Mumbai: Mid-budget southern films lacking any established stars have not only been increasingly successful over the past two years but also generated superior return on investment (RoI) than high-budget superstar-led projects, marking a sharp shift toward content-driven productions.
This segment is emerging as a reliable business model, especially at a time when big-budget star-studded films are frequently delivering thin margins, said producers, film trade analysts and content deal syndicators.
Many films made within an estimated budget of ₹10 crore - such as Little Hearts and Anaganaga Oka Raju (Telugu), Tourist Family and Youth (Tamil), Su From So and Love Mocktail 3 (Kannada) and Premalu, Kishkindha Kaandam and Vaazha: Biopic of a Billion Boys (Malayalam) - generated box office collection of 40-140 crore, said trade analysts. For instance, the latest Malayalam sequel Vaazha 2: Biopic of a Billion Bros, has grossed ₹100 crore on a budget of ₹10 crore, indicating a staggering 900% RoI.
Return on Investment of 5-10x
“The biggest disruption in the southern cinema today is not scale but efficiency of returns. Mid-budget films made for less than `10 crore are generating five to ten times returns,” said Su- niel Wadhwa, co-founder and director, Karmic Films.
“This makes mid- budget films one of the most efficient and scalable opportunities for produ- cers and distributors.” Stars no longer guarantee business in southern films, with the result that the role of the script has become pa- ramount for makers, accor- ding to analysts. “Today, script is king. A bad film of a southern star loses the audience’s interest right after the morning or noon show through strong word-of-mouth com- munication on social me- dia,” said Sreedhar Pillai, a veteran trade analyst. “His- torically, Malayalam cine- ma has always been known for non-star content-orien- ted films. But, today, we are seeing similar trends in other languages in the so- uth too.”
The youth and family au- diences have a large role to play in the success of the non-star films. “Unlike star-studded films, these mid-budget films open slowly. But their collections grow so well or- ganically that in the long run they beat even big-bud- get films in returns. Today’s youth—late teens to 34 year- s—is not awed by stars. Con- tent—its novelty and fresh- ness—drives the youth to theatres,” said Chennai-ba- sed entertainment sector analyst Ramesh Bala.
“Family audiences are drawn to these mid-budget films largely because they deal with highly relatable universal themes and valu- es. Also, since the stakes are low, makers experiment a lot in these films by blen- ding and innovating with genres through conviction- based storytelling," he ad- ded. Bala cited the Tamil film Youth, for instance, which appealed both to the youth and family audiences. The film focuses on a school stu- dent’s journey to becoming a mature and responsible person. Significantly, the rise of well-scripted mid-budget southern films can partly be attributed to streamers and broadcasters.
This segment is emerging as a reliable business model, especially at a time when big-budget star-studded films are frequently delivering thin margins, said producers, film trade analysts and content deal syndicators.
Many films made within an estimated budget of ₹10 crore - such as Little Hearts and Anaganaga Oka Raju (Telugu), Tourist Family and Youth (Tamil), Su From So and Love Mocktail 3 (Kannada) and Premalu, Kishkindha Kaandam and Vaazha: Biopic of a Billion Boys (Malayalam) - generated box office collection of 40-140 crore, said trade analysts. For instance, the latest Malayalam sequel Vaazha 2: Biopic of a Billion Bros, has grossed ₹100 crore on a budget of ₹10 crore, indicating a staggering 900% RoI.
“The biggest disruption in the southern cinema today is not scale but efficiency of returns. Mid-budget films made for less than `10 crore are generating five to ten times returns,” said Su- niel Wadhwa, co-founder and director, Karmic Films.
“This makes mid- budget films one of the most efficient and scalable opportunities for produ- cers and distributors.” Stars no longer guarantee business in southern films, with the result that the role of the script has become pa- ramount for makers, accor- ding to analysts. “Today, script is king. A bad film of a southern star loses the audience’s interest right after the morning or noon show through strong word-of-mouth com- munication on social me- dia,” said Sreedhar Pillai, a veteran trade analyst. “His- torically, Malayalam cine- ma has always been known for non-star content-orien- ted films. But, today, we are seeing similar trends in other languages in the so- uth too.”
“Family audiences are drawn to these mid-budget films largely because they deal with highly relatable universal themes and valu- es. Also, since the stakes are low, makers experiment a lot in these films by blen- ding and innovating with genres through conviction- based storytelling," he ad- ded. Bala cited the Tamil film Youth, for instance, which appealed both to the youth and family audiences. The film focuses on a school stu- dent’s journey to becoming a mature and responsible person. Significantly, the rise of well-scripted mid-budget southern films can partly be attributed to streamers and broadcasters.
