The Business of Tollywood: An appreciation of film costs

"Julayi" movie collects over Rs.11 crores in Nizam region. "Eega" movie collected over Rs.15 crs. in the same region during its 50-day run. "Sudigaadu" collected over Rs.2 crores in Hyderabad region alone in its first week clocking over 91 per cent occupancy on opening weekend. So, Tollywood has had a better run this year compared to previous year as many of big-star releases turned out to be good hits starting with "Businessman". The run of Tamil film releases this year dubbed into Telugu hasn't been that great despite increasing openness and awareness of Kollywood films in Andhra Pradesh.

Now that the starting bets have been good for Tollywood, the season in the second-half of the year is hotting up with some spectacular releases lined up. "Life is Beautiful"(Shekar Kammula), "Shirdi Sai" (Nagarjuna), "Rebel" (Prabhas), "Cameraman Ganga tho Rambabu" (Pawan Kalyan) and so on...looks like September - October will see some big-ticket releases including the much-awaited multi-starrer "Seethamma Vakitlo Siri Malle Chettu" (Mahesh and Venkatesh), we'll call it "SVSMC".

Let's guess how the costing of "SVSMC" will add up. I have taken a ball-park estimate based on some simplistic back-of-the-envelope calculations of how these costs will add up and later how they will be marked to recover. They may be wrong but I hope the thought process should clarify to you how film costs generally add up in budgets which are becoming huger and monstrous. It becomes necessary to understand them because the blind bets are placed by the group who are not impervious to the speculative nature of films - the Movie Distributor. Lets see an example, first, before we conclude:

"Seethamma Vakitlo Siri Malle Chettu" Movie Costs:

Superstar Mahesh Babu's Remuneration:  Rs.8 crores.
Victory Venkatesh's Remuneration:          Rs.4 crores.
Director's Remuneration/Music Director   Rs.2 crores.
Samantha's remuneration                          Rs.1 crore.
Miscellaneous artists remuneration            Rs.2 crores.
Miscellaneous technician's remuneration    Rs.3 crores
Shooting cost for 100 Days @Rs.5 lacs    Rs.5 crores.
                                                              -----------------
Total cost so far for SVSMC                    Rs.25  crores.

Since it is unlikely that the producer will bear all the costs by self, he will take loan @ 3 per cent from the money-lenders and financiers to fund this cost. That will be about Rs.4.50 crores. Or roughly, say Rs.5 crores. That means the total cost without budgeting any contingency run-ups and other escalations by delays caused due to other reasons comes to Rs.30 crores.

We haven't added the distribution and marketing costs including the audio function which is becoming an eye-ball attracting event. Considering these, it becomes imperative to keep costs and shooting schedules under tight leash and you have to raise the buzz about the movie well-before the release so that you can out-sell and recover the costs as effectively as possible.

How do we recover the costs?
Satellite rights recover a good sum, say Rs.6-8 crores. Then comes overseas territory sales which can fetch about Rs.3-5 crores. Then comes the big stakes of Andhra Pradesh which will be sold at whopping sums. Take Nizam Region, for example. Assuming each show sells Rs.20,000/- multiplied by 7 days multiplied by 5 shows average multiplied by 350 screens will give Rs.24.50 crores. Thats how the bets will start at first- then they will negotiate it down or up based on the eyeballs and added attractions in the movie. In this whole game, commercial banks play it safe in recovery of costs - they will not fund above Rs.5 crores and get away with their interest and principal repayments well before the release of the film.

The riskiest category will be the distributor who can expect a return in binary numbers, zero or one, meaning hit or flop. If its a hit, they rake it in. If its a flop, they are finished.

But coming back to the crux of the budgets, this is broadly how they stack up and this should give you an example of how film costs are incurred, how they are marketed and how they are recovered.

