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Mint
04-06-2025
- Business
- Mint
Single screens rebel as revenue model puts Telugu cinema on edge
The Telugu film industry may have avoided a strike by single-screen theatres this month across Andhra Pradesh and Telangana, but the issue is far from resolved. Single-screen cinemas are pushing for a shift from the minimum guarantee (MG) or rental-based model to a percentage-sharing arrangement, like the one enjoyed by multiplexes. Currently, single screens not only have to pay MGs to play films but also take home a meagre 10% of the box office, while multiplexes retain around 50%, with the larger chunk still going to distributors. This issue is especially crucial in the south, where single-screen theatres continue to operate in large numbers—unlike in the northern states—and drive substantial box office earnings. According to media consulting firm Ormax, Telugu films grossed ₹2,348 crore in 2024, contributing 20% of India's total box office. Trade experts estimate that over 80% of this revenue in the south comes from single-screen cinemas. Also read: Independent producers, boutique studios veer towards regional cinema for big gains 'There is no way single screen cinemas can survive if this continues. It is an unfortunate situation where distributors are acting very high handed and demand the commitment of MGs from single screens only who eventually earn 10-15% of what the film makes in their cinema, while multiplexes take home 50%," said Yusuf Shaikh, business head of feature films at Percept Pictures. Shaikh, who is also a committee member of the Film Federation of India, added that strong associations back single-screen operators in the south and the issue will likely be raised in other states like Maharashtra. Also read: The rise of Hollywood-style cinematic universes in southern films Cinemas under threat A single-screen theatre owner, who did not wish to be named, said, 'The loss is the producers' whose films may not release wide if theatres don't agree, but they don't seem to realise this." The owner warned that many small cinemas are shutting down, and the trend could accelerate. 'This is a time when India needs more second tier cinemas, which can operate at low costs in smaller markets. That is the only way for screen penetration to improve. This should force the industry to rethink else it is easy for owners to switch to other businesses or exit," the person added. Despite lower ticket rates, single-screen cinemas often match multiplex earnings due to higher footfalls. For instance, a major release that earns ₹60-65 lakh in a theatre might result in multiplexes earning ₹30 lakh, while the single screen takes home only ₹10 lakh. 'Such terms are outdated and leave nothing for the exhibitor. This is as good as asking the single screen to shut shop," said independent exhibitor Vishek Chauhan. Also read: Back to basics: PVR Inox to tap into underserved regions of India with low-cost cinemas for growth
Mint
07-05-2025
- Entertainment
- Mint
Film broadcast rights slide 10% in 2024 as medium struggles with shift to streaming, piracy and content problems
With video streaming platforms now the go-to medium for movies after their run in cinemas, the value of TV broadcast rights fell 10% in 2024, while Hindi movie viewership comprised just 18% of the total movie genre audience, according to the latest Ficci-EY report. Broadcast rights for films declined to ₹ 1,300 crore in 2024 from ₹ 1,500 crore in 2023, Ficci-EY said in the report released late March. Experts attributed the decline to films premiering on digital much before linear television, along with piracy, which dents the revenue for any project to varying degrees. Further, Hindi films no longer suit the tastes of family audiences in north India, where viewership, if any, is dominated by dubbed southern films. 'Satellite rights for movies have been in structural decline and no broadcaster is going aggressive on acquisition rates given that the cable and satellite growth numbers are flat. Plus, there is only so much you can make from advertising," film producer Shariq Patel said. While there is no demand for smaller-scale, non-star films at all on TV, with the industry grappling with a huge number of unsold movies, Patel added that the rights of southern films are acquired at a lower cost than premium Hindi films. 'Their stars are not just more recognisable in the Hindi belt now, the movies are also more TV-friendly than, say, urban-centric Bollywood. Their entire tonality is more mass-market," Patel explained. Other than the wider perception that films will be available on OTT platforms within eight, and in some cases, four weeks, experts said all movies are struggling with the big problem of piracy where even big-ticket, star vehicles are available on messaging apps and other services on the day of release. 