Thread by @Nn84Naganatha

In 2022, Kollywood producers have largely benifited due to Red Giant movies,
I tried a long thread to explain d reason behind majority of producers keen to join hands with Red giant movies for TN release..
Do read out⏬⬇️

How does the industry work:
1. Producer sells the movie before release on a MG basis which gives him a gaurantee revenue irrespective of the performance and d risk passes to sub distributors
2. The producer releases on his own on a distribution basis means d producer takes d risk

How does Red Giant work:
Red Giant on default work on distribution basis for a commission ranging frm 5-10% on final theatrical share and handover the remaining 90-95% of the final share directly to d producer which in turn is d revenue generated for the producer from TN theatres

So in such case if d producer gives the movie to Red Giant movies it means the movie is not sold instead the producer release it on his own which in turn gives the producer an opportunity for a maximum of upside in revenue if the content clicks.

The next question - y the producers don't sell the movies like they used to do it before and safely sit on a profit before release instead of waiting for the full run to know the extent of revenue from theatricals.

The reason for it :
Digital, satellite market boom post COVID lockdown :
1. The Digital rights sold now are almost 3-5 times more of wat was sold before 2021, so due to this boom now a days the producer recovers almost complete cost of production just by non theatrical rights

So produces gets a chance to release d movie without d principal risk.
To be noted before 2021, normally the non theatrical contributes to 50-60% of d budget recovery but now it's 70-100%

2. Producers belief in their content to win big in BO. In such case if sold on MG basis the

Chuck of profits goes to sub distributors and on the worst case if movie fails causes loss to distributors and which might cause trouble to producers. So produces now days prefer to take full responsibility and release on their own.

Next question y does most choose Red Giant over others:
- They have d best distribution network with offices in all areas with a centralised control in Chennai, which makes producer work easy of a 1 point contact to follow up which is better to following multiple sub distributors

- Wen u sell Digital to Netflix, Amazon, Sony LIV, Aha they just buy digital rights, the producer needs to sell Satellite separately to others, so d red Giant group also purchase satellite for Kalaigar TV which is an added advantage for producer in choosing them.

Now let's look at the movies released by Red Giant movies:
1. #FIR - The movie could have had a sale value of 3crs before release, but the movie collected approximately 6+ which means more than 50% additional revenue for Producer.

2. #KVRK - The movie could have had a sale value of 13-15crs before release but the movie collected approximately 18+.

3. #DON - The movie could have had a sale value of 25crs, the producer released on his own and the movie ended up as career highest for a SK movie close to 40crs share.
Digital - Netflix
Satellite - Kalaigar

4. #Vikram - The producer expected a minimum of 30-35crs from TN but tat time it itself was considered high by trade people, but movie ended up collecting close 90+ TN theatrical share.

5. #Thiruchitrampalam - Normal Dhanush movie sells in d rage of 15-20 depending on hype around d movie, but it ended up collecting 30+crs in TN.

6. #PS1 - Production expectations ver 40crs before release but it ended up 100+ crs in theatrical share.

7. #VTK - Sale value would have been around 15 before release but it ended up close to 18crs in theatrical revenue from TN.
Digital - Amazon
Satellite - Kalaigar

8. #Sardar - Normally would have had a sale value of 15-18crs, but the movie the ended up doing close to 27 theatrical share..
Digital - Aha
Satellite - Kalaigar

9. #LoveToday - A debut hero movie which could have had a maximum sale value of 5crs. The producer recovered the total cost of production via just Digital rights, released the movie on own expecting 8-10 but the movie ended up collecting close to 30crs.
Satellite - Kalaigar

10. #Gattakusthi did way better than the expectations of the pre release sale value..
Satellite - Kalaigar TV.

All movies does not win big, movies like Captain, Cobra, Coffee with Kadhal didn't no do well in BO since the content didn't click and so the producer gets low revenue due to their poor content.
So it's like U make a good content u get maximum revenue or else...

This is d reason why majority of big companies like Sun, Lyca, RajKamal, Vels, AGS, Prince Pictures choose this way of release in comparison to traditional sell before release. Strategy from such companies are like if content clicks we win big or if not we make less.

Further to be noted no Hollywood studios like Disney, Warner, Viacom, Universal or Bollywood companies like Yash Raj , red chillies, Dharma sell their movies, they always release on their own, so this Red Giant growth is an indication of Kollywood wanting to move tat way..✌️