Yash’s much-awaited action thriller Toxic, produced by KVN Productions, is finally gearing up for a grand release on August 26 after facing multiple delays.
With a film of this scale, trade circles expected the makers to demand huge prices from distributors. However, KVN Productions appears to be taking a different route.
Instead of selling the Telugu theatrical rights outright, the production house has reportedly decided to release the film on its own across Andhra Pradesh and Telangana, taking on much of the financial risk itself.
Interestingly, this isn’t a new strategy for KVN Productions. The banner has followed a similar model for its previous films as well. It usually collects advances from distributors, ensures a wide release, and reportedly returns the money if the film fails to recover the investment. Since distributors carry minimal risk under this arrangement, the company is said to charge only around a 7% distribution commission. The commission reportedly goes up slightly when advances are involved.
This kind of distributor-friendly model is rare in the industry, where producers generally prefer to sell the rights outright and transfer the risk.
For Toxic, Dil Raju is handling the film’s distribution in the Telugu states. However, since KVN is reportedly quoting high advance amounts, it remains to be seen how many district distributors will come forward at those prices.
According to trade buzz, Dil Raju is expected to release the film directly in key territories such as Nizam, Vizag, East Godavari, and Nellore instead of assigning them to local buyers.
Before Toxic arrives in theatres, KVN Productions will first release Vijay’s Jana Nayagan this week. All eyes are now on whether the banner’s unique distribution strategy will pay off with Toxic.
