Cost-Cutting Measures In Tollywood Are A Tough Nut To Crack

Telugu Film Producers Council, General Secretary, T Prasanna Kumar, welcomes any measures to cut production costs and appreciates the decision of Tamil producers. “We are glad that Tamil producers are trying to save costs and help producers, but there are a few practical difficulties, “says Prassana Kumar, and adds, “Tamil Film Producers Council (TFPC) indeed passed several key resolutions to strengthen the Tamil film industry. The meeting focused on easing the financial pressure on producers and reviving the theatrical business, which has been struggling due to declining revenues and changing audience habits,” he adds.

The TFPC announced that all big-budget films will now follow a revenue-sharing model. Under this plan, top actors and leading technicians will no longer take full salaries upfront but will share profits and losses with producers. The council urged major stars like Rajinikanth, Kamal Haasan, Vijay, Ajith, Suriya, Sivakarthikeyan, Dhanush, Vikram, STR, and Vishal to support the new structure and cooperate in balancing the industry’s economics.

Can Telugu film producers pass similar conditions and rein in the production cost of Telugu films? Since Telugu superstars like Prabhas, Allu Arjun, Pawan Kalyan, Mahesh Babu, JR NTR, and Ram Charan are drawing anywhere between Rs 75 to 150 crore per film, while actresses like Rashmika, Sreeleea, Sreeleela, Sai Pallavi, and Mrunal Thakur draw anywhere between Rs 2 to 4 crore per film, while some directors like Boyapati Srinu and Sukumar have crossed Rs 40 crore pay. “Industry operates on a demand and supply mode, and big stars who have a market are going to draw more, and producers don’t mind paying them for actor-director combinations, and a few suffered losses due to big budgets. Another worry is that many actors don’t even draw minimum openings and are charging Rs 15 to 25 crore and ruining producers and distributors,” he says, and adds, ‘Honestly, few inexperienced producers have ruined the industry and disturbed the economics of the Telugu film industry. Hence, seasoned producers are cutting down productions since remuneration of actors, actresses, and even technicians has skyrocketed and made filmmaking unaffordable,” he adds.

Another producer, C Kalyan, adds, “Rising production costs have forced producers to seek ticket hikes from Rs 400 to Rs 1,000 in the opening week, and it has helped only a few films, while not many others,” he says. According to Kalyan, out of nearly 3,000 registered producers, only about 20 remain active while the rest have gone dormant, burdened by debts and unpaid dues. “I have a list of producers who are struggling to make ends meet after investing heavily in films with top stars over the past two decades. Some producers are unable to support their children’s education and healthcare, while actors and technicians have built elegant bungalows and ride in swanky cars,” he laments.

When asked about varied sources of income for pan-India Telugu films, he concludes, ‘Pan India is just a myth and only a few films were received across India. With OTT, Hindi dubbing, and other non-theatrical rights losing value, even top producers are struggling to sustain themselves. A few may still appear stable, but given the current losses—even in star-studded films—it’s uncertain how long they can hold on.”