revenue sharing in cinema:
Everyone in the film industry seems to be doing fine—except the producer. The reason is simple: money goes out, but very little comes back. Audiences are not turning up to theatres, and OTT platforms are no longer buying films as aggressively as before. Producers are pouring in their blood and sweat to satisfy actors and bring directors’ visions to life, yet they are barely making any profits. In many cases, they are unable to even recover the basic production costs.
In this situation, producers are being forced to take a firm stand. Survival now demands tough decisions. The Tamil Film Producers Council has taken a bold step by announcing that they will no longer pay fixed remunerations to actors and technicians. Instead, they insist on a revenue-sharing model, stating clearly that films cannot be made otherwise. They have also warned that their protest will continue until a consensus is reached. Actors and technicians in Tamil cinema are yet to respond to this move.
Currently, remuneration costs have overtaken actual filmmaking expenses. For a film made on a budget of ₹100 crore, nearly ₹60–70 crore is being spent on salaries alone. If actors, directors, and actresses reduce their fees—or better yet, forgo them in exchange for a share in profits—it would offer significant relief to producers. If a film becomes a hit, everyone benefits.
However, the big question remains: who is willing to agree? Many top actors today won’t even listen to a script without receiving an advance. That said, a few leading stars have begun to reduce their fees and participate as co-producers. This model needs to be adopted more widely.
If this revenue-sharing approach succeeds in Tamil cinema, it could soon influence the Telugu film industry as well. Producers there may begin pushing actors and technicians toward similar arrangements, signaling a major shift in how films are financed and made.
