‘All that glitters is not gold’ is a well-known saying. This phrase perfectly suits the plight of Telugu film distributors in USA. Half of the year 2017 has passed, we have only 4 out of 35 released films recovered investment in USA. In this article, we are presenting bitter truth to Telugu industry people and also to USA distributors, exhibitors.
As per new payout structure, the shocking fact is, unless a film becomes super hit in USA, the distributor share is a low 35% to 40% of its gross collection. Let us consider two decently run films ‘Ghazi’ and ‘Rarandoi Veduka chudham’ USA performance.
- For Ghazi which grossed $765,000 the distributor share is $290,000 (38%)
- For ‘RaRandoi Veduka Chuddham’ which grossed $550,000 , the distributor share is $210,000 (38%)
It is known fact that in India, distributor share is up to 70%-75% in B-C centers, 65% in A center. In multiplexes, in India, the distributor share starts at 50% and move upwards for big films and its case to case negotiation. Here the point to be underlined is, USA distributor share is way below than their counterparts in India, and is under 40% [ Except superhit films]. Many movies which are hit in India, are turning out as huge loss ventures in USA. This is leading to recession in film market unless overhaul is done top to bottom.
In USA, one should forget Baahubali epic run and also ‘A AA… ‘, ‘ PelliChoopulu ‘ like money spinners which come and go once in a blue moon – whereas real business is with remaining 98% of the films.
With makers of upcoming biggies ‘Spyder’, ‘Jai Lavakusa’ and ‘Pawan Kalyan-Trivikram film’ are quoting ridiculously high prices for their films, USA distributors and local exhibitors are cautioned over the new payout structure of theatre chains.
Telugu360.com’s request to producers, on behalf of USA Telugu film fraternity, is to “be practical”. End of the day, common audience are getting robbed with $18 to $25 price though business circlers are striking it off as demand supply philosophy. The distributors who are paying impractical rates to the producer are ending up in losses despite transferring risk to the exhibitors and audience. We may read that Telugu film potential in USA is bigger than bollywood etc. statements which are true – but leveraging it to a win-win formula for all is the key. Trading sand for profit is better than trading gold at loss.
Producers’ ability to respond quickly to change will help the film business to remain stable.
A Telugu saying best fits for distributors who won any Telugu film overseas rights:
Case Vodipoyina vadu Court bayata yedisthe, Gelichina vadu intikelli koorchuni yedustuntaru.
