The Telugu film industry which boasts of producing the most number of films - only next to Hindi in the country- is facing a grim situation.
Satellite rights of films are hardly being bought nowadays. The rules of the game have also changed. According to film industry sources, 135 films for which preliminary process was gone through have also got stuck without being bought by a channel. The other channels too are showing little interest in buying the satellite rights of films, though a large number of films are being produced.
Until some time back, satellite rights were being bought even before the release of the film. That was a major source of income for the producer. Currently, television channels are said to be waiting to see if the film does well after its theatrical release to buy the rights. There may be some exceptions but the general trend that is now being followed has hit Telugu film producers hard. According to sources, some producers make films mainly with the intention of selling the satellite rights of film to a TV channel. With channels unwilling to now gamble on movies, the films have now no takers.
Apart from the 135 films that said to have got stuck with a particular channel not showing interest in buying the satellite rights after preliminary negotiations, the satellite rights of several other films too have not been bought by other channels which are also in the business. "We are in critical times. The film industry is going through a grim phase," a senior producer and office-bearer of the A P Film Chamber of Commerce said.
Sources said film heroes have been classified into different categories for the purpose of deciding the price for the satellite rights of their films. For example, in the 'A' category heroes like Pawan Kalyan, Mahesh Babu, Ram Charan Tej and Jr NTR figure. In the 'B' category there are names like Allu Arjun and Prabhas. In the 'C' category, senior heroes like Balakrishna, Venkatesh and Nagarjuna figure. In the 'D' category, Allari Naresh, Manchu Vishnu, Manchu Manoj are among some of the actors. There are also actors who fall under the 'E' and 'F' category but the satellite rights of their films are not purchased by television channels. The revenue is shared between the producer and the channel when the movie is telecast and generates ad revenue.
It is also possible that the heroes are shuffled from one category to category and this depends on their last success. Television channels depend on the advertisement revenue that is generating from the telecast of the film. The agreement could be for 10 years or for a perpetual period of time. Considering the economic situation, it is learnt that satellite rights of films are not being bought and even if they are bought, they are said to be being bought with the condition that the rights will be for a perpetual period of time.
Even in the case of big films, the satellite rights are now being bought for a much lower price than what the channels would otherwise have bought for a film featuring a big hero. It is learnt that the price is being cut down by 50 per cent by the channels. "Left without an option, producers are accepting such terms, even if they are not agreeable. At least they can get back some money, if not what they had expected, from selling the satellite rights," a producer said.
Satellite rights of films are hardly being bought nowadays. The rules of the game have also changed. According to film industry sources, 135 films for which preliminary process was gone through have also got stuck without being bought by a channel. The other channels too are showing little interest in buying the satellite rights of films, though a large number of films are being produced.
Until some time back, satellite rights were being bought even before the release of the film. That was a major source of income for the producer. Currently, television channels are said to be waiting to see if the film does well after its theatrical release to buy the rights. There may be some exceptions but the general trend that is now being followed has hit Telugu film producers hard. According to sources, some producers make films mainly with the intention of selling the satellite rights of film to a TV channel. With channels unwilling to now gamble on movies, the films have now no takers.
Apart from the 135 films that said to have got stuck with a particular channel not showing interest in buying the satellite rights after preliminary negotiations, the satellite rights of several other films too have not been bought by other channels which are also in the business. "We are in critical times. The film industry is going through a grim phase," a senior producer and office-bearer of the A P Film Chamber of Commerce said.
Sources said film heroes have been classified into different categories for the purpose of deciding the price for the satellite rights of their films. For example, in the 'A' category heroes like Pawan Kalyan, Mahesh Babu, Ram Charan Tej and Jr NTR figure. In the 'B' category there are names like Allu Arjun and Prabhas. In the 'C' category, senior heroes like Balakrishna, Venkatesh and Nagarjuna figure. In the 'D' category, Allari Naresh, Manchu Vishnu, Manchu Manoj are among some of the actors. There are also actors who fall under the 'E' and 'F' category but the satellite rights of their films are not purchased by television channels. The revenue is shared between the producer and the channel when the movie is telecast and generates ad revenue.
It is also possible that the heroes are shuffled from one category to category and this depends on their last success. Television channels depend on the advertisement revenue that is generating from the telecast of the film. The agreement could be for 10 years or for a perpetual period of time. Considering the economic situation, it is learnt that satellite rights of films are not being bought and even if they are bought, they are said to be being bought with the condition that the rights will be for a perpetual period of time.
Even in the case of big films, the satellite rights are now being bought for a much lower price than what the channels would otherwise have bought for a film featuring a big hero. It is learnt that the price is being cut down by 50 per cent by the channels. "Left without an option, producers are accepting such terms, even if they are not agreeable. At least they can get back some money, if not what they had expected, from selling the satellite rights," a producer said.
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