Many small-budget Southern language films are finding great success by selling their streaming rights after becoming unexpected hits at the box office.
It’s a well-known fact that most OTT platforms aren’t keen on buying films that lack big stars, large budgets, or renowned banners. Even if they do consider such films, they often offer peanuts to the makers.
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Thus, a growing number of small film producers are adopting a bold strategy: refraining from clinching OTT deals pre-release.
Instead, they release their films in theaters first, waiting for a favorable response before negotiating with OTT platforms. After the film succeeds in theaters, they sell the film to that OTT platform which offers them the best deal.
However, this strategy isn’t without its risks. If the film fails to make an impact in theaters, OTT platforms might not even offer the cheap deals they were contemplating before the release.
Movies like Premalu, Manjummel Boys, and Lover were not initially picked up by streaming platforms before their theatrical release, as they were cautious after losing money on several big-budget films.
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However, after proving successful in theaters, these films sold their streaming rights for nearly double the pre-release price.
According to streaming platform executives, successful films can command up to 25% of their total box office earnings as a fee.
Platforms are increasingly willing to invest more in movies that have already proven their appeal in theaters. They are also investing in dubbing these films into different languages to broaden their audience reach.
For instance, Disney+ Hotstar is streaming Manjummel Boys in multiple languages, despite its theatrical release being limited to Malayalam and Telugu.
Streaming platforms see value in acquiring these surprise hits as they are proven successes and require less marketing effort compared to new original content.
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