The Big Deal: Salman Khan - Star Network tie up
In that case, a time will come when even the channel (Star Network) would manipulate their decision of whether they want to telecast a Salman Khan film. "What if in these five years Salman's films don't work? The channel will then have to decide if they want to bear the losses and air his films even if they flop," establishes Gada.
Earlier there have been many instances where TV channels have bought rights of the films which were yet to release. Even after such films bombed at the box office, the television networks have continued to screen them on TV, the recent example being Players.
Today, the cost of buying the satellite right of a big budget Bollywood movie, on an average is Rs. 50 crore. Assuming that if every year, two Salman Khan starrer's release, then Rs. 500 crore for five years is justifiable. While some call it an impractical deal, this new business model works safe for both the parties.
According to Tiwari, the growing inflation may see the price of buying the satellite right rise to Rs. 60 crore or more instead of the estimated cost of Rs. 50 crore. Since Star Gold has already signed a contract for Salman Khan's films, they shall not fall prey to the rising cost for at least five years, no matter how big a hit the film is.
On the other hand, even if Khan delivers a flop at the box-office, he will not have to worry about the recovery of his film by way of satellite rights, considering that he has already sold his project to Star Network at the rate of Rs. 50 crore.
A win-win situation indeed.