Need of hour in Tollywood: Funding Badly Needed
This has created a new problem in the industry as producers are now having to search for funding resources
By: Tupaki Desk | 25 Jun 2025 5:01 PM ISTThe Telugu film industry is one of the most demanding in terms of financial resources as producers are generally expected to spend hundreds of crores while working with big heroes. This has created a new problem in the industry as producers are now having to search for funding resources
According to the latest reports from the internal sources, Tollywood is facing a serious funding problem. Film budgets have gone very high, with top heroes charging ₹50-60 crore and directors taking ₹20–25 crore.
Many producers, especially NRIs, are investing without proper knowledge and end up facing huge losses if the films fail. Some even suffer health issues or financial collapse. OTT platforms like Netflix and Prime Video have also reduced their spending on Telugu content, making it harder for producers to recover costs.
Theatrical collections alone are not enough anymore. Distributors and financiers are stepping back due to low profits. On top of this, recent income tax raids have made people in the industry more cautious, slowing down film funding.
Fans and critics are also blaming the industry for focusing on big stars and poor stories instead of quality filmmaking. To survive, some areas like the Nizam region are trying revenue-sharing methods instead of paying huge advances.
If the situation continues to remain this way, then producers could be facing a tough challenge when it comes to film production in the days to follow.
