Recently, Telugu360 published an article on how the changed payout structure in overseas impacts the profits of big ticket film distributors. As the revenue percentage is slashed by a 10-15℅ due to the AMC – Carmike merger, distributors are not willing to pay hefty price for the overseas rights.
With the new revenue structure coming into effect very soon, distributors are not going aggressively to grab the rights of upcoming biggies. The Mahesh-Murugadoss film is one of the highly anticipated flicks in overseas in 2017. As reported earlier, the production house is quoting 25 Crores for North America rights. None of the distributors are willing to shell that much as every one is unsure as to how the new payouts play out. Also, due to some high profile disasters in 2016, exhibitors are not as excited about big movies. As no one is exactly sure what is optimum price after the revised rules, distributors are reluctant to bag the rights for the quoted price.
Distributors are offering 15-17 Crores( approx), but the producer is not compromising on the price. It remains to be seen if the producer budges on the price or finds a distributor who is going to take a gamble.