Thug Life Faces Rs 25 Lakh Fine for Early Netflix Release, Breaks Multiplex Rule

Kamal Haasan and Mani Ratnam’s film Thug Life has grabbed headlines again, but this time for breaching industry rules. After delivering a weak box office performance, the makers have decided to stream the film on Netflix just four weeks after its theatrical debut. This move has triggered a Rs 25 lakh fine from multiplex chains for breaking the 8-week gap rule followed for Hindi-language releases, especially in North India.

The makers released Thug Life on June 5, but the film struggled to draw audiences. Following negative reviews and a controversy in Karnataka over Kamal Haasan’s comments on the Kannada language, theatres across India quickly removed it from screens. Now, reports confirm that the producers will go ahead with the early OTT release, which has upset national multiplex chains. These chains responded by imposing a fine for the violation.

Why the Rs 25 Lakh Fine Matters

According to a report by Pinkvilla, Raaj Kamal Films International, the production company behind the film, will lose its Rs 25 lakh share from the Hindi theatrical revenue. A source clearly stated, “Multiplexes in North India follow a strict 8-week OTT window rule. Since Thug Life violated this norm, multiplexes penalized the producers.”

The production team had also ignored this rule once before during the release of Indian 2, creating growing concerns within film distribution circles. Even though multiplex chains urged the makers to delay the streaming release, the producers chose to stick with their decision. As a result, Thug Life will soon land on Netflix, despite the backlash.

Netflix Deal Slashed After Poor Box Office Run

Netflix initially agreed to pay Rs 130 crore for the film’s digital rights. However, after the movie failed in theatres, Netflix renegotiated the deal and lowered the offer to Rs 110 crore. The producers accepted this revised deal, which also included an agreement for a shorter OTT window. This adjustment reflects a bold strategy aimed at recovering some of the losses quickly, even if it means upsetting multiplex partners.

Thug Life: A Star-Studded Flop?

Thug Life features a powerful cast that includes Silambarasan, Trisha Krishnan, Aishwarya Lekshmi, and Ali Fazal. Kamal Haasan plays a gangster, while Silambarasan portrays his adopted son. The film marked the reunion of Kamal Haasan and Mani Ratnam after more than three decades, raising fan expectations. Despite the hype, the film failed to connect with audiences, leading to an early exit from theatres and a hurried move to OTT.

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