With the decline in the theatrical market and the non-theatrical deals, the producers of Telugu cinema are left in stress. Gone are those days when the digital firms offered big deals during a film’s launch. They are now cautious and are waiting for the content from the film to be out to close the digital deal. There is a huge decline in the satellite and Hindi market for Telugu films. The stress entirely falls on the theatrical market and the financiers are now not ready to lend out huge money for the producers.

They are keeping an eye on the combos, budgets, credibility and the success rate of the producers before lending financer for a film. Several financiers of Telugu cinema have lost big money after the producers could not bail out their projects. Instead, these producers offered the non-theatrical rights which left a huge loss for the financiers. With the delays in many films, the financiers are also in stress and they are struggling to rotate the money. They are not offering finances for every producer after the launch. They have imposed new rules to start the project and complete 40 percent of the shoot and also close the digital deal.

Some of the financiers are lending money based on the non-theatrical deals. Most of the producers rely on finance and they are now struggling to arrange money on time to plan the schedules. There is a bigger vacuum in the financial space of Telugu cinema. This is because of the increase in the number of films and decline in the non-theatrical deals.