10th January 2005

Nagarjuna is not only the most charming star of Telugu cinema but also the saviest businessman. He set another trend in Telugu film satellite rights business by going ahead and selling his blockbuster film 'Satyam' for "Single Telecast" rights for 20 lakhs to MAA TV. This film would be telecast on the eve of Sankranthi in MAA TV.

The AP Film Producers Council originally proposed a recommendation that the perpetual rights need to be sold to satellite channels, in specified formats that do not allow any ambiguity.

By acquiring "perpetual" rights (usually for 7 years), satellite channels could use the content (songs, comedy scenes and important episodes of the film) in various programs. They can also telecast the film unlimited times during this 7 year period.

When contacted Annapurna studios, Mr. Chalasani Ramesh confirmed that the film 'Satyam' was sold for Rs. 20 lakhs for "single time" telecast to MAA TV channel. There were originally offers of Rs. 35 lakhs for 7-years of perpetual rights for Satyam film. General opinion might be that Annapurna Studios is losing 15 lakhs on it initially. But this single telecast strategy is expected to fetch the studio up to Rs 1 crore on satellite rights in the long run.

The big banners usually keep the film's satellite rights to themselves instead of selling it for under-price. However, small production houses in general tend to run out of funds at the time of films' release and get inclined to sell the telecast rights for any upfront offer.

This trend set by Nagarjuna might appear suitable to big banners in the beginning. But over a period of a time, this would most probably become an industry standard that would be followed by the small filmmakers also, at the same time benefiting satellite channels as well, by reducing the upfront payment for telecast rights and leveling the satellite field as multiple channels can acquire these non-perpetual film rights.

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