Tollywood producers extremely worried
Why Tollywood producers are worried
Most of the releases in 2026 except for Chiranjeevi's Mana Shankara Vara Prasad Garu failed to set the screens on fire.
This is a worrying phenomenon for the industry and inside talk is Tollywood producers are extremely worried. Even the films which the makers claim to be a hit are struggling at the box office.
Warning Bells
A distributor warns “This is the most alarming trend. Even Prabhas and Pawan Kalyan are able to pull audiences only for the first one or two days. It clearly shows that relying solely on charisma is no longer enough. Stars must focus on strong content, or their stardom will start fading,”
Weak Content
The so called content driven films like Euphoria, Psych Siddhartha, Seetha Payanam, Hey Balwanth, S Saraswati, and Band Melam failed at the box office, and even sports based film Biker, Paapam Pratham, Bad Boy Karthik, and Thimmarajupalli TV failed to pull viewers to the theatres.
Audience Pulse
Producer Raj Kandukuri says “It is a tough time for content-driven and small-budget films,” and adds “Films today need strong endorsement for audiences to decide whether they are worth watching. The new-generation audience is showing less interest in coming to theatres, as they have plenty of content available on OTTs. The scorching summer and ongoing IPL matches have ensured that footfalls have dropped further. Producers are truly clueless.”
He continues “Making a film is like writing an exam and waiting for results. If the ‘teacher’— the audience — doesn’t respond at all, neither approving nor rejecting, it becomes even more worrying for new-age actors and directors.”
Lack of Interest from OTTs
A senior producer shares “We don’t know for whom we are making films anymore. OTT rates have fallen to just 20–30% of what they used to be, leaving us with no reliable way to recover investments.”
He adds . “Digital platforms once paid Rs 50–70 crore per film, helping them build a strong Telugu viewership base. But later, they slashed budgets drastically and introduced new rules, including pay cuts.” and criticises “They are equating box office collections with OTT value, even though the audiences are completely different. This is unfair,”
Problems with the Payment
He shares “Payments are now split into four instalments. If a film underperforms in theatres, platforms skip the last one or two instalments. Producers are forced to absorb the losses,"
C.Kalyan says “It is true that digital giants have reduced their intake of Telugu movies, and this has set alarm bells ringing in the industry. It’s a worrying situation. Earlier, digital rights would cover a major portion of a star film’s budget. Now, with reduced OTT spending, we are in dire straits.”
He questiones “During the OTT boom, actors and directors significantly increased their fees. Now that digital platforms have cut back, will they reduce their pay to ease the burden on producers?”
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