Kamal Haasan’s high-profile action drama Thug Life, directed by the legendary Mani Ratnam, is facing a critical and commercial crisis just over a week after its theatrical release. Made on an eye-watering budget of ₹200 crore, the film was touted as a cinematic spectacle but has ended up underperforming drastically, prompting alarm among theatre owners and distributors.
Released on June 5, Thug Life marked the reunion of Kamal Haasan and Mani Ratnam after nearly four decades since their classic Nayakan (1987). The film was expected to be a pan-Indian blockbuster, buoyed by a star-studded cast including Silambarasan (STR), Trisha, and Pankaj Tripathi, grand action sequences, extensive VFX, and a massive marketing blitz. However, despite the hype, the movie has barely scraped past ₹40 crore in its first week at the domestic box office.
“We are deeply disappointed,” said a prominent Tamil Nadu distributor on condition of anonymity. “Theatre occupancy dropped drastically after the opening weekend. We were expecting a Nayakan-like reception, but it’s been a financial bloodbath.”
Massive Budget, Massive Losses
Industry insiders have pegged the total budget at ₹200 crore, a significant chunk of which went into elaborate VFX work, action choreography, and high remuneration for the principal cast and crew. Kamal Haasan himself is believed to have drawn a substantial fee as both actor and co-producer.
What’s added to the pressure is a reported ₹130–150 crore OTT deal signed with Netflix. The digital streaming rights, sold even before the film’s release, were seen as a way to recoup a large portion of the investment. However, in the wake of the box office debacle, sources suggest that the OTT giant may be re-evaluating the deal, possibly seeking renegotiation or imposing conditions on future collaborations.
Language Controversy Adds Fuel to Fire
Another significant blow came from an unexpected controversy. During a promotional event, Kamal Haasan’s remark that “Kannada is born out of Tamil” triggered a major linguistic row. The backlash led to an unofficial ban in Karnataka, a major revenue-generating state for South Indian films. Several multiplexes reportedly pulled the film off screens, further slashing its already waning prospects.
Distributors and Theatre Owners Demand Compensation
With the film underperforming both in southern and northern territories—its Hindi version reportedly earned less than ₹1 crore—distributors are now in the red. Many are urging the production house to offer financial compensation to offset the losses.
“We were promised a blockbuster. But Thug Life hasn’t even covered 25% of our investment,” said an overseas distributor who claims to have incurred losses running into crores. “It’s time producers took responsibility when such high-budget projects fail.”
Looking Ahead: A Tough Lesson for the Industry
The failure of Thug Life could potentially alter the landscape of star-driven, mega-budget films in Tamil cinema. It serves as a cautionary tale for producers and OTT platforms alike: star power and hype alone cannot guarantee returns.
Meanwhile, fans and critics alike remain puzzled by the film’s lukewarm reception. Some blame the convoluted narrative, others the misaligned marketing. But most agree—when legends like Kamal Haasan and Mani Ratnam come together, expectations soar high, and any shortfall is felt more acutely.

