Analyzing Tollywood risk model

Analyzing Tollywood risk model. Of late, the calculations of big-budget films in Tollywood are changing at a supersonic pace. The Rs 150-Rs 200 cr project used to have a star hero name, huge openings, and distributors' advances used to be constant most of the time.

However, now, in the name of big budgets, visual scale, and pan-India concept, many are trying to raise finances. Of late, fantasy, mythological, VFX-oriented stories are having a good market across the world. Keeping in this trend, Tollywood producers are pumping in huge money into such stories, visual values, and international-level technical execution. But many feel it is risky without having star heroes in their projects.

In these projects, the recovery model is the main challenge. Now, just theatrical business alone is not enough. Overseas rights, satellite, dubbing, overseas streaming, music, and digital-related rights together form the production venture. Earlier, star hero films used to get huge rights at the time of the projects due to their markets.

Now, digital platforms are keen on investing money only if the content is strong. So a hero's market value is playing a key role, and distributors take risks only if star power is there. If a new face or hero has less market value, financing, brand tie-up, and marketing expenses change. That is the reason why producers are paying attention to script development, pre-visualization, and VFX planning.

- Pramod Nandivada