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High 'Demand' and Less 'Return' in Overseas!
By: Tupaki Desk | 3 July 2017 6:24 AM GMT
Telugu Cinema has been blessed with finding alternatives to conventional markets whenever it had to face some dire circumstances. When the number of films produced were less during the early days, Cinema saw a surge in the number of subsidies given by Government that enabled Cinema to repel and replace, Theatre and Street Drama that was big during the time.
Later, when the Cinema business started blossoming the local and native issues among the actors and producers have raised a new Challenge and brought down the production costs considerably for few films and Government once again helped in this matter. Then, Government became a villain to ever-growing business with slab system and Cinema had to find alternatives to survive and content oriented commercial cinema started taking over lame and stale action dramas and we saw films like 'Shiva' being made.
Shiva also became an example for Telugu Cinema to explore new markets like North Indian, Tamil and Malayalam to 90's producers who either used to think about remaking the films in other languages or selling the rights to different producers rather than trying out Universal content. When Telugu Cinema started surge in the production cost and when they needed a new market to open up, thanks to Information Technology, Overseas opened up.
But the market, has been one cash cow for Producers who are unable to crack it right. The Golden Goose chase has been on ever since films like Dookudu have showed that collecting a Million dollars in Overseas is possible. With every film, producers to recover more money had to depend on Overseas and looked at it as the easy way to enter into profits
Lately, even the distributors who have been used to buy rights of the films in Telugu States just by looking at the previous film's business have started doing so in Overseas and hence the Huge 'Demand's by Producers in terms of Non-Refundable Advances and Complete Rights are yielding Less 'Returns'. Many distributors have lost money by investing more in the movies like Duvvada Jagannadam, where the content screamed it to be a masala entertainer and such films should have been bought for less but the distributors went on to buy the rights for 15 crores reportedly and the movie with Million Dollars gross, looks like an easy 4 to 5 crores loss for the distributors,.
Even other films released this year like Shatamanam Bhavatahi, Nenu Local that outperformed the respective hero's market have ended up reporting losses. Still, the producers are showing the Baahubali 2 example which collected more than 20 Million dollars and showing that the Business as increased and a crazy film should do a business of 20 crores pre-release. The demands for Pawan Kalyan and Trivikram film and also Mahesh Babu and Murugadoss film, Spyder are at equal amounts of upto 25 crores. This is an amount that can only be recovered if the said movie collects more than 3 Million to 4 Million.
Also, the asking rates for Puri Jagannath and Balakrishna's film is also high showing his previous Gautamiputra Satakarni as an example. Well, the distributors are still undecided on these films and NTR's Jai Lava Kusa as well. Producers are looking to close the business of these films in all areas but with such high rates, Overseas distributors are thinking it is too huge a risk and Golden Goose might not yield as much as the makers are expecting. Let's see what will be the end result and we will keep you updated like always!
Later, when the Cinema business started blossoming the local and native issues among the actors and producers have raised a new Challenge and brought down the production costs considerably for few films and Government once again helped in this matter. Then, Government became a villain to ever-growing business with slab system and Cinema had to find alternatives to survive and content oriented commercial cinema started taking over lame and stale action dramas and we saw films like 'Shiva' being made.
Shiva also became an example for Telugu Cinema to explore new markets like North Indian, Tamil and Malayalam to 90's producers who either used to think about remaking the films in other languages or selling the rights to different producers rather than trying out Universal content. When Telugu Cinema started surge in the production cost and when they needed a new market to open up, thanks to Information Technology, Overseas opened up.
But the market, has been one cash cow for Producers who are unable to crack it right. The Golden Goose chase has been on ever since films like Dookudu have showed that collecting a Million dollars in Overseas is possible. With every film, producers to recover more money had to depend on Overseas and looked at it as the easy way to enter into profits
Lately, even the distributors who have been used to buy rights of the films in Telugu States just by looking at the previous film's business have started doing so in Overseas and hence the Huge 'Demand's by Producers in terms of Non-Refundable Advances and Complete Rights are yielding Less 'Returns'. Many distributors have lost money by investing more in the movies like Duvvada Jagannadam, where the content screamed it to be a masala entertainer and such films should have been bought for less but the distributors went on to buy the rights for 15 crores reportedly and the movie with Million Dollars gross, looks like an easy 4 to 5 crores loss for the distributors,.
Even other films released this year like Shatamanam Bhavatahi, Nenu Local that outperformed the respective hero's market have ended up reporting losses. Still, the producers are showing the Baahubali 2 example which collected more than 20 Million dollars and showing that the Business as increased and a crazy film should do a business of 20 crores pre-release. The demands for Pawan Kalyan and Trivikram film and also Mahesh Babu and Murugadoss film, Spyder are at equal amounts of upto 25 crores. This is an amount that can only be recovered if the said movie collects more than 3 Million to 4 Million.
Also, the asking rates for Puri Jagannath and Balakrishna's film is also high showing his previous Gautamiputra Satakarni as an example. Well, the distributors are still undecided on these films and NTR's Jai Lava Kusa as well. Producers are looking to close the business of these films in all areas but with such high rates, Overseas distributors are thinking it is too huge a risk and Golden Goose might not yield as much as the makers are expecting. Let's see what will be the end result and we will keep you updated like always!
