Blindsided by Master’s early OTT launch, theatre homeowners rue lack of transparency

On Wednesday, Amazon Prime Video introduced that its subscribers might stream Tamil movie Master, starring Vijay and Vijay Sethupathu, within the lead roles, from the comforts and security of their properties, beginning January 29. And this has pushed exhibitors and distributors throughout the nation into misery.
“We were all shocked. We would have actually made profits in the third and fourth week, and now this OTT release will eat into our weekend crowds. We are about to take a big hit,” Rakesh Gowthaman, proprietor of Vettri Theatres in Chennai, stated.
Typically, the exhibitors comply with a 70-30 income break up with producers for movies which have massive stars like Vijay. In different phrases, for each Rs 100 that exhibitors make on a ticket, Rs 70 will go to the producers, say, for the primary two weeks after a movie’s launch. In the next week, the income share of theatres will go up by, say 10 per cent. This is the window for theatre homeowners to really make income.
“Some theatres have even agreed to 80-20 profit-sharing with the producers of Master. These terms were agreed as a goodwill gesture considering the fact that the makers waited for a year to release this film in cinemas,” Rakesh added.
The primary grievance of the exhibitors of Master is that they have been saved at the hours of darkness concerning the movie’s OTT launch technique. “We had no idea,” stated Tirupur Subramaniam, President of Tamil Nadu Theatre Owners’ Association.

At the time of scripting this piece, Subramaniam was within the technique of chalking out a plan of action within the mild of the most recent improvement. “I am trying to contact the producer. We’re planning to release a press statement today evening,” he informed indianexpress.com.
The exhibitors didn’t anticipate such a flip of occasions provided that Master is retaining the money registers ringing on the field workplace. “Why would they want to kill a movie that is still doing so well in theatres?” requested Rakesh Gowthaman. He famous that except a couple of reveals, the movie is working to packed homes throughout Tamil Nadu.
Rakesh feels that he can’t do a lot about Master hitting Amazon Prime Video in about 48 hours, however he now is aware of the way to keep away from such pitfalls sooner or later. “It is ultimately a producer’s choice on what to do with his movie. But we need more transparency. If we were told that this film would come out on OTT within 20 days of its release, then we would have agreed upon different terms to maximise our profits,” he rued.

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Girish Johar, a widely known producer and commerce analyst, concurs. He stated, “I think it is a little too early to release on OTT. There should be a set of norms that need to be settled among the makers, OTT (platforms), and exhibitors to avoid unnecessary confusion.”
He opined that the producers nonetheless had the time to renegotiate the phrases with the streaming platform and push the movie’s OTT premiere by not less than two weeks. “This is more of a personal choice of the makers,” Johar added.
It is price noting that Telugu star Ravi Teja’s newest movie Krack, which launched on January 9, was set to debut on streaming service Aha on January 29. However, its OTT launch was pushed to February 5, contemplating that the film was nonetheless drawing the viewers to cinema halls within the Telugu states.
“I think four weeks would have been a more rational time as it would have allowed the theatres to do optimal monetization of a film like this, which has long legs. The cinemas could have continued to collect well in the forthcoming weeks as well,” stated exhibitor Akshaye Rathi, who owns a sequence of cinemas in Maharashtra and Chattisgarh.

The buzz is that the producers have already diminished distribution circuit costs for Master by about 20 per cent to compensate for the drop within the enterprise on the field workplace brought on by its OTT launch. “We understand the decision. The producers held onto the film for so long, and there was a cost for it. They need to make up for all that. That’s why they have probably done it. It is justified to some extent,” Akshaye added.
It is noteworthy that Master exceeded all expectations when it comes to ticket gross sales throughout the nation. All these concerned within the distribution and exhibition of the movie have already both broken-even or made some income. What its OTT launch does is, it impacts future income.
“I totally hope that our fraternity can look at the long term, rather than jumping on the short term gains and damaging the future of our fraternity,” Akshaye Rathi concluded.