The protagonists in this plot are the two kinds of producers: the big and the small. The first, called Aa Naluguru (Those Four), comprises starturnedpolitician Chiranjeevi's brotherinlaw Allu Aravind, noted director D Rama Naidu's son D Suresh Babu, upstart producer Dil Raju and media baron Ramoji Rao. The small producers harbour a grouse against them: the foursome, who control about 700 of the 2,000odd theatres in Andhra Pradesh, charge a weekly rental of Rs 1.5lakh per film - unlike the earlier percentage system which ensured a shared collection between the producer and the exhibitor. The allegation is that Aa Naluguru are killing smallbudget films by hiking the rent and not allowing small producers to screen their films in the good theatres. ''They are sucking the poor producers' blood,'' says veteran directorcumproducer Dasari Narayana Rao, a former Union minister who has declared a war against the Four.
Of the nearly 700 theatres the Four control, Dil Raju reportedly holds 130, and Suresh Babu and Allu Aravind hold about 170 each. Director Siva Nageswara Rao says that they earn about Rs 200 crore between them every year from their theatres alone.
But why won't the big producers screen small films? "Untrue allegation,'' says Suresh Babu. "First, who's a small producer? Quality matters. If a film is good, people watch it and theatre owners run it," he shrugs, citing the examples of Happy Days and Ashta Chamma. On the contrary, Rajastarrer Inkosaari was recently pulled from a theatre after tickets sold in single digits.
Suresh Babu says Aa Naluguru has taken on least 638 of the 1,840odd theatres operational in the state. "My own group runs only four per cent of them," he claims, adding the lessee incurs considerable expenditure to keep the theatre in a good condition. The 600plus theatres in their hands are the only good ones in the state. Siva Nageshwar Rao admits as much as do those opposing the Aa Naluguru, like producer Nattikumar.
Keeping pace with changes
Tollywood's distribution system has changed much. Thirty years ago, the risk was borne entirely by the producer who would borrow money from financiers to make a film. The distributor used to pay an advance to the producer and in turn get into an arrangement with the theatre owner. If the film clicked, they shared the collections.
As time passed, producers began to sell movie rights to distributors in a bid to reduce risk. Films thus became a distributor's gamble. A staggering 80 per cent failure rate of films made it became unviable for theatre owners too. Thus evolved the lease system, wherein theatre owners leased out their theatres to producers like Suresh Babu. "It is not illegal," he says. "The rents we charge are either on par or less than what's charged in other states.
"The rents ensure that the exhibitor doesn't lose. But Nattikumar, Jeevitha and other small producers beg to differ. "A few families are controlling the industry," alleges actressturnedproducer Jeevitha.
"They choose the movies that'll be screened, and promote those of their kin. We have to go and beg them to screen our movies in their theaters. If they refuse, we don't have theatres to screen our films. It's not just the hefty rent, even the ticket collections are shared by these big producers and not between the exhibitor and the producer." Counters Suresh Babu: "If some families put in all their efforts in the industry, is it wrong to want to build infrastructure from studios and labs down to theatres?"
The rush for revenue andamp; costcutting measures
The arrival of multiplexes, poor quality of films and piracy have made the lease system and prerelease publicity blitzkriegs the norm. The rush is to mop up maximum revenue in the first two weeks, making it tough for small producers to mobilise resources to promote their films. "Even financiers don't come forward," says Siva Nageswar Rao. Adds Suresh Babu: "Multiplexes are housed in malls - it requires money. If theatre business was lucrative, why are no new theatres coming up? In fact, hundreds of them have closed down in the last few years." He believes a workable movie is the lone solution. But its alchemy, as always, is a mystery. Herein lies the catch. Small producers wonder if the Four have got the hang of it.
Veteran director-producer Tammareddy Bharadwaja supports the small fish, but treads a fine line. "The controversy wouldn't be there if producers come up with good movies," he opines and says costcutting (on sets, etc) should be taken up seriously. The Producers Council recently decided to form a panel headed by Dil Raju to suggest ways on this, including reducing stars' remuneration (see box). Bharadwaja believes it won't work: "If a hero clicks, he is going to charge more." Dasari and Suresh Babu agree.
Clearly, Tollywood is a disunited lot. "Everybody wants to save his own skin," comments a director who didn't want to be named. "Even Dasari, who is now upping the ante, had earlier controlled some theatres. He only wants screen space for his forthcoming Young India."
Govt as regulator
The small producers want the state to play a regulator's role. A delegation led by Dasari recently met ministers Geeta Reddy and Sabita Indra Reddy, wanting the government to ensure that small producers' films get at least a fixed number of theatres for a certain number of prints, about 50, for a few weeks. "We've got a positive response," says Nageswara Rao. "If the Four agree to it, instead of the weekly rent, small producers will offer a percentage of the returns depending on the film's run at the box office." Others, like Suresh Babu, aren't happy: "If helping producers is the motto, let the government provide open training institutes for actors, writers, etc. Reducing the already low cinema ticket prices and controlling theatres are not the right answers." Dasari says his war is on, but won't divulge the details.
Against this backdrop brews another storm that may well see the small producers out of town once and for all. "I envision myself as a newage "movie mogul" and recreate a Hollywoodstyle studio in Andhra Pradesh," declares Allu Sirish, son of Allu Aravind, on his blog. The dream of this 23yearold CEO and virtually one of the owners of Geeta Arts, Aravind's production house, in his own words: "From an independent producerdriven enterprise, we aspire to become a fullfledged Hollywoodlike studio with a presence in film production, distribution andamp; exhibition. Rather than a Warner Bros (owned by Time Warner), or 20th Century Fox (owned by News Corp), we'd like to be something like a Lionsgate or Dreamworks SKG, which is independent and not owned by any conglomerate." If that happens, it might be 'The End' for small producers.
- chakravarthy@expressbuzz.com