Telugu Producers Increasing Burden On Tamil Producers

Tamil Producers are currently facing significant challenges in locking major projects, as top Tamil stars are now demanding extremely high remuneration. This shift is largely due to Telugu Producers, who have set a new standard by offering massive pay packages to Tamil actors, raising the overall market expectations. A few years ago, Tamil stars did not command such high fees, but the recent trend shows a complete turnaround, driven by the competitive offers from Telugu film Producers.

The trend began when Dil Raju offered a groundbreaking ₹100 crore remuneration to Vijay for the film Varasudu / Vaarisu, directed by Vamsi Paidipally, effectively raising the actor's market value. Vijay's fee eventually reached ₹105 crore excluding GST, and with GST included, the total remuneration hit ₹125 crore. Following this, Mythri Movie Makers offered a record ₹150 crore to Ajith for Good Bad Ugly, further inflating star salaries. Consequently, Ajith now demands even higher fees, putting Tamil Producers in a difficult position, especially as the OTT market experiences a downturn.

The success of films like Varisu and Good Bad Ugly has played a pivotal role in escalating Tamil actor remuneration, with Vijay already commanding very high fees. Producers are now struggling with the financial burden, as projects like Jana Nayagan underperform, and stars like Vijay remain inactive due to political commitments. Meanwhile, Ajith's increasing salary expectations continue to strain Tamil production budgets.

Overall, the aggressive remuneration offers from Telugu Producers have created a challenging environment for Tamil Producers, who now struggle to match the inflated star salaries while dealing with a declining OTT market and limited project pipelines. This dynamic has reshaped the Tamil film industry, making it essential for Producers to adapt to the new financial realities.