The situation of the Telugu film industry right now is appalling. It is the small budget films that are keeping the industry afloat, the big budget films are thoroughly disappointing and there seems to be no hope in the horizon. Amongst the total budget, the Telugu film industry allots 75 percent to remunerations, 20 percent to production and 5 percent goes to publicity. There are just a couple of independent distributors and they two will disappear in a couple of years. The small distributors have become cashiers for the big distributors, they are living at their mercy. In Chennai, the story is different. The theatre owners are powerful, they set up a distribution network and they decide which film to release in which place. The producers in Telugu film industry are weak. Unless we have three or four Bhale Bhale Magadivoy‘s i.e unless we have a hit on that level..the industry cannot come back to a stable position. It will continue to limp.