The Chiranjeevi Phenomenon

I wrote this piece on the occasion of Chiranjeevi's 57th birthday on August 9, 2012 which was published on http://www.frontpageindia.com/views/chiranjeevi-hero-love/36403

Chiranjeevi, the Hero we all love


When Chiranjeevi burst open his innings in Tollywood with “Praanam Khareedu” on Septemeber 22, 1978 (One month after his birthday), not many would have given him a half-chance. Tollywood was already in the grip of multiple matinee idols across multiple generations from NTR and ANR to Krishna, Shobhan Babu and Krishnam Raju besides star directors from Dasari Narayana Rao and K Vishwanath to Bapu and K Raghavendra Rao. Around the time his first movie was released, Chiranjeevi’s only claim to filmdom was as an actor struggling to find a foothold. Chiranjeevi had nothing to offer to what’s already not on fare – he is not hugely charismatic like NTR and SVR, nor had a lineage of filmy family. He could get hold of one such bargepole in the fomr of Allu Ramalingaiah when he married the latter’s daughter in 1980.


But Chiranjeevi had that killer instinct and the deep desire to create a unique position for himself – he tried various family fares playing the rogue liar in “Kothalarayudu”, the shrew-taming dummy husband in “Mogudu Kaavali” and the self-righteous do-gooder middle-class householder in “Intlo Raamayya Veedhilo Krishnayya”.

Almost all of them met with unexpected success at the most embryonic stage of his film career – one of them running for more than a year in some theatres. Fans – mostly toddlers, teenagers and housewives growing up in the anarchic years of the 1980s were hungry for a star who will project their aspirations, rebellions, frustrations and dreams on celluloid – they wanted a hero who is as rebellious as Krishnam Raju, a hero as dashing and daring as Krishna , a hero who is lovable like Shobanbabu and someone much more than all of them combined.

Chiranjeevi started feeding what the generation demanded from him very quickly acting in many movies, rotating directors and dialogue-writers and acting with the best in the industry – K Balachandar, Dasari, Raghavendra Rao, Bapu and Vishwanath. Fans loved the intensity of his eyes, the depth of his acting, and his dancing prowess quickly became the toast of a whole new generation who were fed on insipid dancing steps of veterans acting with half-opened shirts and bell-bottom trousers.

Chiranjeevi delivered the blockbuster “Khaidi” which positioned him as the new dashing hero and quickly followed more movies from Raghavendra Rao, Kodi Rama Krishna and Kodandarami Reddy – a director who relied on action dramas with light-hearted romances and the incredible storylines of ace novelist Yandamoori Veerendranath.

Chiranjeevi quickly became the darling of the masses as he belted out jubilee after jubilee hit with “Abhilaasha”, “Challenge”, “Raakshasudu” and “Marana Mridangam”. Like Amitabh Bacchan in Bollywood, movie scripts were written for him and artistes and heroines, technicians and writers all vied with one another in working with the first megastar of Tollywood.

Amongst the many trends he started, Chiranjeevi is famous for bringing in elegant dancing and stylish way of acting in tune with the rising tempo of music. He started the import of villain talent from Bollywood, and gave many technicians - choreographers (Raghava Lawrence), music directors (Mani Sharma, Raj-Koti), character actors (Amrish Puri, Prakash Raj, Kannada Prabhakar, Sarath Kumar) their major breaks.



Now with 149 films to his credit, Chiranjeevi’s career spans the most momentous period of Tollywood that marked the new decade after color productions, multi-starrers with excellent story scripts, the invasion of heroine as a star attraction, introduction of true item songs, choreography as a focal attraction of films, elevation of directors and dialogue-writers to cult status, intelligent use of fans and satellite and social media to enhance a star’s longevity, craze for audio release functions, and the undying craze for first-day-first-show tickets, heroes taking a cut in the distribution of movies as part of the remuneration, the list goes on…


Every five years or so, despite the unavoidable flops, Chiranjeevi systematically used the collective and imported talent in Tollywood to push new boundaries for himself, his family and for the industry. Today, Tollywood enjoys the best monetary status because of a huge star power and in-house talent of technicians from cinematographers and directors to music composers and story-writers, the credit goes to heroes like Chiranjeevi who pushed new boundaries for business of Tollywood.

When “Indra” was released amidst truly the first major audio event for Tollywood in the last decade, there was unprecedented frenzy – it sold close to a million cassettes on day one – there aren’t that many CDs sold even today.

Chiranjeevi, despite all the massive fan following is probably the second actor in Tollywood, after NTR, who has used the medium of Cinema to feed the adulation of the masses and gain symbiotic relationship to accelerate his family’s fortunes in Tollywood.

