Reality check: Netflix bought Kamal Haasan's KH233 OTT rights for Rs 125 crore?

Tamil superstar Kamal Haasan on Tuesday announced his next project, which has been tentatively titled KH233 with a tagline Ready to Rule . The announcement teaser showed a silhouette of Kamal wielding a torch lamp like a war bugle ready to rally the troops. Interestingly, this torchlight holds significance as it mirrors the emblem of Kamal's political party. Clearly, Kamal is leaving no room for subtlety. 

Speculation quickly arose regarding the streaming rights for the upcoming film, with rumours suggesting that Netflix had secured the deal even before production commenced. Reports claimed that Netflix had acquired the post-theatrical release streaming rights for an astounding Rs 125 crore. However, industry insiders have shed light on the reality behind such pre-theatrical agreements and the calculations involved.

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"It's all rumours," said senior film journalist Sreedhar Pillai. 

"These are all highly inflated figures. And (even if it's true) this is not a guaranteed price." He explained that streaming platforms typically do not disburse the full amount in a single payment but rather in instalments, subject to specific terms and conditions. The final price received by the producers hinges on various factors, including the film's commercial success, critical reception, and viewership on the digital platform.

 "A producer might tell you that he got Rs 120 crore, but he won't tell you that it all depends on the number of views the film gets and that amount is paid over 18 months," he added. 

This suggests that while a substantial base price may be agreed upon, the ultimate payout depends on the film's performance and viewership metrics. For smaller films, streaming platforms may opt for a one-time lump sum payment for digital rights. However, for high-profile projects like Kamal's, success both at the box office and on OTT platforms becomes crucial to maximize returns.

"These things are happening. Even before the announcement of Leo, Netflix bought its streaming rights. But, I don't think that this film (KH233) will fetch a three-figure number for its digital rights. Not just in the south, a star also needs to command a huge market in the Hindi belt to achieve that kind of a business," said Deepak Kodela, Hyderabad-based trade analyst. 

Filmmaker H Vinoth is writing and directing Kamal's KH233. The filming will begin soon and is expected to arrive in cinemas early next year. Besides playing the lead role, Kamal is also bankrolling the movie under his home production banner, Raaj Kamal Films International.