As far as Tamil Nadu is concerned, ‘Ponniin Selvan 1’ has been well received. Kamal’s ‘Vikram’ was the highest grosser in Tamil Nadu. ‘Ponniin Selvan’ will break that record. But it will be difficult to beat Rajini’s ‘2.0’ globally, says Ramesh Pala. We spoke to film industry trade analyst Ramesh Bala about how the film industry is currently performing in the Tamil film industry and what are the issues facing it.
How is the movie business going? – “Once a film maker finishes shooting a film, he sells it to film distributors. There are two types of it. Either there will be one distributor all over Tamil Nadu or a separate area in Tamil Nadu like Chennai, Chengalpattu. For example, if a film is made for Rs.10 crore, it will be distributed to 10 areas in Tamil Nadu and sold. The distributors who receive it will collect a minimum amount and give it to theaters across Tamil Nadu. For example, assuming there are 25 to 50 theaters in Tirunalveli, they will take at least Rs.5 lakh as an advance and give the film to them. Whether the film runs or not, the theater owner has to pay the specified amount to the distributor.
Similarly, if the film earns more than Rs.5 lakhs, i.e. if the film makes more profit than the given amount, the producer and the theater owner will share it. Whereas if it is a small film then the theater people will not pay the distributor. In the case of such films, they will share half of the collection from the distributors. It depends on their agreement whether it is 60 percent, 40 percent or 50-50. So, such is the relationship between a theater owner and a distributor. This is the practice.
Similar procedure will be for manufacturer and distributor also. That means if there is extra profit, the distributor has to share that amount with the manufacturer.”
Even if the film is destroyed, should the theater owner pay the distributor? – “It depends on their contract. If theater members agree to the minimum guarantee, it should be done by paying money. If a small film is released, they will share the share on percentage basis. If the movie collects 1 lakh in theatres, they will say that they will give 50 thousand. Besides, the films of 10 major actors like Kamal, Rajini, Ajith, Vijay etc. will get good profit from the theater for the distributor and from him for the producer.”
Is this trade transparent? – “Distributors have offices in every town. They monitor things like whether a theater is crowded or not. Also, the image is given on trust. If you cheat, they won’t give you the film next time. Red Giant films are currently distributing the largest number of films in Tamil Nadu. We know what kind of action will be taken if we cheat them. Actions like red card and blacklist will be imposed on the theaters concerned. Next time their trade will be completely affected.”
Any ‘pressure’ behind Udhayanidhi Stalin’s ‘Red Giant’ distribution of more films..? – “No. According to the theater people, the accounting case is going directly to them without any shadow of a shadow. Other distributors give share of a film only after 9 months. As they release the film every week, they settle the account case from time to time.
If anything, if there is a loss or profit in one film, they promise to correct it in the next week’s film. Other distributors, if a film does not run, distribute another film only after the next three months. They say that you can wait till then and deduct the advance. But Red Giant is not like that. They say that it is convenient for us as the film is released every week. If a film doesn’t run this week, they make up for it when a big film comes next week.”
If a film doesn’t pan out at the moment, does Oditi and Chartlight rights make up for the loss? – “Yes. For a producer, a multi-lingual film without an exorbitant budget can still recoup losses through satellite and OTT business. Theatrical collections have become a declining revenue stream these days. ODD and satellite are the most profitable for a producer today.”
Is ‘Ponniin Selvan’ breaking the past records of Tamil cinema? – “Yes, as far as Tamil Nadu is concerned, the film has received a good response. Kamal’s ‘Vikram’ was the highest grosser in Tamil Nadu. It is leading by collecting Rs.180 crores. It is predicted that ‘Ponniin Selvan’ will beat that collection. Globally, Rajinikanth’s ‘2.0’ is leading with Rs.700-750 crores. But it is difficult to beat ‘Ponni’s Selvan’. Because ‘2.O’ did well in Hindi and Telugu. ‘Ponniin Selvan’ was not well received in Hindi and Telugu. No doubt this movie will be running in theaters for the next 3 weeks anyway. If you look at it like that, it seems that this film will break the record of ‘Vikram’ in Tamil Nadu and will be at the second place after ‘2.0’ globally.”