Leo: WOW! The Lokesh Kanagaraj Film Garners The HIGHEST OTT Profits In The South Film Industry! (Details Inside)
Lalit Kumar announced that Netflix has made its largest investment in southern cinema to date by purchasing the digital rights to ‘Leo’, starring Thalapathy Vijay.
Sinjinee Roy | Updated On: Oct 30, 2023 05:53 PM IST
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‘Leo’, Thalapathy Vijay's newest film, has done well at the box office. Recently, producer Lalit Kumar of Seven Screen Studio confirmed the film's record-breaking arrangement with Netflix, its streaming partner.
Lalit disclosed that the streaming company has made its largest investment in southern film to date by purchasing the digital rights to ‘Leo’. "Netflix paid the most money for 'Leo'. "Not just Tamil movies, but no other South Indian language film was purchased by Netflix at this price', Lalit stated.
This strategic decision appears to mirror Netflix's aim to broaden its audience base in the southern states. The streaming service has been working hard to create a greater presence in India, particularly among low-cost users in the south.
"This is their first endeavour. It's a type of experiment. They were intrigued. I gave them a price, and they counter-offered. Finally, we both agreed on a figure. Given 'Leo's' global reach, I believe this collaboration will be advantageous for Netflix," Lalit said.
The sale of streaming rights has become an important income source for producers in order to recoup their costs. Pre-release agreements with OTT platforms also allow producers to make larger investments. According to industry estimates, digital rights earnings may typically cover up to 50% of a film's production costs. In fact, the cash earned by streaming rights currently exceeds the amount generated by selling satellite rights for films across the country.
Meanwhile, ‘Leo’ has done exceptionally well in ticket sales throughout its first week. The film is reported to have earned more than Rs 500 crore from international ticket sales and is anticipated to remain a major attraction in theatres till the conclusion of the Diwali festival.
(Also Read: Lokiverse 2.0 Theme Video Finally OUT! Thalapathy Vijay Looks INTENSE In His Leo Avatar! (Watch Video))
According to sources, following a four-week theatrical run, ‘Leo’ will be accessible for streaming on Netflix. The formal confirmation of Leo's OTT release is still pending.
