OTT Giants making Tollywood sleepless

Ott giants making Tollywood sleepless.The Telugu film industry, affectionately known as Tollywood, is currently grappling with uncertainty as major international digital platforms like Netflix and Amazon Prime are reportedly considering reducing their procurement of Telugu movies. These platforms have traditionally allocated a substantial budget of Rs 250 to 300 crores annually for Tollywood content acquisition. However, recent losses attributed to a few Telugu films have prompted discussions about budget cuts.

This development has understandably raised concerns among filmmakers, particularly those behind star-studded productions. These digital giants play a pivotal role in financing these ambitious projects, helping to alleviate the financial burdens on producers. For example, significant revenue streams for producers often include audio rights, satellite rights, Hindi dubbing rights, and digital rights. A reduction in intake by top digital platforms could make it challenging for filmmakers to undertake large-scale productions. Producer Abhishek Nama expresses his concerns, highlighting the extensive global viewership of these two Ott platforms spanning over 200 countries and hopes for reconsideration of their decision.

Conversely, an anonymous top director points out that some Telugu filmmakers may bear responsibility for the current situation. Their eagerness to create pan-India movies led them to overvalue their films, resulting in underwhelming performances at the box office. Not every film can replicate the success of "RRR" or "Pushpa." Consequently, digital platforms have become more discerning, recognizing the limited global appeal of Telugu films. To illustrate, a digital platform's acquisition of a Telugu star film for Rs 30 crore failed to recover even Rs 6 crores in revenue, prompting corporate entities to adopt a more cautious approach.

It's worth noting that international brands have established "audit teams" in India, meticulously examining the surge in subscriptions following a new film's addition, actual viewership figures, and repeat audience counts. Several highly anticipated Telugu films have fallen short in terms of viewership.

Nevertheless, the impending budget cuts are likely to impact around 50 small and medium-budget films that contribute to the livelihoods of numerous individuals in the industry, including cine workers and technicians. This predicament can be partly attributed to digital platforms favoring star-studded ventures over content-driven films. A potential solution proposed by a producer involves allocating 30 to 40% of the annual budget to medium-budget films (Rs 8-10 crore) and low-budget films (Rs 2-3 crore) to establish a balanced portfolio. This approach diversifies risk and offers the potential for substantial returns, as demonstrated by the success of a smaller film like "Baby," which shattered box office records by collecting over Rs 50 crores.

In summary, producer C Kalyan emphasizes the significant financial consequences of a big film's failure and suggests that brands should consider the Malayalam industry's success model, which prioritizes novel content over reduced budgets. Ultimately, this shift in strategy would benefit Tollywood and its stakeholders in the long run.