Because of his direct allegiance with fans, he has created many platforms to interact with them on a continuous basis. He is cognizant of the spinoffs that accrued to him over the years, and the payoffs that continue to others who turned up into films from his family – Pawan Kalyan, Allu Arjun, Ramcharan Tej.

Chiranjeevi and his brother-in-law Allu Aravind created fan clubs, organized them into strategic business units, fed their frenzy at all eventful functions, created websites that offer biographical wikipedias of the Chiranjeevi phenomenon, offered a bankable platform called “Blood Banks” which galvanized more of them into purposive actions which though met with unexpected controversies, and finally harmonized all the fans into one mega family of fans of Chiru the actor.

Even though he was lured into politics a good five years ago before he burst open on the scene with Praja Rajyam Party, Chiranjeevi is the second star-turned politican in the history of Tollywood to create some eyeball impact on the politics. Though his party fizzled out at the hustings in 2009, unable to create any impact with the themes of “social justice” and “inclusive growth”, the PR party managed to grab 17 per cent voting share of the population.

Even though he failed as a politician, Chiranjeevi continues to make attempts to avoid being sidelined by contemporary politics or where his heart lies – in Tollywood. He is now at the heart of Kapu politics in the Congress and continues to spar with the other Kapu politician Botsa in creating a position of power for himself and his community.

As a Tollywood biggie, his family continues to corner the best technicians and talent to turn out hit after hit and strive to be in heightened public currency from Pawan Kalyan’s “Gabbar Singh” to Ramcharan’s “Raccha” to Allu Arjun’s “Julayi”.

Chiranjeevi’s brother-in-law Allu Aravind who produced over 15 films (his best-ever producer) has created a triumvirate monopoly in Tollywood with control over distribution of movies along with producers Dil Raju and D Suresh Babu. As an investor, Chiranjeevi has been careful with his star remuneration and hasn’t over-invested in movies like other stars or created studios that lose money. He has invested in prime real estate and prime time television channels like MAA TV. As on date, MAA TV is rising to the top as a close contender to Gemini TV.

Now, he ponders over the next move whether to remain in politics or plunge back into movies to star in his 150th film now that the stars are aligned for his younger family members to take over Tollywood. As a towering hero in Tollywood, Chiranjeevi has been a phenomenon that’s hard to beat . But as a politician, he has been marginalized. What can beat him in happiness at this crucial birthday milestone is another movie after his own heart. Happy birthday, Chiranjeevi!
By Sridhar Sattiraju

Link: http://www.frontpageindia.com/views/chiranjeevi-hero-love/36403
http://www.frontpageindia.com/views/chiranjeevi-hero-love/36403

"Julayi" Movie Review (Telugu)

“Julayi” is definitely one of the most anticipated movies of 2012. It is an acid test for more than a threesome – Director Trivikram who struggled with form in “Mahesh Khaleja” , Allu Arjun who didn’t deliver a hit for a while, Producer Daanayya who’s missing his crores and dusky actress Ileana D’Cruz who is unable to capitalize on her early successes in Tollywood. All four of them needed a hit to resurrect their fortunes . I can’t say whether it’s a hit but the movie doesn’t disappoint – it is quite a wholesome family fare that’s worth a watch.

Director Trivikram Srinivas is one of the star writers who sharpened his narrative skills to make an Olympic triple jump into the hall of fame in Tollywood with terrific screenplay sense, story-telling with verve and an ability to weave many genres into one film. Besides, he can write dialogues that tug your hearts and make  classes and masses clap. Naturally, he is so skilled at writing, screenwriting and directing that one of the three has to outshine the other two. It started to happen around the time when he stopped writing for others (except “Teenmaar” recently) and went into directing. There’s an eclectic mixture of Western cinematic sensibilities with Telugu nativities in most of his narratives where he played a pivotal role in giving a tailormade script. “Manmathudu” drew inspiration from Mel Gibson movie “What women want”. “Athadu” which is a gold standard in modern Tollywood DVD collection is inspired from “Assassins” and so on.