'So many people in small towns are able to watch pirated versions of new movies on local cable channels. All films are available post 12 pm on the Friday of theatrical release. In such a scenario, where will satellite money come from?" asked Yusuf Shaikh, business head of feature films at production and distribution firm Percept Pictures. Broadcast industry executives said even theatrical successes fail to grab eyeballs on TV on premieres or subsequent runs. This has led to a decline in advertising rates, which don't justify the steep price that producers ask for while selling satellite rights for their films. Box-office successes such as Kalki 2898 AD didn't strike satellite TV deals before or immediately after release. The broad understanding is that TV has been relegated to the third medium of content consumption, after the advent of video streaming platforms such as Netflix, Amazon Prime Video, and ZEE5. Some say that this is a problem of content and lack of appeal for TV audiences. As far as Hindi movies go, broadcasters say mid-budget, experimental and slice-of-life films that are made more often in Bollywood have not found favour with family audiences over the past few years. While titles such as Badhaai Ho and Queen struck big at the box office, especially in big cities and multiplexes, they are hardly a saviour for broadcasters when it comes to single TV households across India. 'Cable television may no longer be a metro phenomenon, but movie viewing does take place on TV in tier-two and tier-three towns where internet penetration may not be that great. TV isn't going away anywhere but it is a problem of content," film producer, trade and exhibition expert Girish Johar said.
Mint
06-05-2025
- Entertainment
- Mint
Why star-powered movies have OTT handprints all over them
Video streaming platforms constantly outbidding each other to acquire the post-theatrical rights of big-ticket films are now getting on board soon as high-profile star vehicles are announced, gaining outsized influence over the filmmaking in the process. For movie studios, the initial payments from the over-the-top ( OTT ) platforms serve as seed funding for production expenses. But beyond that, they are also finding that the theme and plotline of a movie may have to be modified to the platform's requirements. This often means avoiding controversial subjects such as hot-button political or social themes as OTT players, having come under government scrutiny recently, are playing it safe. Theatrical release dates are also sometimes altered or pushed so a film can find space in the streaming platform's quarterly calendar, which is planned in advance. 'The competition for the top 5-10 star films of the year is very high and the race starts right after the director and actor have come on board," said Yusuf Shaikh, business head-feature films, distribution, acquisition and IPR (intellectual property rights) management, at Percept Pictures, an entertainment, media and communications company. While theatrical movies come with censor board certification, streaming platforms still like to play it safe to appease their wide audiences and ensure they don't invoke the government's wrath, he added. Last year, although Nayanthara-starrer Annapoorani-The Goddess of Food had been cleared by the censor board and released in cinemas, it was removed from Netflix on producer Zee Studios' request after the movie triggered objections over its plot. 'While deals once struck are usually not gone back on, there is always pressure that can be put to avoid anything objectionable," said Shaikh. 'For instance, anything related to religion, politics or anti-nation is out of the question. Plus, no form of animal cruelty or violence will be allowed." Also read | Live entertainment takes centre stage on streaming platforms A senior content studio executive said streaming platforms that get on board early in the making of high-profile films are keen to avoid content that could possibly create controversies over religious or nationalist sentiment or be seen as anti-government. Producers have no option but to agree with the streaming platforms, especially if large production budgets, extensive visual effects and foreign crews are involved, the executive added, declining to be identified. Independent trade analyst Sreedhar Pillai said streaming platforms typically agree to come on board for a production after gauging if the buzz around a big-ticket film is adequately high, and depending on the stars associated with the project. 