Downfall of Tamil movies' Satellite Rights

Until very recently, satellite rights was one of the major revenue sources for Tamil movies as biggies fetched anywhere between Rs. 10 Crores and Rs.15 Crore. Recently, things have changed upside down for Tamil Industry with satellite rights becoming a stagnant market.

Dhanush's Maari and Mani Ratnam's OK Kanmani found no takers. The small budget hit movies are also facing similar issues as Indru Netru Naalai along with numerous others are also not sold. 

The Satellite rights are usually bought by 3 major entities -- Sun TV, Vijay TV and Jaya TV. Jaya TV usually shows interest on big budget movies of Kamal, Rajini and a few other top notch heroes. Due to recent challenges faced by Sun TV, Sun TV has also stopped buying new movies. This was the beginning of the problem. 

Producers Council rakes up issues with TV Channels

Producers council got into a tiff with Vijay TV during Vijay Awards claiming that Vijay TV is not buying the rights of small movies. Further aggravating the situation, Producer council has recently decided not to give promotional materials or advertisements to channels, unless they buy the satellite rights of all movies. The council has also restricted the maximum amount that should be spent on TV promotions to Rs 25 Lakh. To prove a point, Vijay TV has entirely stopped buying the satellite rights due to the unnecessary issues created by the Producer council. With no buyers now, the market has become stagnant.

Drop in TRP Ratings for New Movies

The channels are also blaming the steep drop in TRP ratings for new movie shows. The Saturday shows have hit an all-time low with Sunday shows marginally better. Viewers are not keen watching movies with so many interruptions.

TV channels and movies have always been interdependent on each other and this lack of revenue through Satellite rights has wiped away one of the biggest sources of revenue for Producers.