Over the last year or two, there has been escalating media coverage how remunerations demanded by Bollywood stars are making Hindi film-making an increasingly-difficult business. The top rung of stars, such as the three Khans, have either turned producers, or forgone their fee against what’s called a ‘backend’ deal (typically referring to a distribution or licensing deal), the next line continues to operate on fixed fee structures, where the numbers increased significantly since before the pandemic. There’s also a lot of conversation about star entourages, and how ridiculous their costs are.
Now all this would just be gossip, if the stars could justify these fees through their box-office performance. But that’s not happening at all. The biggest ‘Hindi’ language film of the first six months of 2024 is likely to be the dubbed Hindi version of Kalki 2898 AD, which released yesterday. A non-starcast, concept-led film Munjya is set to cross the Rs 100 cr mark, even as star-led titles made at much higher budgets, such as Bade Miyan Chote Miyan, Maidaan, and Chandu Champion, have fallen well short.
For a year or two after the pandemic, streaming platforms were in a mad rush to acquire theatrical films. Since these deals happened before the theatrical release, the star power came into the picture. With time, and facing their own share of challenges related to stagnant subscriber growth and profitability, streamers have become conscious, and are often insisting on deal structures that have box office linkages.The message is clear: If the star cannot pull an audience in the theatres, he (or she) is not ‘saleable’ on OTT either.
Movie channels in linear television have been on the decline anyway in the post-NTO world. Licence fees for satellite rights is no longer a prominent item on the P&L of most films. The reliance on theatrical (box-office) revenues is only going to go up in the coming year or two. And all evidence suggests that stars cannot pull in the audience anymore on their own strength, and need the story or the concept to work for the film to stand any chance on the theatrical front.
It is hard to imagine how any of this is sustainable. Hindi film producers cannot even make films that go direct to OTT anymore. There is no demand for such films, either from the streamer or the audience side. There is only one way out: Stars must understand that the audiences and the marketplace has evolved, and bite into the humble pie that a pay cut can be. They can also be a lot more prudent in their film selection, aligning it with evolving audience tastes and expectations in a digital-first, post-pandemic era.
Whether that will happen is anyone’s guess.