Financial crunch haunting Tollywood

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The budgets of Telugu cinema reached new heights. The theatrical and non-theatrical market of every star hero too got increased and several producers are investing big on multiple films from the past few years. All the top producers of Telugu cinema are producing many films. All of a sudden, there is a huge slash in the non-theatrical deals. With the heaped budgets and a huge cut in the non-theatrical deals, the financiers are not lending money for every project. They also turned quite selective and are ready to finance 30-40 percent of the total budget.

Most of the producers rely on financiers to complete their projects. Hence, this is turning out to be a huge stress for the filmmakers. Producing multiple films is also turning an extra stress. The distributors of buzz-less films are not ready to take any risk and pay NRAs. This is because of the dead exhibition industry. The producers of Telugu cinema are suffering with big investments with the unpredictable non-theatrical and theatrical market. The entire risk falls on the producer for now because of the unpredictable market involved.

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