Bollywood and its stars must stop bleeding producers dry. Southern cinema has lessons to teach us

Last month saw the release of Kalki 2898 ADand as of July 4, the film starring Prabhas has grossed over Rs 700 crore at the box office. The success of this Tollywood film has naturally drawn comparisons with the Hindi film industry, with its recent failures being highlighted. Bade Miyan Chote Miyan The film’s fiasco only heightened these concerns. Its box-office failure was followed by allegations from crew members that Pooja Entertainment, the production house backing the film, had not yet paid them their dues. In fact, actor Akshay Kumar should have stepped in and asked the company to clear the dues before paying him.

The turmoil in Bollywood has created a veritable hornet’s nest, and many feel that a change of direction is urgently needed. There is much talk about the exorbitant star fees and management fees, and writers, cinematographers and other crew members have started speaking out about the extreme disparity in pay structures in the Hindi film industry.

Every Friday counts

While Bollywood stars have been able to command exorbitant fees for years, the Covid-19 pandemic has brought about many changes. The Hindi film industry has been through a deep turbulence and some say it has yet to recover. Only Shah Rukh Khan has managed to produce blockbusters in the last two years. A string of Hindi films by big stars, like Jayeshbhai Jordaar, Laal Singh Chaddha, Ram Setu, Circus, Adipurush, Selfie, Maidaan And Bade Miyan Chote Miyanwere all box office failures, causing great concern among producers and actors.

In 2022, filmmaker SS Rajamouli had pointed out that the decline of Hindi cinema that year – considered one of the worst periods in Bollywood history – was due to the high fees paid to actors and directors. “What happened once corporates started entering the Hindi film industry and started paying high fees to actors, directors and companies, the need for ‘I have to succeed at all costs’ diminished a little bit; the thirst (to succeed) diminished a little bit. Here in the South, that was not the case. You have to swim or you will sink.”

A popular director in the South film industry, who wished to remain anonymous, spoke about the high fees of stars and the entourage costs. “Remember that every Friday counts. If a star becomes too expensive for a producer, he is already on tenterhooks and the star insists, as long as the star succeeds and sells tickets on Friday, Saturday and Sunday, they will curse in a low voice but continue to hire the star. But the moment the star fails two or three times, they drop him like a hot potato and the person becomes invisible. At that stage, no one wants to bear it anymore. So stars have to find a balance and know when they are increasing a producer’s expenses beyond the limit.”

The economics of a project

However, Pankaj Jaysinh of UFO Moviez India says that it is the producers who have the final say in a project and stars should not be blamed for their high fees and costs. “There is no doubt that big names are expensive, but it is a question of economics (demand versus supply). If multiple film producers are chasing a star, he or she will increase his or her fees, and vice versa. And it is not that only star-studded films are hits. There have been content-based films made for Rs 20-40 crore, like Munjya, Madgaon Express, Teri Baaton Mein Uljha Jiyawhich has worked well. Audiences also like good content and stars don’t matter in this case. There are also experiential films made with budgets of Rs 100-300 crores like Kalki, Fighter And Pathan“Here, the audience wants to see grandeur and stars. So, a producer, depending on his budget, always has the option of opting for one or the other of these categories. It is up to the producer to decide. I don’t think you can blame the stars for their high costs,” he emphasizes.

The fact is that most Bollywood stars come to the sets with their entire crew (sometimes up to 20 people, including stylists, nutritionists, hairdressers, gym trainers, bouncers, etc.), and the producer usually has no problem – sometimes no choice – to shell out the money. It is the writers and other crew members who pay the price and get shortchanged for their work. It is no secret that writers are among the lowest paid members of the Indian film industry. Atika Chohan, known for Margarita with a straw (2014), Chhapaak (2020) and Oulajh (2024), says, “Production budgets leave no room for writers and development, and that’s a fact. No one is taking risks with new ideas and voices, while everyone is spending money on actors who bring nothing new to the table, except extreme losses. This is one of the major contributing factors to the current industry slump and market correction. In Bollywood, actors take it as an insult not to be pampered like gods. It’s embarrassing.”

A better economic model

There may be another business model that could work. Filmmaker Anurag Kashyap recently explained that the big Khans of B-Town – Shah Rukh, Salman and Aamir – do not charge a fee for their films and hence their films are easier to produce. “They take profits at the end of the production, so their films are never costly,” Kashyap said.

The South also has lessons to learn. While Bollywood producers are grappling with star fees, management fees and the like, the South film industry has shown remarkable cost sensitivity. Kannada filmmaker Anup Bhandari, who recently worked with superstar Sudeep in Vikrant Ronasays actors here are very conscious. “In the South, especially in the Kannada film industry, actors are much more conscious about not burdening producers. Their entourage mainly consists of their staff and a few key people. I have also seen actors asking producers to make sure they stick to the budget and some have gone out of their way to help producers pay the costs,” says the Rangi Taranga True, even the South has some big, expensive names, but industry analysts say this is justifiable because of their huge market, not just across India but also internationally.

Post-COVID-19, many in the Hindi film industry, including producers, studio heads and senior executives, are expecting a market correction, starting with star fees. The unpredictability of the entertainment industry, coupled with an ever-changing audience flooded with options, means that quality and meeting expectations are paramount today.

The need of the hour is a profitable and healthy ecosystem.” Compare the Hindi film industry to the business models in Kerala, where actors produce good cinema. Take, for example, Mammootty Kaathal The Coreand every film by Fahad Faasil. These are examples of a healthy film economy and a creative ecosystem.”

As one trade analyst pointed out, Bollywood should perhaps take a cue from the South film industry to get back on the path to profitability – not just in terms of content but also in terms of production costs.

(The author is a veteran entertainment journalist and film critic)

Disclaimer: These are the author’s personal opinions.