After the COVID-19 pandemic, the earnings of our beloved stars skyrocketed dramatically. This increase in income primarily came from digital rights, allowing these heroes to command remunerations to their liking.
This era also gave birth to the term "Pan India." Previously, actors who charged four to five crores for a film were now demanding a whopping thirteen crores.
Those who used to earn ten crores had surpassed the twenty-crore mark. A-list actors are demanding a staggering 75 to 100 crores.
Producers, in the midst of fierce competition, agreed to these demands and provided whatever was asked of them.
However, this trend may no longer hold, as the Hindi digital market has experienced a significant downturn, with a stark decline in just one month. Though many films in the past secured exclusive Hindi digital rights, many are now poised for release.
Companies that initially expressed interest in obtaining Hindi digital rights have had a change of heart and are now stating they no longer need or can afford them.
Once upon a time, Hindi satellite and digital rights were a lucrative source for our industry. These rights were sold like hotcakes. Additionally, actors used to leverage the value of these rights to demand exorbitant remunerations.
Even actors who had not delivered a single profitable film could command nine crores in remuneration thanks to the Hindi market. Fierce battles were fought over these Hindi rights.
Today, OTT companies are stubbornly refusing to acquire Hindi digital rights. The producers are now struggling to sell Hindi rights to make a breakeven of their investment at least to an extent.
This shift is turning the tide. Focusing solely on South Digital Rights is reducing OTT revenue, and the value of Hindi satellite rights has also diminished. They no longer command substantial sums.
In a recent incident, an OTT company declined Hindi digital rights for a movie starring Nani. A similar situation arose for a film featuring a senior hero, prompting a producer with multiple films to seek out buyers for Hindi digital rights.
Sources in the Tollywood industry predict that these non-theatrical revenues will continue to decline, making the situation even more complex.
Only time will tell if the heroes will reconsider their astronomical demands, or if they will still command 20 crores, 100 crores, or even 70 crores.