Reasons behind Tollywood sinking. In the midst of a challenging phase with more than 45 box office disappointments, including films featuring star power, Tollywood is grappling with financial strain. Compounding the industry's woes, leading actors are demanding exorbitant fees ranging from Rs 15 to 60 crores, while actresses have surpassed the Rs 4 crore mark per film, and select directors are commanding fees touching Rs 25 crore.
These inflated paychecks have inflated film budgets beyond sustainability, turning filmmaking into an economically precarious venture. The repercussions are evident, with projects like Ravi Teja-Gopichand's film put on hold, and Varun Tej’s "Matka" makers reportedly reevaluating budgets. Other star-studded films are undergoing budget revisions as well.
Producer C Kalyan attributes the industry's plight to new and NRI producers lacking business acumen, excessively investing in stars and actresses, thereby disrupting the market. He laments the diminished intake of Telugu content by OTT platforms, further exacerbating the industry's challenges. Producers, who were once in control of budgets, are now struggling with films exceeding Rs 100 crores and even touching Rs 150 crores, making recovery an arduous task.
"The trend of overspending has led to producers facing financial crises, with some shutting down their operations or resorting to extreme measures to release films," remarks C Kalyan. He cites instances of heart attacks, property sales, and substantial losses, illustrating the severe toll on producers. Stars and technicians may be enjoying lavish lifestyles, but producers are disappearing under the pressure of unforgiving financiers.
Lagadapati Sridhar, a seasoned producer, encourages new entrants but emphasizes the importance of financial prudence. He underscores the significance of budget management, drawing from his experience and the wisdom shared by legendary producer Rama Naidu. Sridhar suggests that many NRIs investing in Telugu films lack a comprehensive understanding of the industry dynamics, causing disruptions in pay structures.
Acknowledging the rising influence of digital platforms, Sridhar views poor and repetitive content as a key factor contributing to the surge in box office failures. He calls for a shift in mindset among big stars, urging them to embrace novel and diverse themes akin to their counterparts in Tamil and Malayalam cinema. Sridhar concludes by highlighting the need for enriched creativity to compete on OTT platforms, as theatrical turnouts are dwindling.