Telugu Producers Are Very Worried

Barring Chiranjeevi’s Mana Sankara Varaprasad Garu, the big stars have struggled to sustain crowds in theatres this year, raising serious concerns about the industry’s current trajectory. “This is the most alarming trend. Even Prabhas and Pawan Kalyan are able to pull audiences only for the first one or two days. It clearly shows that relying solely on charisma is no longer enough. Stars must focus on strong content, or their stardom will start fading,” warns a leading distributor.Content conundrumBut even more worrying is the fact that content-driven films are also facing a challenge. Nearly 25 films released from February till now have been box office disappointments. Small and content-driven films like Euphoria, Psych Siddhartha, Seetha Payanam, Hey Balwanth, S Saraswati, and Band Melam failed to make an impact. Even films like Biker and Raakaasa, which generated some buzz, could not convert it into box office success. This week too, releases such as Paapam Pratham, Bad Boy Karthik, and Thimmarajupalli TV failed to register notable numbers.Unable to read audiences’mind“It is a tough time for content-driven and small-budget films,” admits producer Raj Kandukuri. “Films today need strong endorsement for audiences to decide whether they are worth watching. The new-generation audience is showing less interest in coming to theatres, as they have plenty of content available on OTTs. The scorching summer and ongoing IPL matches have ensured that footfalls have dropped further. Producers are truly clueless.”He adds, “Making a film is like writing an exam and waiting for results. If the ‘teacher’— the audience — doesn’t respond at all, neither approving nor rejecting, it becomes even more worrying for new-age actors and directors.”OTT disinterestAdding to filmmakers’ woes, OTT giants are showing reduced interest in Telugu content. A senior producer, who has worked with stars like Pawan Kalyan, Jr NTR, and Ravi Teja, expresses deep concern. “We don’t know for whom we are making films anymore. OTT rates have fallen to just 20–30% of what they used to be, leaving us with no reliable way to recover investments.”He explains that producers were initially drawn to OTT platforms due to lucrative deals. “Digital platforms once paid Rs 50–70 crore per film, helping them build a strong Telugu viewership base. But later, they slashed budgets drastically and introduced new rules, including pay cuts.”The producer also criticizes the practice of linking OTT pricing to theatrical performance. “They are equating box office collections with OTT value, even though the audiences are completely different. This is unfair,” he says.Payment problemsAnother major concern is the payment structure. “Payments are now split into four instalments. If a film underperforms in theatres, platforms skip the last one or two instalments. Producers are forced to absorb the losses,” he shares.Veteran producer C. Kalyan echoes similar concerns, noting that major platforms like Netflix, Amazon Prime Video, Disney+ Hotstar, and ZEE5 have slowed down acquisition of Telugu films. “It is true that digital giants have reduced their intake of Telugu movies, and this has set alarm bells ringing in the industry.It’s a worrying situation. Earlier, digital rights would cover a major portion of a star film’s budget. Now, with reduced OTT spending, we are in dire straits,” he says.He also raises concerns about rising remuneration. “During the OTT boom, actors and directors significantly increased their fees. Now that digital platforms have cut back, will they reduce their pay to ease the burden on producers?” he asks.



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