No more 'NRA', a huge blow to biggies!

Movie business might undergo many changes post lockdown. We may not hear the fancy rights, hefty amounts for a movie theatrical rights henceforth.

Distributors will not come forward to buy theatrical rights for huge prices as they have been doing so far. The biggies that are currently under production will be affected severely. Agreements will be rewritten; the advance amounts will be taken back.

No Non-Recoverable Advance

More importantly, the business practice of ‘Non-Recoverable Advance’ (NRA) may cease to exist. No distributor will now dare offer NRA to any producer to buy the rights of one area. Until the situation becomes normalcy, distributors would only agree to either ‘commission’ basis release or buy for lower prices.

Number of seats to be reduced

The theaters and multiplexes are expected to start operations with fewer seats by maintaining physical distance guidelines and also reducing the number of shows in a day until the entire world recovers from coronavirus. The trade pundits, these guidelines will continue at least for another year. Thus the revenue will dwindle drastically. The ‘old prices’ will not be applicable now.

From the past few years, the Telugu Film industry has been seeing exponential growth in terms of collections and overall business. This is why Telugu big star movies are being made in the range of Rs 150 to Rs 350 Cr budgets. Not only the domestic market, but even the overseas market has also been expanded for Telugu films. This year a simple family film like ‘Ala Vaikunthapurramloo’ had collected on par with a graphical extravaganza ‘Baahubali’. But now, the revenue will not be the same.

Huge blow to RRR & Prabhas20

And the producers of Rajamouli’s ‘RRR’ and ‘Prabhas20’ will suffer heavily if the aforementioned situation continues for long. This is why Rajamouli is in favor of postponing the film to the second half of 2021. He is expecting that things would become normal and the people will flock to the theaters next year. As per Rajamouli and other big producers, releasing big movies in 2020 or early 2021 is not a viable option unless people come to the theaters without fear.

At one time, Dil Raju had offered whopping Rs 75 Crore to ‘RRR’ Nizam theatrical rights and also paid a certain advance. But Dil Raju will definitely sit at the table to renegotiate. Similarly, ‘Prabhas20’ is hoping business for the movie in Pan-India level on par with ‘Saaho’. But that to happen, Prabhas needs to wait for another year.

However, it is certain that the movie business, the NRA deals, the hefty advances would be a thing of the past. The new way of business needs to be implemented.

By Jalapathy Gudelli