Tollywood in throes of crisis

FIRST PERSON/G ADISESHAGIRI RAO

Ghattamaneni Adiseshagiri Rao is the president of Andhra Pradesh Film Chambers of Commerce (APFCC). Known for his non-controversial and down-to-earth nature, he rendered his services as the vice-president of APFCC from 1993 till he assumed charge as its president in 2003.

He has been at the forefront of resolving several issues dogging the film industry in the state. As a film and TV producer, he produced more than 100 films including 25 in Hindi.

Speaking to Business Standard, Adiseshagiri Rao, who is also the vice-president of Film Federation of India, brings to fore the problems being faced by Tollywood, and explains the measures taken by APFCC. Excerpts:

What is the main reason for the dismal show by the Telugu film industry in 2003?

The deteriorating conditions can largely be attributed to the burgeoning costs of production, high admission rates in theatres, the influence of small screen and video piracy.

The problem lies not only in the upsurge of production costs, but also in the lack of original scripts. When the storyline is weak, concealing it under the flamboyance of glamourous sets, western outfits and jarring music can do little to rake in profits.

Furthermore, many new investors from other business concerns are foraying into film production without knowing the nuances of film-making, resulting in the escalating costs of production.

Besides, the increasing admission rates too are playing a spoilsport. At one time, cinema was within the reach of common folks. Now, the fee for vehicle parking, rates of admission, snacks and beverages are being hiked and unchecked.

Further, the influence of TV and video piracy are weaning away the cine goers. Even the hardcore Telugu cinema fans have started shifting to the small screen, and are preferring a rented VCD of new film to watching it on the large screen.

As the president of APFCC, what steps did you take to curb video piracy?

The VCD piracy has been cutting into the revenues of the film industry for the last few years. In a bid to arrest it, we launched an anti-piracy cell, and have conducted a series of raids on their hideouts. From June 10 to December 10 this year, we seized 9,943 VCDs worth Rs 22,18,945.

The industry loses approximately Rs 300 crore due to the piracy menace. Despite our efforts, the offenders are getting away scot-free because of several loopholes in the law.

We urged the government to include piracy in the Organised Crime Act which punishes the offenders with upto 3 years of imprisonment or a fine of upto Rs 1 lakh.

It is time the government took stringent steps to curb the VCD piracy as it is also losing 25 per cent of revenue by way of taxes.

Releasing mega budget movies with excess prints has become a fad. Doesn't this further burden the industry?

Not at all. In fact, this is a healthy trend, and is the only way to curb piracy and have a better reach to the public, besides generating huge box office revenues.

But there are instances when a few producers run their movies for 50-100 days with deficit collections.

To check this, the film chamber has taken a decision not to run a movie for 50 days with a deficit of one week, 100 days with a deficit of two weeks and 175 days with a deficit of 3 weeks. If no profit is seen, any exhibitor can terminate the film, and the chamber will protect them.

What is the film chamber doing to check the rising costs of production?

The chamber has taken certain measures to regulate the publicity costs. We are also encouraging the construction of more multiplexes in the state and the chamber recently submitted a memorandum seeking tax exemption for multiplexes.

What about the support from the state government?

Frankly saying, it is tepid. Unlike in other southern states, the state government has not been giving any subsidies since 1996. It provides only tax benefits upto 24 per cent for films made in AP, and upto 12 per cent for films made outside AP.

These benefits were chalked out in 1984 on the average per cent of audience at that time. But now the occupancy rate has come down, but the tax exemption rate is the same. The government should waive the tax by 50 per cent and recover the rest from entertainment channels.