We Aren’t Threatened by New Distributors, Says D Suresh Babu

The long-standing monopoly over film distribution in the two Telugu states appears to be under serious threat, with several leading producers joining forces to challenge the status quo. The entry of seasoned star Nagarjuna Akkineni into film distribution across Andhra Pradesh and Telangana is expected to significantly alter the landscape in the coming years.

According to industry sources, Annapurna Studios has already set up a distribution office in Hyderabad and is now preparing to open another office in Visakhapatnam, signalling a major expansion across both Telugu states. Prominent producers such as Naga Vamsi, Sahu Garapati, and Sudhakar Cherukuri are reportedly set to collaborate with Annapurna Studios to form a syndicate that will both produce and distribute films.

Downplaying the development, leading producer, exhibitor, and distributor D Suresh Babu dismissed concerns over increased competition. “Not at all a threat for us. Earlier, there were 30 to 40 distributors and only a few survived. It is an open business and there is space for everybody. I have seen many distributors come and go. Anyone can open an office and do distribution in the Telugu states; no specific licence is required,” he pointed out.

With big-ticket films such as Toxic, Dhurandhar, Pawan Kalyan’s Ustaad Bhagat Singh, and Ram Charan’s Peddi slated for release in March and April, distributors are naturally drawn towards star-driven projects. “Star films have always attracted distributors and there’s nothing wrong with that. In the distribution business, I have personally seen both good and bad phases. Sometimes the good days last longer, sometimes the bad days do. One has to stay afloat,” Suresh Babu added.

However, another producer says the recent move stems from growing dissatisfaction among producers over alleged lack of transparency and delayed payments by an existing distributor. Speaking on condition of anonymity, the producer claimed, “A distributor failed to honour financial commitments to one producer, forcing him to sever ties and join the syndicate. A film sold for ₹30 crore, but only ₹22 crore was paid, with the distributor asking the producer not to ask for more. Even box-office collections of hit films are not fully reaching producers.”

The producer further added that earlier, daily collection reports (DCR) were regularly shared, but the practice has largely disappeared. “Even when a film becomes a blockbuster, producers are not receiving overflows. It’s extremely unfortunate.”

As a result, the distribution ecosystem in Andhra Pradesh and Telangana is witnessing significant churn. Noted production house Mythri Movie Makers has been active in distribution for the past two years, releasing both big-budget and small films. "Established exhibitor-turned-distributors such as Suresh Babu, Allu Aravind, Dil Raju, and Suniel Narang together control over 500 theatres across the Telugu states, in addition to another 200 screens. Mythri Movie Makers reportedly operates around 60 theatres and is steadily expanding its distribution footprint,' adds the producer.

Producer Lagadapati Sridhar voiced strong concerns over the current system. “I hope more transparency is brought into the distribution business in the Telugu states. At present, the producer is at the mercy of the distributor — like a king turned into a pawn,” he said, urging distributors to settle payments on a weekly basis.

“When bookings are largely online, collections should be transparent. Despite technological advancements, producers are made to wait nearly 100 days to recover their money. A new syndicate breaking the monopoly and ushering in honesty would be widely welcomed,” he said. He cited the example of Rentrak in the US, which provides real-time, theatre-wise and film-wise box-office data. “That would be a game changer,” he remarked.

He further added that while star-driven films usually receive advance payments and are relatively secure, producers of nearly 80 medium and small films every year remain uncertain about their returns and often wait indefinitely for payments. “More players entering distribution will definitely bring transparency and accountability,” he asserted.