A marked shift is taking place in Kollywood as over-the-top (OTT) video streaming platforms or internet rights have become red hot, especially in the case of star-driven films. The trade buzz is that Rajinikanth’s Kaala OTT and satellite television rights were sold separately in one of the biggest deals in Tamil cinema. A month back, Wunderbar Studios, the producers of the film, tweeted that Star Network would be their official satellite television partner. Now, the grapevine is abuzz that Kaala OTT rights for south Indian languages (Tamil, Telugu and Malayalam) have been sold in a separate deal to market leader Amazon Prime Video for a whopping amount.
A few months ago, Kalaipuli S Thanu was the first producer to sell his Kabali and Theri satellite and OTT rights separately. The floodgates have opened after that. Leading producer SR Prabhu’s Aruvi was available on digital platforms four weeks after its theatrical release and TFPC chief Vishal could stream his Thupparivaalan a few weeks after its release. Now, Vishal is on the verge of signing up for an OTT for a much higher price for his latest hit Irumbu Thirai . Ironically, a decade ago, the same TFPC had a rule that a major star film could be telecast on television channels only two years after its theatrical release!
Limited run
The times have certainly changed, as technology and delivery of content are continuously throwing new challenges to producers. While a decade ago, a big Tamil film needed a 100-day run in all centres to recover its investment, today, a film takes just about two weeks to cover 97% of its theatrical run. From the producer’s perspective, things have changed a lot. Barring blockbusters, the theatre lifespan of a big hero Tamil film has reduced to two weeks or so. Small films find it difficult to survive after the opening weekend.
SR Prabhu explains: “The producer realises that he is going to earn money from theatricals for only two to three weeks depending on how big the films turns out at the box-office. After that, the film is available on pirate sites... so, why can’t we put it on a legal platform and bring in a new revenue stream? I think the four weeks gap now between theatrical and OTT release is ideal.”
The business model has changed too. Earlier, Tamil film producers used to bundle satellite TV and internet rights to television broadcasters. Today, a smart producer sees greater monetisation in dealing with digital platforms separately. According to sources, internet rights fetch almost 50% of the satellite television rights for a big hero film. The internet rights also purely depend on the box-office pull of the hero and how successful the film was in the theatres.
In Bollywood, Shah Rukh Khan and Aamir Khan have signed up deals with Netflix, while Amazon has signed up Salman Khan in an exclusive deal for rights to his films before their television premiere. At the moment, a Tamil superstar is in an advance state of negotiations to sign a three-film deal with a major OTT player after he completes his current assignment. The deal includes the star taking internet rights as part of his remuneration package.
The payment model
So, how are deals structured between a producer and an OTT? Amazon Prime Video pays a token amount and the rest of the payment is made from the time of theatrical release to the premiere on the digital platform. Amazon seems to be bullish about Tamil film content and is investing heavily in mass commercial content. Netflix, on the other hand, is concentrating on niche content and have a limited Tamil library ( Visaaranai, Radiopetti ) and their payment to the producer is stretched over a period of time. The latest we hear is that Netflix is gearing up for investing a lot of money in regional content and reworking their business model, even as new players like Zee5 enter the south India market.
Mumbai: Bollywood actor Ranveer Singh at a special screening of 'Deadpool 2' Hindi in Mumbai on Monday. (PTI Photo) (PTI5_15_2018_000042B)
Meanwhile, producers like SR Prabhu and his Dream Warrior Pictures have started bankrolling a web series for Amazon; their first venture starring Bobby Simha and Parvathi Nair. Prabhu says, “Web series do not pose a threat to cinema, as today a lot of people want to watch streaming content on their smartphones.”
The sale of digital video-on-demand (VOD) through various platforms is the fastest growing business in the entertainment industry, as per FICCI-KPMG Indian Media and Entertainment Report 2017.
The buzz is that by 2020, internet rights for Tamil films will cost more than satellite television rights.
