Leading Production House, Mythri Movie Makers is foraying into film distribution in Nizam. They are opening their distribution today in Madhapur. Their Sankranthi releases – Waltair Veerayya and Veera Simha Reddy will be their first releases.
Mythri is the latest entrant into the Nizam market where Dil Raju and Asian Suniel have a stronghold. Mythri used to give its movies to Dil Raju regularly but then, they decided to go their own way.
Tirupati Sasi, a distributor of Ceeded and Nellore has been overseeing the release affairs of Mythri in Ceeded for quite some time. He is going to play a key role in this distribution office. He is also said to be the 50% partner in the office with producers at Mythri and their friends pitching in the remaining.
Why A Own Office for Mythri?
Mythri has a continuous flow of films around the year. Their hit percentage is also relatively high. They are not comfortable shelling out big amounts as commissions on every film, especially the biggies.
The distribution in Nizam is very opaque. For an instance, if an exhibitor in RTC X Roads charges One Lakh Rupees rent and gets a Share for four weeks on that rent. In the name of big distributors, the rent is charged at 1.25 Lakh or more. If the same exhibitor wants to play the film for a couple of weeks more, the same big distributor charges a Percentage basis from the exhibitor, but shows a deficit or no share to the producer. Mythri wants to overcome all these problems with their own office.
Do Mythri Have Theaters?
Even after Mythri has an office in Nizam, Dil Raju and Asian Suniel still will have a major say in Nizam. There are very few theaters that are operating independently. But Mythri hopes the muscle of their production house will do the trick for them. At the end of the day, which exhibitor wants a Vijay film over a Chiranjeevi film or a Balakrishna film? Mythri believes they have blockbuster content in hand and they are confident that exhibitors will make the right decision.
The reason why Dil Raju is popular with exhibitors is that he can ensure a continuous flow of films in their theaters. Mythri is a banner that can ensure that. But Dil Raju is known for acquiring films of other production as well. Mythri has to gain confidence on that front. They may face initial hiccups for Sankranthi and there will be pressure on them to reach out to Dil Raju or Suniel. The own office will be a success only if they resist that temptation.
The Other Side:
There are a few players in the past who tried their hand at distribution but failed. It is not an easy game. A producer makes money when he sells his film to distributors. In the trade of a big film, the distributor carries the highest risk followed by the exhibitor and then, the producer. If the producer and distributor are the same, the risk goes up exponentially.
In an industry with less than a 10% success rate, this is extremely risky. There is a chance that the profit of 4-5 films is gone with a single flop.
Ramanaidu and Mayuri previously used to do everything – production, distribution, and exhibition trusting their content. But the risk has increased exponentially in recent years. We have seen some big names ambitiously foray into distribution but only to perish.
Initially, they will not get advances. They may be only offered theaters and be asked to take shares. Dil Raju and Asian Suniel can get advances because they give the confidence of continuous flow of films in theaters and advances can be always ‘adjusted’ if the need arises. Mythri will have an initial struggle in gaining confidence. Furthermore, they have to fight the establishment in their journey forward. So, the road is extremely risky. Mythri with deep pockets and the kind of films they are making and the pace at which they are making, certainly stand a better chance than those who previously tried doing it.