Devara pre-release business:- This year has been marked by significant delays in the Telugu film industry. Major movies aren’t releasing as planned creating a frustrating situation for fans. Films featuring popular stars like Pawan Kalyan, Ram Charan, and Allu Arjun have been postponed repeatedly. Pawan Kalyan’s much-anticipated OG has been pushed to next year. Ram Charan’s Game Changer is still without a definite release date and Pushpa 2, originally set for December last year is now expected this year December.
What remains on the horizon are Prabhas’s Kalki 2898AD and NTR’s Devara. Kalki 2898AD is scheduled for release on June 27, while Devara will follow in September with a three-month gap between the two. These are the big releases fans are eagerly waiting for although there will be medium-scale films in between. The absence of other major releases has made Devara highly anticipated, creating a competitive pre-release business environment.
Producer Naga Vamshi has acquired the distribution rights for Devara in the Telugu states for around 110 to 115 crores. The film is now being sold to distributors: Andhra for 50 to 55 crores, Nizam for 45 crores, and seeded areas for 23 crores. Initially, there were doubts about these high rates but with the postponement of Pushpa 2 distributors are now showing interest and competing for the film.
However, the business strategy of this film involved risks and benefits. The producer sold the film for more than 115 crores on a non-returnable advance basis. This single-point sale reduces many logistical headaches but a commission goes to the buyer along with expenses like GST. Selling the film directly would mean a 20 percent commission loss for the producer. By selling it separately, an additional 25 crores in commission could be lost. This method, though risky can yield significant profits if the film succeeds.
Naga Vamshi’s strategy of buying at 115 crores and selling to distributors involves both profit and risk. If the film does well, the commissions alone could reach up to crores of rupees. However, if it fails future films from Sitara might need to be sold at reduced rates to adjust to buyer expectations.
