Telugu film industry is primarily classified as small films, mid range and high budget films. Everybody cannot get the scope to make big films even if they wish to.
Small films hardly pull audiences to theatres. So mid range films were in the reach of many who wish to give a serious try. But now, those mid range films are also getting into deep trouble.
Until a few years ago, the mid range films could be completed at a budget of Rs 20 Cr including everything. But now, the remuneration of the cast and crew of such films itself is touching Rs 15 Cr. Another Rs 20 Cr is being burned to produce the film. In fact there are bigger films within the mid range films. They squeeze out around Rs 50 Cr on a whole.
The heroes have increased their remunerations by showing the increase in non theatrical rights. Now mid range heroes are not available in less than Rs 8 Cr range. Sai Dharam is taking Rs 8 Cr, Varun Tej Rs 10 Cr, Nani is at Rs 12 Cr, Sharwanand at Rs 8 Cr, Nithiin at Rs 8 Cr, Ram at Rs 12 Cr and Naga Chiatanya is at Rs 10 Cr as per grapevine in Tollywood circles.
As per the insiders the senior heroes are also expensive these days. Venkatesh is taking Rs 12 Cr, Ravi Teja 18 Cr and Balakrishna Rs 12 Cr according to sources.
All midrange heroes want either DSP or Thaman as music directors. They demand not less than Rs 3 Cr. If they go for a good Cinematographer it costs Rs 1.5 Cr. If the director is debutant then ok, but if it is a noted director the minimum paycheck is above Rs 5 Cr.
If the heroines are noted, their remuneration starts from Rs 75 lakh and if they score a single hit, then it is going to Rs 1 Cr.
After all these expenses, they have to confine only with non theatrical rights and the collections at the theatre are proving miserable these days. The losses are becoming inevitable as the theatre business for mid range films has become only a lucky bonus but not the main source of income.
The economics of the mid range films will be understood after the films of all heroes in this range get released. Depending on the situation, the business evaluation and remunerations may change.