Well, you have read that right! Apparently the prices of big summer release have been slashed drastically. Not just that, there are several filmmakers holding their head and running from pillar to post in order to renegotiate the prices. And, some others are trying to find buyers for the satellite rights of their upcoming movies, because two of the leading channels who purchase cinema as software are suffering immense losses.
While on one hand, a particular channel wants to back out completely, the other is talking tough to producers, Bollywood films and are offering them a pittance for their satellite rights.
As always, there are exceptions to the rule — one channel has a five-year deal with Ajay Devgn and Salman Khan, while another channel is happy with its association with Aditya Chopra. However, by and large, there is a market slump and this is cause for alarm. Producer Ramesh Taurani said that a film with prominent actors and good content will never have an issue cutting a satellite right deal with a channel. “It is only small films that have a tough time cutting deals,” he says.
Another trade source adds that the business has slowed down because a leading channel, which used to cut big film deals, has become completely non-active for the past few years. Hence, the earning potential is reduced by a huge amount. Film producer Jayantilal Gada, one of the key players in this area, says, “We hope the market situation improves. Currently, the satellite right dealings vary from project to project. We evaluate a film according to the presentation given by the makers or the channel, and see their business potential keeping the channel’s interest in mind. If we feel that it will do good business at the box office and are sure of pulling through a deal, we go ahead. But there have been exceptions. For instance, for Ranbir-starrer Besharam, we chose to exit from our deal with Reliance Entertainment as the film did not live up to our expectations, business-wise. But we are always open to business and will buy it once it is open for resale.”
Producer Ramesh Taurani says that films which is star-studded remain unaffected. “It is only small films that have a tough time cutting deals,” he says.