Bollywood actor Hrithik Roshanstarrer 'Agneepath' is up for release in 2012, but it has already recovered close to 60% of its production cost by way of satellite rights. Sources confirm that the movie has been sold to a television channel for a staggering Rs 41 crore.
"We have acquired satellite rights of 'Agneepath' but cannot disclose terms of the deal," Jayantilal Gada, CMD of Pen India, the agency that acquires satellite rights for Zee Cinema, said.
The trend of selling the satellite rights of a film much before release may not be new but the money involved in buying blockbuster titles has gone up by about 200%, says independent distributor and trade analyst Suniel Wadhwa. "Every two years, the prices go up based on the scale and the banner of the movie, along with its production cost," Wadhwa explains.
Aamir Khan's 'Dhuan', also slated for a 2012 release, has been sold for Rs 40 crore. Satellite channels are acquiring films as and when they are being announced and parking titles with themselves in advance. Rights are acquired either from studios or independent producers. Earlier, a five-year term was the norm but now this can extend between seven to 12 years, depending on the film. All recent titles sold to TV channels have alockin for seven years, with the exception of 'Double Dhamaal', 'Singham' and 'Bodyguard', which were sold for five years only. "Aggressive negotiation takes place for internet, wireless and video-on-demand rights," says an industry source, adding that big upcoming titles are either being negotiated or have been sold.
"In most cases, satellite prices make up for about 40% of the total cost of making the film," says the source.
Ajay Devgan's blockbuster 'Singham' managed a TRP of 8 on its first TV telecast. "Traditionally, action, family and children's films get good TRPs," says Gada. Broadcasters are willing to offer Salman Khan's 'Ek Tha Tiger' even more than what 'Agneepath' has fetched for its producers.
"Acquisition costs have become unrealistic and unsustainable," says Wadhwa. It's a win-win situation for the producers, though. Satellite rights of a film that did average ('Bbuddah Hoga Tera Baap') or below average ('Rascals') business would have cost channels Rs 14-20 crore. Even films like 'Hum Tum Shabana' and 'My Friend Pinto' have sold for between Rs 5-7 crore.
