Many established producers are blaming only 4 to 5 producers, for ruining T-town, by unreasonably rising the remunerations of stars, actresses, directors and pushed regular producers out of business. In just span of 4 to 5 years, these producers have hiked the pay cheques of stars from 6 to 7 crores to 15 crores and above, directors fees from 3 to 4 crores to 12 crores, actresses from 40 lakhs to 2 crores, despite knowing that they can’t get any profit.
“These few inexperienced producers became star producer overnight by just announcing films with big stars- Pawan to Mahesh, NTR to Ram Charan and Prabhas- and rope in a top director and actress and borrow huge sums from the market to rotate big money and keep their banner afloat, at the end made Telugu film business a non-profitable proposition” says a source.
Already, few of these producers have piled up debts ranging from 40 crore to 60 crores per head and are literally hiding unable to repay the debts and bubble is going to burst, soon as as financiers are chasing them. “One or two flops, will put them in financial mess and unable to repay, they would run away, then regular banners will step in to save industry” he adds. Can you guess, who these producers, who punted the economic of Telugu cinema.