Exclusive: ‘Varanasi’ begins massive theatrical, OTT negotiations

SS Rajamouli’s much-awaited global project “Varanasi,” starring Mahesh Babu and Priyanka Chopra, is scheduled to hit theatres on April 7, 2027. Though nearly 14 months remain for release and the film’s shoot is yet to cross the 50 percent mark, business discussions have already begun in full swing.

Our sources reveal that the makers have initiated theatrical and non-theatrical negotiations, setting the stage for what could become one of the biggest pre-release business deals in Indian cinema history.

Typically, big-budget films begin aggressive promotional strategies three to four months before release. However, “Varanasi” has already generated significant buzz more than a year in advance. Sources indicate that producers KL Narayana and SS Karthikeya have started discussions with major distribution players, especially for Nizam and overseas territories.

Nizam Deal: Record numbers being quoted

The Nizam distribution rights have sparked intense competition.

– Dil Raju reportedly quoted a massive amount for the territory.

– However, the producers are said to be demanding an even higher price.

– As a result, Dil Raju has stepped back from active negotiations.

– Mythri Movie Makers has reportedly offered more than Dil Raju, but no agreement has been finalized yet.

If the Nizam deal closes at the quoted figures, trade analysts believe it could rewrite distribution records in India.

Overseas rights

Interestingly, a major Hollywood studio has expressed interest in handling overseas distribution. Traditional Telugu overseas buyers have reportedly offered figures higher than what “RRR” fetched, but the makers are holding out for a bigger valuation. Negotiations are currently stalled.

Netflix Deal

On the digital front, Netflix is said to be in advanced talks to acquire the post-theatrical streaming rights. However, pricing remains the biggest hurdle. Rajamouli is reportedly expecting Rs 500+ crore for OTT rights.

Given the current contraction in the streaming market, even a Rs 300 crore deal would be historic for Indian cinema. When the project was launched, expectations reportedly touched Rs 600 crore, but market realities have shifted since then. Industry insiders suggest that if Netflix offers a figure in the Rs 300 to 400 crore range, the team may consider closing the deal.

At present, no other OTT platform appears financially positioned to match such numbers.

Trade observers believe the ongoing buzz, including discussions around massive budgets and international positioning, may be part of a broader strategy to strengthen valuation during negotiations.

With Rajamouli’s track record after “Baahubali” and “RRR,” expectations are sky-high. Whether “Varanasi” sets new business benchmarks remains to be seen.