Kamal Haasan and Mani Ratnam's highly anticipated film Thug Life has failed to make an impact at the box office, resulting in a significant financial loss for Kamal Haasan who is also the producer for the film. Thug Life, which was initially supposed to have an 8-week OTT window, was released on Netflix earlier than expected due to its poor performance. According to reports, Netflix cut around 20 Cr from the agreed price due to terms discussed, and the makers also faced a fine of ₹25 lakh for violating standard OTT release norms.
The film's makers had initially negotiated with Netflix to maintain an 8-week theatrical window, but due to the film's poor performance, they had to settle for a 4-week window. This decision has resulted in a significant loss for Kamal Haasan, who had taken a risk by releasing the film on OTT earlier than expected. The film's poor reviews and lukewarm audience response led to its swift removal from most cinemas, making it a commercial failure.
The film's digital rights were valued at ₹130 crore before its release, but Netflix renegotiated the price to ₹90 crore after the film's poor performance. The parties eventually settled on ₹110 crore for the digital rights, with a reduced OTT window of 4 weeks. The fine imposed by the National Multiplex Chains for breaching the guidelines has added to the financial burden on the makers.
Thug Life opened to a reasonable ₹36 crore gross worldwide on day one, but its earnings dropped significantly over the next few days. The film's total earnings fell short by nearly ₹60 crore compared to Indian 2, a staggering miss that no one anticipated. The film's failure has been a significant setback for Kamal Haasan and Mani Ratnam, who had high hopes for the project.