Varanasi and Raaka hit roadblock in OTT deal negotiations

“Varanasi” and “Raaka” are among the most anticipated Indian films currently in production, carrying enormous hype and expectations. With director SS Rajamouli regarded as the biggest brand in Indian cinema and Allu Arjun enjoying unprecedented pan-India popularity after the historic success of “Pushpa 2”, both films were expected to secure record-breaking OTT deals well before their theatrical releases.

“Pushpa 2” created box office history, particularly in North India, while its digital rights were reportedly acquired by Netflix for around Rs 270 crore. Riding on that success, industry expected even bigger streaming deals for Rajamouli’s “Varanasi” and Allu Arjun-Atlee’s “Raaka”.

However, the reality appears to be different.

According to sources, Rajamouli initially sought around Rs 500 crore for the OTT rights of “Varanasi”. As the Indian streaming market cooled and platforms became more cautious with acquisitions, the asking price was reportedly revised to Rs 350 crore. Even then, the deal has not been finalized.

Sources close to the development told TeluguCinema.com that Netflix is currently negotiating for a figure below Rs 250 crore. Whether both sides reach a consensus remains to be seen. The current OTT market scenario has reportedly come as a surprise to the makers. “Varanasi” stars Mahesh Babu, Priyanka Chopra Jonas, and Prithviraj Sukumaran in lead roles.

A similar situation is unfolding with “Raaka”, produced by Sun Pictures. After the phenomenal digital valuation of “Pushpa 2”, the makers initially expected an OTT deal worth around Rs 400 crore. However, the offers currently on the table are said to be below Rs 200 crore.

Despite the lower bids, the team remains optimistic about securing at least a deal comparable to the reported “Pushpa 2” valuation before the film’s release.

“Raaka”, directed by Atlee, stars Allu Arjun, Deepika Padukone, and others in a sci-fi action entertainer.