Audit Uncovers Rs. 91 Crore Loss from Sikandar Piracy Leak
In a notable development highlighting the escalating issue of digital piracy, Sajid Nadiadwala’s Nadiadwala Grandson Entertainment Pvt. Ltd. (NGEPL) is reportedly preparing to file a substantial insurance claim of ₹91 crores due to piracy-related losses from their recent film, Sikandar, featuring Salman Khan. Following a detailed audit that assessed the financial impact of the piracy leak, the production house is considering invoking its digital piracy insurance. The audit, conducted by Ernst & Young, revealed significant revenue losses attributed to the unauthorized distribution of the film shortly after its release.
Audit Findings and Revenue Losses
Sources close to the situation disclosed that NGEPL commissioned an audit to evaluate the extent of the piracy leak and its repercussions on box office revenue. The audit, carried out by Ernst & Young, estimated the losses at approximately ₹91 crores. This figure was derived through a combination of comparative modeling and market benchmarking, which included analyzing pre-release box office projections and occupancy trends in theaters. The audit also utilized digital footprint tracing tools to monitor illegal downloads and streams across various platforms. According to insiders, the methodology involved a thorough examination of data from ticketing platforms and distributor reports, ultimately converting the piracy figures into estimated revenue losses.
The audit revealed that pirated copies of *Sikandar* began circulating on encrypted messaging platforms and unauthorized streaming sites just hours after its theatrical release. In some instances, these copies were available even before the film officially premiered. The scale of this leak was described as unprecedented, significantly impacting the film’s box office performance.
Details of the Pirated Version
The pirated version of *Sikandar* was found on notorious piracy websites such as Tamilrockers, Movierulz, and Filmyzilla, as well as various Telegram groups. These platforms made the full movie accessible for illegal download and streaming, often including scenes that were not part of the final theatrical cut. Sources indicated that the pirated version contained raw background scores and additional scenes, such as a longer flashback involving a character’s health issues and deleted sequences that provided deeper context to the storyline.
One notable discrepancy in the pirated print was the inclusion of the original 1964 version of the song “Lag Ja Gale,” rather than the rendition by Iulia Vantur, which was featured in the official release. Additionally, the pirated version lacked certain musical elements that were later added to the final cut, suggesting that the leak may have occurred after the film received clearance from the Central Board of Film Certification (CBFC).
Potential Impact on the Film Industry
If NGEPL proceeds with the insurance claim, it could mark one of the largest piracy-related claims in the history of Indian cinema. This situation underscores the increasing recognition of digital piracy as a financial risk in the film industry. Experts in digital distribution have noted that studios are beginning to treat piracy not only as a legal or ethical issue but also as a significant financial concern. The growing trend of risk management tools, such as cyber insurance, is becoming more prevalent among production houses.
Despite the ongoing discussions regarding the insurance claim, no formal claim has been filed yet. Sources indicate that while internal assessments are underway, it is too early to confirm any official action from NGEPL. The production house has not yet released any statements regarding the audit or the potential claim, and attempts to reach them for comment have gone unanswered.
As the film industry grapples with the challenges posed by digital piracy, the situation surrounding *Sikandar* serves as a critical reminder of the need for robust measures to protect intellectual property and revenue streams in an increasingly digital landscape.
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