There was some trouble with “Jalsa” and “Mahesh Khaleja” because he was carried away by the star charishma of Pawan Kalyan and Mahesh Babu and the result was either a concoction of neo-Indian pseudo-mythologicals (like an Amish Tripathi novel) or an an urbane take on Naxalism and other economic issues. At heart, Trivikram is a socialist who is inspired by an array of writers from 1920s onwards and all his movies bear a stamp of egalitarianism, inclusive growth and a society that should benefit many not just a chosen few. In between, Trivikram can pack a punch of dialogues that spark off uproarious laughter with both senior and junior artistes. Over the few films he has made, Trivikram has graduated from making unoriginal, punny, school-boyish. joke-book-collection of snippets into more classy, ingenious and Wodehousian sense of humor that sticks. Nothwithstanding this long digression into Trivikram’s style and its origins as seen by a consummate bystander, “Julayi” is an outcome of a renewed Trivikram who has learnt from his experiments that were indulgent in the past. It shows Trivikram’s amazing sense of dialogues that are sharper, wittier and also a return to responsible film-making - a'la the likes of Sreenu Vaitla and Shekar Kammula. However, unlike Shekar Kammula, Trivikram has the ambidexterous knack of appealing to A-class audiences while giving what the masses want to see – non-preachy entertainment, plenty of action, dances and romance that sizzles.

“Julayi” is a balanced film in all of that – it has a huge starcast from Brahmanandam, Ali, Tanikella Bharani, MS Narayana and Kota to veteran Rajendra Prasad, Sonu Sood besides Allu Arjun and Ileana. The story is quite average but the narration is pulsating. Ravi (Allu Arjun) is a naïve youth who believes in making money in a non-linear route; he bets with his father one day that a 10k bundle of cash can be converted into 100k in just two hours. Obviously, Ravi had plans to bet on the IPL matches when he challenged his dad with the deal. His bravado leads him to an episodic run-in with professional killers led by Sonu Sood and Kota Srinivas Rao who plan to usurp a bank’s millions. It sets him off as a cat amongst pigeons because the villains realize that Ravi is a smart aleck who needs more than their mite to be outwitted. The ending is happier even if smaller - the hero polishes off the villains and returns to a cosy job that nets a salary of 25k per month. The message is loud and clear: – hardwork and accumulation of money through self-effort is sweeter than Manna from heaven or mad pursuit of speculative endeavours. The movie has  dramatic flashes of car chases, stunts and a sweet romance with Ileana and oodles of comedy with Rajendra Prasad, Brahmanandam and gang. Allu Arjun is clearly a striking style icon who has finally got a plot that showcases his acting prowessand a director who will give the outreach that he deserves. He is at ease with himself and with the mature starcast that shares the screen. According to me, he is the best dancer in Tollywood and his dancing skills need no attestations. In this movie, DSP’s music has given enough footage to Allu Arjun to get foot-loose. He excels himself again but the dance movements could have had a better frontal view than a sideward, silhouetted slideshow. He could have bettered there.

DSP’s music has topped the charts well before the movie and he has created just the right moods for all the songs. Picturisation of the songs could have been better for a couple of songs. The song before climax and the song before interval are quite vivid and memorable. Ileana would have wanted this movie to give a fresh lease of life. Unfortunately, her acting skills and the range of expressions never permit this – she is stubbornly stale and hopeless. The outage of glamor we saw of Ileana after “Kick”, I am afraid will continue nothwithstanding her role in this film. Rajendra Prasad stands out with a full-length performance that almost runs parallel to the hero – this should be heartening to all his fans.

One last word on the flaws of the film. Trivikram sometimes takes logic to onerously outlandish levels for one part of the story while implanting inscrutable logic to other parts. The manner in which the heist is done by the villains of a bank and their escape from custody with lot of bloodshed is illogical even as the hero Ravi tries to second-guess every move of the villain even as the police look downright dumb beats sanity out of mind. Nevertheless, Trivikram has taken the genre of entertainment to new highs with his characteristic ease of blending action and intelligent-looking plots with a rich ensemble of talent and still penning dialogues that haunt you forever. Even the best writers need better editors , Trivikram will realise– but for now, even 160 minutes of a not-so-sublime plot is good enough reason to open the champagne for those who like to see his report card. He’s earned an A not an A-plus and I will give atleast 3.5 out of 5 for the film.