The Pan-India wave was once hailed as Tollywood‘s biggest success story. Films like Baahubali, Pushpa, RRR, and Kalki 2898 AD raised Tollywood standards in global market. But now time have changed the business model behind these ambitious films is now facing a major reality check.
One of the biggest concerns for producers today is the sharp decline in OTT valuations. A few years ago, OTT rights were a major source of revenue. Producers could recover a substantial portion of a film’s budget even before its theatrical release.
But Now Streaming platforms are becoming more selective, quoting significantly lower prices than they did during the post-pandemic boom which makes producer rethink on Big budget films.
With rising production costs, escalating actor remunerations, expensive VFX, and uncertainty in satellite and overseas markets, producers are no longer willing to take the same risks they did during the Pan-India boom. Unless a project has exceptional commercial potential or a proven box-office draw, many films are seeing budget revisions, delays, or even shelving.