'A lot of delays are happening nowadays because the platform doesn't have a free slot to fit and stream the movie, which means it can't even release in theatres," Pillai added. To be sure, the mad race to acquire rights of big-ticket films often leaves several mid- and small-budget films unsold. 'OTTs can come on board at different stages for different films. For big star cast, event films, they come on board very early. But for smaller films and content films they may do so after watching the film or depending on the reputation of the producer and director," said Vipul Shah, promoter, Sunshine Pictures Ltd. 'They may also come on board after reading the script or after a detailed narration and understanding the vision of the makers." But while streaming platforms generally don't give too many suggestions, in some cases they do expect some changes, he said. Also read | Written off the page: Why Bollywood's screenwriters are struggling to earn a living
Mint
05-05-2025
- Entertainment
- Mint
The rise of Hollywood-style cinematic universes in southern films
Southern film industries are moving beyond sequels to build expansive cinematic universes, with characters and storylines crossing over, mirroring a model long adopted by Hollywood and now increasingly by Bollywood. Filmmakers like Lokesh Kanagaraj, Prashanth Neel, and Prasanth Varma are creating action and superhero films that remain connected but feature different characters, introducing southern cinema fans to the well-known model of cinematic universes. The Lokesh Cinematic Universe, including Tamil-language action thriller films such as Kaithi, Vikram and Leo , will soon launch sequels to the existing movies, besides a new project starring Suriya titled Rolex , already introduced in Vikram. Prashanth Neel, on the other hand, is set to connect the KGF and Salaar franchises, featuring Kannada star Yash and Telugu actor Prabhas respectively. Meanwhile, Prasanth Varma who released Telugu mythological superhero flick Hanu-Man last year, has already announced a sequel Jai Hanuman besides another film called Simba . Bollywood has already spawned a cop universe including films like Singham, Simmba and Sooryavanshi and a horror comedy universe including Stree, Bhediya and Munjya , besides announcing new projects. 'Everyone wants to intelligently cash in on an existing big franchise," said Yusuf Shaikh, business head-feature films, distribution, acquisition and IPR management at Percept Pictures. 'Even internationally, filmmakers have always tried to carry stories forward, because these movies are always easy to sell. Takers are available, be it satellite or digital rights." However, unlike Hollywood, which doesn't rely on big stars to put together multi-movie franchises , Indian films are still dependent on the most popular names across the language industries to lure people to cinemas, in turn, often inflating the cost of projects. Especially if the previous instalment has been successful at the box office, it is common for the star's fee to go up for sequels and spin-offs. 'It is a limitation that we have. Everyone from the viewer to the platforms and (OTT or satellite) buyers is crazy," Shaikh explained. Also Read: Southern stars turn to OTT as medium gains strength Everyone, including the southern language filmmakers are taking a leaf out of the Hollywood playbook, agreed film producer, trade and exhibition expert Girish Johar. He pointed out that Indian film franchises like Dhoom first introduced viewers to the idea of a few principal characters finding themselves in different situations and pitted against different antagonists, launching the idea of franchises in the country. 'Filmmakers have understood the value of reaching out to a wider audience base this way. That said, while lead actors playing pivotal parts in such universes can be easily changed in Hollywood, like say, a James Bond, in India, box office is a star-driven phenomenon," Johar emphasized. To be sure, Bollywood sequels and films part of wider cinematic universes, have fared well, especially those released after the pandemic, setting an encouraging trend for southern cinema. Titles like Sooryavanshi ( ₹ 196 crore), KGF: Chapter 2 ( ₹ 434.70 crore), Drishyam 2 ( ₹ 240.54 crore), Gadar 2 ( ₹ 525.45 crore), Bhool Bhulaiyaa 3 ( ₹ 283.8 crore), Singham Again ( ₹ 268.35 crore), Stree 2 ( ₹ 627.02 crore) and Pathaan ( ₹ 543.05 crore) have set the cash registers ringing. 'Franchises make good business sense and are the most successful formula, at the moment. A Baahubali 2 did significantly better than Baahubali 1 , so besides sequels, spin-offs and new characters are also a good tactic," independent trade analyst Sreedhar Pillai said.
