Box-office blues spur film studios to sew up deals with digital content houses

While Yash Raj Films (YRF) has announced a deal with Posham Pa Pictures, known for OTT titles like Kaala Paani and Maamla Legal Hai, Sajid Nadiadwala’s film production house Nadiadwala Grandson Entertainment and Banijay Asia, a part of Banijay Entertainment, have partnered to create original web series and films, with a total investment of ₹100 crore.

Entertainment industry experts say that such partnerships are a win-win for both, as the new players will help bring variety to the established film production companies’ libraries, while the latter have a better relationship with mainstream talent, including actors.

In many cases, these digital content houses could also attract financiers to back the projects, after Bollywood studios saw many of their films bomb at the box office, repelling fresh investments.

“Mainstream film studios have realised they need to have variety as far as their library goes, and some of them have really not seen their smaller scale films do well. So, they need to step out and find partners for small world stories at a time when everyone is looking at expansion in some form. One company can only do a finite job,” said a senior film producer, declining to be named.

Need for variety and niche stories

This producer added that even an established studio like YRF has tried its hand at small-budget, niche films like Titli and Detective Byomkesh Bakshy, but failed to find traction with the audiences. It can, however, bring distribution and monetization expertise to a company like Posham Pa, which wants to make a mark in the theatrical space.

In a statement to announce the collaboration, YRF had said, “This partnership is in line with YRF’s vision to build out a new creative business model under the company’s CEO, Akshaye Widhani, who is strategically building out the studio model within Yash Raj Films.”

To be sure, entertainment industry experts say such deals make business sense at a time when major production houses are short on cash, but want to mount films with big stars who often demand high fees. On the other hand, there are new-age companies that have funds but not the expertise or standing to make noise in the theatrical space.

“These companies have been brands for so many years, so anybody new would want to be associated with them. Plus, everyone wants to stay in the race at a time when an entity like Jio is dominant,” independent trade analyst Sreedhar Pillai said.

That said, it is likely that the mainstream studio would enjoy an upper hand in terms of revenue share and ownership of IP (intellectual property) as far as such deals go, many point out. “At the end of the day, it’s a good strategy for both to be able to tell more stories and divide the risks,” producer Yusuf Shaikh said.