Filmmakers are planning mega-budget big-screen spectacles across languages in the coming months despite a relatively volatile box office and uncertain business environment.
The producers of the two-part mythological epic Ramayana (the first instalment of which is to be released in November) and SS Rajamouli’s Varanasi (scheduled for release in April next year) are banking on the ability of these stories to reach audiences beyond Indians, and south Asians in general. Both films are among the titles estimated to cost upwards of ₹1,000 crore each to make.
They are also looking to create cinematic universes with spin-offs and merchandise offers, besides expectations of a smooth recovery from satellite and digital rights, even though broadcasters and streaming platforms have slowed down acquisitions.
“The scale of these projects reflects a structural shift in how Indian cinema is positioning itself globally,” said Abishek S. Vyas, founder and CEO of AVS, a Dubai- and Mumbai-based arts and entertainment company. “What is driving these budgets is the belief that Indian stories can travel globally if mounted at a cinematic scale comparable to international tentpole productions.”
Large film projects now recover revenue from across multiple windows including global theatrical releases, satellite rights, streaming platform deals, music rights, international distribution and, in some cases, gaming, licensing and merchandising. When a film is positioned as a global spectacle, the international market becomes a much more meaningful revenue contributor as well, Vyas added.
“We have already seen this model work with several Indian films that have crossed hundreds of crores globally, while also generating substantial value through OTT and digital rights. The idea behind such projects is to create long tail intellectual property that extends beyond just one film and can potentially evolve into a franchise or global entertainment property,” Vyas explained.
Franchises such as Baahubali have demonstrated the ability of Indian stories to travel globally and create multiple revenue streams over the years. However, not only have streaming platforms and television broadcasters gone slow on acquisitions lately, even international distribution remains regularly impacted by geopolitical tensions.
No guarantee
The failure of big-budget films such as Yash Raj Films’ War 2 and Salman Khan’s Sikandar over the past year alone proves that scale is hardly a guarantee of success. However, experts are quick to point out that today, unless a film is truly larger than life, many audiences will refrain from going to theatres. With large televisions and streaming platforms offering great viewing experiences at home, people are happy to wait and watch films on their own screens.
“But when films offer spectacle and scale that cannot be replicated at home, audiences do turn up in big numbers,” television producer and director Nivedita Basu said. “We have seen that with films like RRR, KGF: Chapter 2 and Dhurandhar, which have been massive successes. It clearly shows that strong storytelling today needs to be backed by big visuals and scale to bring audiences into theatres. When cinema becomes an event experience, people are willing to step out and watch it on the big screen.”
The biggest challenge is that audiences today are extremely aware and compare Indian films with global cinema in terms of visual effects, storytelling and overall experience. Also, with very large budgets, the risk becomes extremely high, which means the film needs to perform strongly across multiple markets to justify its investment.
Ultimately, big visuals may bring audiences to theatres initially, but only strong storytelling can sustain the success of a large-scale film.
Strategic bet
According to film producer Anand Pandit, this is a business of resilience where success is not guaranteed, and every film is a strategic bet.
“Even streaming platforms are becoming very selective about the films they pick. Chances are if a film fails at the box office, it will lose out on lucrative streaming deals. You cannot rely only on satellite rights and international distribution to recover money,” Pandit said.
He said a film is essentially an IP asset and connecting with the audience is critical – that is where the real profit is. Many tentpole films did not live up to expectations because their thematic foundation was weak or some other factor did not work in their favour.
“But when the film connects with audiences, the numbers can be extraordinary,” Pandit added.