Analysis: Producers Vs Distributors in Tollywood


There was a drastic change in the business of films after the pandemic. The non-theatrical deals have increased for every established actor of Telugu cinema irrespective of their success streak. The producers have made huge money through the biggies. Several hit films like Pushpa: The Rise, RRR and Sarkaru Vaari Paata left the distributors in losses though they are declared as hits. This is because of the huge asking price from the producers. For films like Radhe Shyam, Acharya, Ghani, Thank You, The Warrior, Ramarao On Duty and Liger, the distributors lost big amounts. The distributors are no longer interested to make non-refundable payments for any film in the future. Most of the producers did not keep their promises because of which the distributors took this drastic step. There is a huge gap between the producers and distributors financially. Here are some of the incidents that took place in the recent months:

Dil Raju who is a distributor-friendly producer too did not keep his promise. He asked his buyers to pay hefty amounts for F3 and the buyers lost in some of the areas. Dil Raju did not repay the losses and he kept calm about the same. It is then his distributors revealed that they would pay nothing for Thank You as the film carried low buzz. After F2, all his films Iddari Lokam Okate, Jaanu, Rowdy Boys ended up as flops and left the buyers in huge losses. Dil Raju missed several deadlines in the past.

Mythri Movie Makers are producing several biggies. After Uppena, films like Pushpa: The Rise, Sarkaru Vaari Paata, Ante Sundaraniki and Happy Birthday released. All these films left the buyers in huge losses. Mythri promised to repay the losses for Pushpa: The Rise but they never compensated for the same. They promised to adjust the same in Sarkaru Vaari Paata but it did not happen. Instead, Ante Sundaraniki increased the losses for the buyers. All the distributors informed the production house that they would release their films on an advance basis in the future and are not ready to take a risk.

Acharya is the biggest flop of Telugu cinema. Koratala Siva who is responsible for the business is yet to compensate the buyers after months. They are just left in waiting mode for the refunds. This is very pathetic.

Sudhakar Cherukuri of SLV Cinemas delivered four flops like Padi Padi Leche Manasu, Virata Parvam, Aadavallu Meeku Joharlu, Ramarao On Duty. His last two films Virata Parvam and Ramarao On Duty were released on an advance basis. He needs to repay huge amounts to his buyers. He now sold out the theatrical rights of Nani’s Dasara for a new buyer as a package. All his distributors are furious against the young producer for his move. He promised to compensate for the same but no one knows when it would happen.

Liger is a huge loss for everyone involved. The distributors are left in shock and Puri Jagannadh is in talks for the compensation.

After a series of incidents, there is a considerable gap between the Producers and Distributors of Telugu cinema. They are now ready to release any film on an advance basis and are not ready to release them on NRA system. Films like Bimbisara, Sita Ramam and Karthikeya 2 which are released on an advance basis left everyone in profit. This would be implemented for every film in the future.

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