Tollywood’s Dilemma: OTT Giants Consider Cutting Budget for Telugu Movies

In a surprising turn of events, international digital streaming giants Netflix and Amazon Prime are reportedly contemplating a reduction in their annual content budget allocated to Telugu cinema, leaving Tollywood filmmakers in a state of anxiety. These two major OTT players currently allocate a substantial sum of Rs 250 to 300 crores each year for procuring Telugu content. However, recent losses attributed to certain Telugu films have led to speculation about impending budget cuts.

This potential decision has sent ripples through the Telugu film industry, as many star-studded productions heavily rely on these digital platforms to recoup investments. Producer Abhishek Nama, echoing the concerns of many, highlights the crucial role of these OTT platforms in easing the financial burden for producers. He emphasizes the significance of revenues from audio, satellite, Hindi dubbing rights, and digital rights in the success of big-ticket movies.

However, an anonymous top director points out that some Telugu filmmakers bear part of the responsibility for this predicament. Their ambitious endeavors to create pan-India movies, while fetching significant sums, have sometimes resulted in disappointing performances at the box office. The director emphasizes that not every film can attain the colossal success of “RRR” or “Pushpa.”

Furthermore, it has come to light that international brands have established “audit teams” in India, meticulously analyzing subscription increases, actual viewership, repeat audiences, and the underwhelming performance of certain hyped Telugu films. This scrutiny has prompted them to rethink their strategies.

The potential budget cuts are expected to adversely affect around 50 small and medium-budget films, jeopardizing the livelihoods of countless cine workers and technicians. Some industry insiders argue that a more balanced approach is needed, with a portion of the budget dedicated to medium-budget films (Rs 8-10 crore) and low-budget projects (Rs 2-3 crore). They point to the success of smaller films like “Baby,” which shattered box office records by collecting over Rs 50 crores.

In conclusion, veteran producer C Kalyan suggests that rather than slashing budgets, OTT platforms should consider diversifying their investments, much like they have in the Malayalam industry, where innovative content has proven lucrative. This approach could safeguard the interests of Tollywood, allowing for both big-ticket and smaller films to coexist and flourish. The industry now eagerly awaits the decisions of Netflix and Amazon Prime, hoping they reconsider the potential budget cuts and continue to be vital partners in the growth of Telugu cinema.