Remunerations Become A Huge Headache For Producers!
Many might think that producers are bagging loads of money through digital rights but this is not the case. The main reason for that is the remuneration of heroes.
With the OTT market growing drastically, a lot of films are getting huge chunks of money through digital rights. At the same time, the cost of satellite rights went down a lot. Other than star hero projects, small and medium films are not getting a lot of money through satellite rights. Music rights are being acquired on a sharing basis while the audio companies are buying the music rights of big movies completely for massive rates.
Many might think that producers are bagging loads of money through digital rights but this is not the case. The main reason for that is the remuneration of heroes. Previously, star heroes used to take 30-40 crores for a movie. Now, Tier 2 heroes are taking such amounts. Considering their market, Tier 1 heroes are getting remunerations between 70-100 crores.
The producers are giving the remuneration stars are demanding in order to get their dates. The films are being made on a grand budget. Looking at the last two years, the producer is facing huge losses if the movie fails at the box office. There are films that ended up having 50 crores loss too. The money they get through digital rights are going into the pockets of heroes.
In order to get good revenue from the theatres, the films need to get positive talk right from the morning shows. The collections are dropping massively after three days if the movie gets an average talk. There are few films which are ending up as commercial failures even when the talk is decent. This is taking a huge toll on the producers. Even the Tier 3 heroes are demanding around 10 crores based on their fame and market. The movies are being made on a budget of at least 20-25 crores these days.
The theatrical business is not even covering half of the investment lately. Even the bigshot producers are getting affected by it. Thanks to the boom in the digital market, the heroes have hiked their remuneration while the producers are giving as much as they demand. Only a few producers are acting in a careful manner by not spending heavily on Tier 2 and Tier 3 heroes and their movies. They are either making small films or doing huge projects. This is keeping them in the safe zone to an extent.