In a recent interview, star producer S Naga Vamsi predicted that the Telugu film industry's financial woes might worsen in a year if the current state of affairs holds or aggravates. Since non-theatrical revenue streams have taken a hit, financiers will stop pouring money into projects as before. They will restrict their choices, funding the movies of only those producers they completely trust. "Finances will dry up badly," Naga Vamsi said.
This can be averted only by reducing costs and increasing the success ratio. As things stand, the producers who matter aren't yet openly talking about the extravagant remunerations paid to big stars and directors. Unless the production costs come down drastically, the fall in revenues can't be offset.
The year 2025 has been bad for Telugu cinema, with most big heroes staying away from the box office. The failure of Game Changer and War 2 was a shocker. While War 2 didn't lose much, the profits it would have generated had it been a hit would have kept its distributors in a better position. Game Changer's losses were partly offset by Sankranthiki Vasthunam, but this was more of an okayish situation rather than an ideal one.
