Tollywood producer wonders for whom they are making films. Tollywood churns out highest number of films every year across the country but however, the success rate is less than 5 percent and this is a worrying factor for everyone as theatres are wearing an empty look, producers and distributors plunging into huge losses.
2026 is also turning out to be no different as till now except for one or two films, none of them entered into a profit zone. In the midst of all this, a senior Tollywood producer who made films with top stars like Pawan Kalyan, Jr NTR and Ravi Teja on condition of anonymity came out with the shocker.
He said “We don’t know for whom we are making films these days,” He continued “OTT rates have fallen to just 20–30% of their earlier value, leaving us with no proper avenue to recover our investments.”
He shared “Digital platforms once paid ₹50–70 crore per film. Telugu producers entered that space, and platforms gained massive Telugu viewership. But after that, they slashed budgets drastically and introduced new rules, including pay cuts.”
He said “They are equating theatrical collections with OTT rates, even though the audiences for both are completely different. This is unfair.”
He pointed out “Payments are split into four instalments. If a film underperforms in theatres, they skip the last one or two instalments. Producers are left with no voice and are forced to suffer in silence.”
He questions “Earlier, we made films for theatre-going audiences. Now, with new-age viewers skipping cinemas, we don’t even know who we are making films for." and adds " Only a handful of stars—like Prabhas, Mahesh Babu, Jr NTR, Allu Arjun, Ram Charan, and veterans like Chiranjeevi and Nandamuri Balakrishna—continue to command a steady theatrical market. “What about the rest producers, directors, and actors who don’t enjoy such footfalls.”
He concludes “A film today is either a blockbuster or a complete flop—there’s no middle ground. It has turned into a buyer’s market where producers have little control despite investing everything. Being a producer today is more pain than passion, except for a few big production houses.”
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 worrisome situation, and most producers are clueless,” he goes on “For star-driven films, digital rights used to cover a major portion of the budget. Now, with reduced OTT spending, we are in dire straits.”
He questions “During the OTT boom, superstars and directors hiked their pay significantly. Now that digital platforms have cut back, will they reduce their fees to ease the burden on producers?” C.Kalyan says “Earlier, satellite rights from television channels ensured advance payments once a film was launched. Now, OTT platforms don’t offer such upfront deals. Instead, they impose lengthy agreements with multiple clauses—ranging from expected box office performance to revenue benchmarks—before signing any deal.”