Netflix Bags Mani Ratnam & Mahesh Babu Projects Early, Marking OTT Shift

Netflix's Early Acquisitions Signal New OTT Trend in South Cinema

Netflix’s pre-release acquisition of Mani Ratnam’s untitled film starring Vijay Sethupathi and Sai Pallavi, alongside the early digital deal for Mahesh Babu-backed 'Rao Bahadur', is turning heads in the Telugu and Tamil film industries. Both projects secured their streaming rights before even hitting theatres, suggesting a notable shift in how mid-range films are navigating the evolving OTT landscape.

Mani Ratnam, a director whose last outing 'Thug Life' did not meet expectations, is teaming up with Vijay Sethupathi and Sai Pallavi for a new venture. Despite the director’s legendary status and the star power involved, the film’s OTT rights were reportedly sold to Netflix for ₹20 crores—a figure that has sparked widespread discussion. The project, with music by AR Rahman and produced by Madras Talkies in association with Lyca Productions and India Talkies, is yet to begin filming. The modest sale price, especially given the stature of the names attached, has led to intense scrutiny and debate across Tollywood and social media. Many fans and industry observers are questioning why such a high-profile collaboration fetched a relatively low digital price, with some pointing to the current volatility in the OTT market.

Industry insiders confirm that the streaming sector is facing a downturn, making it increasingly difficult for even big-ticket films to secure lucrative digital deals. As one source noted, "the OTT market has crashed big time, and closing the deal itself has now become a big task." In this climate, the fact that Mani Ratnam’s film managed to lock in a digital partner before production began is being seen as a significant achievement. Online discussions reflect both surprise at the deal’s value and recognition of the challenging environment for OTT negotiations.

A similar story is unfolding with 'Rao Bahadur', a psychological drama produced by Mahesh Babu and Namrata Shirodkar under GMB Entertainment, in association with A+S Movies and Sri Chakraas Entertainments. Starring Satya Dev and Deepa Thomas, and directed by Venkatesh Maha, the film clinched a ₹7 crore deal with Netflix ahead of its theatrical release. Notably, the agreement includes a performance-based clause, meaning the payout could increase if the film performs well at the box office. This kind of arrangement is rare for small-budget films, especially in today’s competitive OTT market, where many such projects struggle to attract streaming partners. Industry voices attribute the early success of 'Rao Bahadur' in part to Mahesh Babu’s brand value, which has helped draw attention and confidence from digital platforms.

These back-to-back pre-release deals underscore a growing trend: mid-range Telugu and Tamil films are increasingly securing OTT rights before theatrical release, even as the market for such agreements becomes more challenging. As the industry adapts to shifting viewer habits and streaming economics, all eyes will be on how these films perform both at the box office and on digital platforms, potentially setting the tone for future collaborations and negotiations.