Kalpathi, CEO, AGS Cinemas.
She said a string of big movies are needed to determine how the market has recalibrated itself post GST.
“At present, we are unable to determine the market for a film. We need a few big films that will bring people back to the theatres so that we can calibrate it and put a number,” she said.
Another distributor, who is in talks with Lyca to distribute the movie, confirmed that the production house is reluctant to let distributors ‘merely distribute’ the film. As of now, the distributors are blinking first.
“They insist that we either buy the film out for MG rate or they are saying that they would release it themselves. They want ₹60 crore from Tamil Nadu. Plus, the rates have remained high despite the failures of Kabali and Lingaa in a few regions,” said the distributor.
Asked if six star movies in a little over two years could be a ‘bit too much’ for the Tamil market, producer G. Dhananjayan said that the market can absorb as many big films as possible. “It is always ‘the more the merrier.’ The market will always be happy to absorb films of Mr. Rajinikanth and Mr. Kamal Haasan,” he said, adding, “Big production houses such as Lyca Productions and Sun Pictures can withstand these political pressures.”
