Renowned Tamil filmmaker Vetrimaaran recently raised concerns about the rising salaries of film stars, blaming the impact of streaming platforms for inflating the financial dynamics in the industry. In a roundtable interview hosted by The Hollywood Reporter India, he cited the pandemic-era surge in spending by OTT platforms like Netflix and Amazon Prime Video, which paid as much as Rs 120 crore for streaming rights of films starring superstars like Rajinikanth and Vijay. Vetrimaaran believes this has led to an unsustainable financial model that continues to affect the theatrical market post-pandemic.
Vetrimaaran explained how the rush of streaming platforms to secure big-budget films during the pandemic created an artificial inflation in actor salaries and production budgets. “It is not the theatrical box office that is failing, it is the inflation created by the OTT platforms that is failing,” he said. “They barged in during pandemic times and said, ‘We’ll pay Rs 120 crore for Rajinikanth and Vijay’s films, you make it.’ Then, the budgets became bigger, the salaries became bigger.”
However, Vetrimaaran pointed out that this model, while lucrative initially, has now shown signs of unsustainability. Streaming platforms, he said, are beginning to reduce the amounts they’re willing to pay, leaving producers and actors accustomed to high-budget projects in a dilemma. “Within a few months, they realized that it is not sustainable. Now, they’re saying, ‘We can’t give that much’. But producers have gotten used to making bigger films, and actors have gotten used to taking bigger salaries. What to do now?” Vetrimaaran added.
He went on to highlight the success of smaller, more modestly budgeted films in proving that the theatrical market remains strong. Praising director Mari Selvaraj’s film Vaazhai, he emphasized how it earned twice its budget back through theatrical revenue alone, demonstrating that the traditional theatrical model is still viable. “The film’s lifetime number just in Tamil Nadu is going to be twice the budget. Box office is there, but we need to realign ourselves… We need to directly address the theatrical audience, like we used to, and not the OTT audience.”
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Vetrimaaran also criticized streaming platforms for their increasing self-censorship, noting how their focus on avoiding offense to certain communities has restricted creative expression. “They don’t want to show people eating beef, they say this community will get offended, that religion will be offended,” he said. While these platforms used to be major financiers, their growing influence on content decisions has become problematic, prompting Vetrimaaran to advocate for a return to the more straightforward theatrical model.
This trend of inflation fueled by streaming platforms is not unique to India. Hollywood too experienced a similar wave, with major stars being paid upfront salaries that included backend deals, often leading to inflated budgets for projects. One notable example is Brad Pitt and George Clooney, who reportedly earned $35 million each for their upcoming Apple TV+ film Wolfs. However, Hollywood has already begun to adjust to this reality, with streaming services like Netflix becoming more transparent about viewership numbers to justify such large payouts.
Vetrimaaran’s remarks also reflect his personal experience with ballooning budgets. He admitted in a previous interview that his latest project, Viduthalai, which started as a Rs 4.5 crore film, had overshot its budget by Rs 60 crore and is still incomplete four years later. The project was eventually split into two parts, but the filmmaker’s struggle with escalating costs mirrors the wider industry challenge.
Superstar Rajinikanth, whose recent film Jailer was a massive success, and Vijay, who starred in the underperforming GOAT, are among the top actors benefiting from the OTT-fueled rise in remuneration. However, Vetrimaaran’s critique serves as a warning about the potential long-term damage this inflation could cause to the industry.
As the film industry navigates this shifting landscape, Vetrimaaran’s call for a reduction in star salaries and a realignment of priorities toward theatrical audiences could lead to a recalibration of the business model, one that balances sustainability with star power.
