Tollywood Bleeds by Sardar Pawan kalyan

Tollywood  Bleeds by Sardar Pawan kalyan:

Power Star Pawan Kalyan's Sardar Gabbar Singh which had massive release amidst huge expectations was expected to break many records shaking box office. However with huge negative talk right from the premiers, the film started bleeding Tollywood. 

Distributors who paid whopping Rs 100crs for the distribution rights for the film made with Rs 70crs budget are now reeling under losses and they may not recover even 25% of the amount. 

Even exhibitors are also suffering losses as the extent of losses each theatre owner bears depend on the agreements signed between distributors and exhibitors. Many exhibitors and distributors expecting the film to be a blockbuster signed profit sharing agreements and exhibitors paid huge amounts in advance to get the film from the distributors. 

One source reveals that an exhibitor was reportedly asked to pay Rs 40 lakh to screen the film in his theatre and the profits were to be shared as per the agreed ratio. However, even though the exhibitor paid a part of the amount, he now has no intention of paying the rest.

T.Venkata Krishna, secretary Telangana Telugu Film Distributors Association said “We do not have authentic figures as yet to say what the losses are. What is known for a fact is that both distributors and exhibitors have suffered losses. “On how the amount of looses could be shared, an exhibitor said “We usually do not get into legal tangles. Everyone in the trade is aware the film is not doing well. So we come to an understanding about how to tide over the crisis.”

Former president of Telangana Film Chamber of Commerce said "Sometimes, the distributors offset the losses for exhibitors by promising to give them their next film for a lesser price.” Chadalavada Srinivasa Rao, chairman, Telugu Chalanachitra Parirakshana Samithi (Telugu Films Protection Committee), said, “Distributors suffering losses means a big blow especially to small-budget films. They will not even have the money to buy small budget films for distribution now.”

Many times top stars set precedent by bearing the losses returning back remuneration to the producers, but the question is will Pawan kalyan take the lead.