Thug Life Makers Fined ₹25 Lakh Over Early OTT Release
The makers of the high-profile film Thug Life, starring Kamal Haasan and directed by Mani Ratnam, have been fined ₹25 lakh by multiplex associations for breaching the mandatory eight-week theatrical window. The penalty comes after the film was released on Netflix just four weeks after its theatrical debut, in violation of industry norms.
Thug Life, released on June 5, underperformed at the box office despite the star power of Haasan and Ratnam. Reports indicate that the film collected under ₹100 crore globally, significantly below expectations given its reported production and marketing budget. The underwhelming performance prompted the producers to expedite its availability on Netflix in hopes of recovering losses through OTT streaming revenue.
Initially, the film’s digital rights were sold to Netflix for approximately ₹130 crore. However, given the disappointing theatrical run, the deal was renegotiated and eventually settled at a lower figure of around ₹110 crore. The early release was viewed as a strategy to mitigate losses and ensure a quicker financial turnaround. But this decision did not sit well with multiplex chains.
According to the rules enforced by the National Multiplex Association, a film is expected to adhere to an eight-week exclusive theatrical window before being made available on digital platforms. The premature OTT release by Thug Life violated this agreement, resulting in the ₹25 lakh fine. Additionally, the producers are understood to have forfeited their remaining theatrical share from Hindi-language screenings.
This isn’t the first time such action has been taken. Earlier, the makers of Indian 2, another Tamil film, faced similar penalties for a similar breach. These fines are intended to preserve the commercial sanctity of theatrical releases, which multiplexes argue are critical for sustaining cinema exhibition, especially in Hindi-speaking regions where footfalls are crucial for box office viability.
The Thug Life episode underscores the ongoing tug-of-war between theatre chains and OTT platforms. While digital streaming offers an alternative revenue path, especially when theatrical returns falter, multiplexes are increasingly asserting their rights and pushing back against early releases that undercut box office performance. This fine is not just punitive—it signals a growing rigidity in contractual norms and a possible escalation in theatre-OTT friction in the Indian film industry.
