Film distribution is a task that looks colorful to the outside, but the fact is, it’s a double-edged sword. It can benefit the holder or sometimes may cut himself. As the Telugu film industry expands its wings, the United States market is all open for Tollywood. American distributors are buying Telugu movies by paying hefty amounts considering this trend. A business is said to be profitable only if the product is bought at a low price and sold for a high price with a good margin. But, the US distributors are so much into buying Telugu films that they forget the basic formula of a business.
Many movies that were released recently had bombed at the box office. Distributors poured in Rs.Crores., thinking that the audience would throng the theatres with the hype. Contrary to their belief, the audience bluntly rejected a lot of movies. Yes, it’s the NRI community we are talking about. They love movies too, and most of the decent films released there do good. But, it’s not the case with recent flicks. Of late, only a few movies like Pushpa, Akhanda, and KGF 2 brought profits to the US Telugu movie distributors. Even the RRR movie has ended as just a break-even film because of the enormous rates demanded by the movie team. Also, ticket prices are an issue in the US market, similar to the Telugu states’ ticket prices for the past few films. Moviegoers are frustrated because of the huge rates and are unwilling to go to theatres to see movies. In a nutshell, a decent film with marginal rates only will save the distributors in the US rather than colossal ticket prices for a movie with high cost, says the trade pundits.