In recent years, small-budget southern language films have achieved remarkable success, particularly through their OTT (Over-The-Top) streaming rights, following unexpected box office hits. Films like Premalu, Manjummel Boys, and Lover were initially overlooked by streaming platforms before their theatrical release. This caution stemmed from previous losses incurred from high-budget acquisitions. However, once these films excelled in theaters, they managed to secure streaming rights at nearly double the initial rates.
For instance, Manjummel Boys, a survival thriller made on a budget of less than ₹10 crore, grossed over ₹200 crore globally. Similarly, Premalu, a romantic comedy with a comparable budget, earned over ₹130 crore. Lover, a romantic drama made for under ₹5 crore, doubled its investment, grossing around ₹10 crore.
Streaming platform executives point out that a film’s success at the box office can significantly increase its value for OTT platforms, which are willing to pay up to 25% of the total box office collection for acquisition rights. A senior executive from a leading platform noted that successful films that haven’t secured a streaming deal before their theatrical release are in a better position to negotiate higher fees. These platforms prefer to invest in proven hits, especially those that resonate with their target audience.
Additionally OTT platforms often dub these films into multiple languages enhancing their reach. For example Disney+ Hotstar offers Manjummel Boys in Hindi, Tamil, Telugu, and Kannada in addition to its original Malayalam version. Similarly the Marathi hit Ved is available in Hindi on the platform, despite not being dubbed for theaters.
Mukesh Mehta, founder of Malayalam film production and distribution company E4 Entertainment states that while these sleeper hits earn more from streaming platforms than expected their rates still don’t match those of big star films. The general belief is that films featuring big stars attract more advertising revenue and viewership. However the success of these smaller films has defied expectations. Mehta suggested that earlier negotiations could have secured these films at a lower price.
Acquiring these surprise hits is a logical move for streaming platforms. These films come with a proven track record, and the cost of marketing them for theaters is lower compared to promoting new originals or direct-to-digital releases. Film producer and trade expert Girish Johar observed that while platforms need a regular influx of new content, the competition isn’t as fierce, making the acquisition rates more reasonable.
