The OTT market is not what it used to be two or three years ago. Today, even films starring top stars are finding it difficult to get the kind of digital deals producers once enjoyed. OTT platforms now revise the final deal based on how a film performs in theatres.
That is why the latest buzz around Varun Tej‘s Korean Kanakaraju has surprised many.
According to industry reports, the film’s OTT rights have been sold for Rs. 26 crores to Netflix. It sounds like a very good deal on paper, but many people in the trade are finding it hard to believe. The reason is simple.
Varun Tej is coming off one of the worst phases of his career. Ghani, Gandeevadhari Arjuna, Operation Valentine, and Matka were all major box office failures. These films not only flopped in theatres but also failed to create much interest after arriving on OTT. As a result, Varun Tej’s market value has come down.
That is why the reported Rs. 26 crore deal has raised doubts. Interestingly, just a few weeks ago, reports claimed the OTT rights had been sold for around Rs. 15 crore. The sudden jump has made many wonder if the full story is being told.
However, the reality is that the OTT business has changed a lot. Instead of paying the entire amount upfront, many streaming platforms now sign performance-based deals. Producers may announce a big headline figure, but the full amount is usually linked to certain conditions.
If the film performs well at the box office and reaches the agreed targets, the producer gets the full amount. If the collections are below expectations, the OTT platform can reduce the payment. In some deals, even the film’s streaming performance is taken into account.
This system allows producers to announce an attractive number before release to create some hype among the audience. Korean Kanakaraju could be one such case.
That is the new reality of the OTT business. The headline number is highlighted to create some hype among the public. The final payment depends on how the film performs at the box office.
To be fair, Korean Kanakaraju has generated more buzz than Varun Tej’s recent disasters. We have to see whether Merlapaka Gandhi’s horror-comedy can convert that decent curiosity into footfalls when the film releases on August 7.
