The overseas market has become a vital revenue stream for the Telugu film industry. With the rise of pan-India films, this global reach has expanded even further, and collections from international markets have reached astonishing levels.
For instance, a major Telugu hero’s film that can generate a share collection of ₹80 crore in the Nizam region might bring in as much as ₹100 crore from the USA and Canada combined.
However, the overseas market is plagued by significant malpractices in reporting gross and share collections, particularly in North American and European theaters.
Many in the industry allege that distributors are manipulating figures, exploiting the lack of oversight. While these discrepancies often go unnoticed for flop films, they reportedly lead to losses for producers when a film becomes a massive hit.
The increasing scale of business, with distributors investing close to ₹100 crore for overseas rights, adds to the complexity. To minimize risks, some distributors propose "returnable advance" deals, where producers receive up to ₹50-₹80 crore upfront, along with commission-based agreements. Producers often accept such offers to secure financial safety.
Recently, Swapna Dutt, a prominent Tollywood producer with strong ties in the USA and Europe, expressed frustration over being deceived in such deals. If an experienced producer like her faces these challenges, the losses for larger banners like Hombale Films (Salaar) could be even more significant.
A large portion of these malpractices reportedly occurs in single-screen theaters owned by Telugu communities in the USA. While first-day collections are generally accurate due to higher scrutiny, discrepancies often begin from the third or fourth day, with distributors allegedly underreporting gross collections and pocketing the difference. The lack of proper monitoring in these theaters makes cross-verification nearly impossible.
To address this, Tollywood producers need to consider establishing their own offices in the USA and Europe. By signing agreements directly with multiplex theater chains, producers can bypass intermediaries, ensuring accurate reporting and greater profits. Leading Tollywood producers could appoint trusted family members or representatives to oversee overseas operations.
Swapna Dutt has already started auditing discrepancies in collections for films like Kalki. However, her efforts alone won’t provide a permanent solution. The entire industry must adopt systemic changes to eliminate middlemen and ensure transparency in overseas revenue.
By taking direct control of overseas distribution, Tollywood producers can secure more accurate revenue reporting, reduce losses, and further strengthen the Telugu film industry's position on the global stage.
