The Y S Jagan Mohan Reddy government in Andhra Pradesh has been firm on continuing the reduced ticket prices in cinema theatres across the state, notwithstanding the intense lobbying by the Telugu film industry in the last few months.
The stubborn attitude of the Jagan government is going to hit the film industry hard, particularly the producers of big ticket films which are up for release in the next couple of months.
According to sources, the buyers have decided to impose a cut on the prices they would pay to the producers for the films they have agreed to market in Andhra and Ceded areas.
It is learnt they would deduct at least 20 per cent of the amount they have agreed to pay before the production on the pretext that the ticket prices in these two areas in Andhra Pradesh are very low. It would mean the producers are going to lose at least Rs 60 crore in the next couple of months,
The first film that is going to bear the brunt of this ticket pricing policy of the Jagan government is “Akhanda” starring Nandamuri Balakrishna to be released in the first week of December. This film was bought for Rs 35 crore in Andhra and Rs 12 crore in Ceded areas.
Now that the ticket prices in cinema theatres in Andhra Pradesh have been slashed by the Jagan government, the buyers have demanded a reduction of 30 per cent in the payment to the producers. Finally, it was settled for 20 per cent reduction.
If the producers are not willing to reduce the payment, no buyer would come forward to buy the film. So, the producers are going to lose around Rs 9 crore on just one film – Akhanda.
Similarly, for Allu Arjun’s much hyped film Pushpa, the buyers had signed the agreement with producer to buy it for Rs 60 crore in Andhra and Rs 25 crore in Ceded areas. Now, they are asking for a 20 per cent cut in payment, amounting to Rs 15 crore.
For Rajamouli’s mega film RRR, the producers are likely to lose around Rs 28 crore, as it was proposed to market the film for Rs 100 crore in Andhra and Rs 40 crore in Ceded areas.
Many other big ticket films like Acharya, Bhimla Naik and Sarkar Vaari Paata are also getting ready for release. Taking the 20 per cent discount as being demanded by the buyers is taken into consideration, the producers are going to lose around Rs 70 crore.
This is the master stroke given by Jagan to the Telugu film industry. If the chief minister yields to the requests of the film industry or the recommendations of the committee headed by minister Perni Nani and increases the ticket prices, the Tollywood would be saved!