'Devara Part 1' began its theatrical run with mixed reviews, but thanks to the Andhra Pradesh and Telangana governments for ticket hikes and special midnight shows, the film saw a strong start collections wise. NTR's six-year wait paid off, as opening-day numbers were impressive.
By Dussehra, most distributors are expected to break even though the status of a few is still in the state of 'fingers crossed'.
The key question is whether Devara has been profitable for its producers, NTR Arts and Sudhakar Mikkilineni.
The film's budget reportedly stands at Rs 400 crores, with Rs 350 crores already recovered. The remaining Rs 50 crores must come from satellite rights, which the producers still hold.
However, if the satellite deal fails to bring in Rs 50 crores, profitability becomes difficult, especially after accounting for returning of GST payments of at least Rs 10 crores.
For the producers to make a profit, they need to secure Rs 60 crores from satellite rights or see strong returns from the Hindi version.
This mirrors the situation with 'Pushpa: Part 1', which saw Hindi success but losses for Telugu buyers. With "Devara: Part 2" potentially years away, aggressive marketing is crucial to ensure the first part’s financial success.
However, it is shocking to note that the satellite rights for the successful 'Kalki' have not been sold yet. On the other hand, the Rs 35 crore OTT deal for Thaangalaan has been canceled, as it scored a commercial failure at theatres.
The uncertainties surrounding OTT and satellite rights are affecting every major film. It has become increasingly difficult to predict the OTT and satellite market for any star due to the unpredictable nature of the industry.
As a result, producers might start considering OTT and satellite rights as mere bonuses in the future and plan their budgets based primarily on theatrical earnings.
Even heroes' remunerations may need to be adjusted accordingly down the line.