Amitabh Bachchan, Ayushmann Khurrana starrer Gulabo Sitabo to be release on amazon prime as a digital premiere. COVID-19 is forcing may industries to write a rule of existence at least in this inevitable moment.
Digital releases of feature film in Bollywood is one of the new rule the film industry is writing. In this unprecedented global crisis for film producers digital release is the only silvering available. Gulabo Sitabo is all set to be released 12th June 2020 directly on Amazon Prime Video as a digital premiere. And this is not a one-off case as many other producers are exploring the idea of going digital.
Nawazuddin Siddiqui’s Ghoomketu will release on May 22 on Zee5 while producer Anand Pandit is considering releasing his venture Chehre, starring Amitabh Bachchan, on a video streaming platform. Other regional producers of Bengali, Tamil, films etc are also getting ready to go for direct OTT release. This new distribution rule of films are going to be a big challenge for the theater industry, which shows no signs of resuming business anytime soon.
Exhibitors have been asking producers to respect the 60-day window between a theatrical and an OTT release. Recently, Multiplex Association of India (MAI) had appealed to all content creators, producers, studios to support the exhibition sector by holding and releasing their films in theaters.
The MAI in its statement added that the combination of pent-up demand and new movies would boost film business and contribute massively in reviving the industry.
According to a note by Karan Taurani, Vice President, Elara Capital, the cost of production of Gulabo Sitabo is estimated at Rs 30 to Rs 35 crore and this is excluding promotional expense.
He estimates that OTTs that are acquiring films for direct to digital release may not be paying more than 20 percent to 30 percent over the cost of production.
OTTs also have limited budgets for movie acquisition, he said.
Yet he thinks that more small and medium size films will see go directly on digital platforms if producers are unable to hold on.
Along with digital rights, makers of Gulabo Sitabo can earn by selling satellite rights but this will be 50 percent lesser than the amount of digital rights as it is the second window.
“Overall Gulabo Sitabo will be able to make an ROI of around 40 percent to 50 percent,” he said.
