Thread by @idlebrainjeevi

Is Telugu exhibitor system collapsing in the USA? 🇺🇸

In earlier days, it used to be strong. All noted Telugu distributors started as exhibitors and upgraded themselves into distribution (Blue Sky, GIF, Ficus, Cine Galaxy, Nirvana, Shloka, FlyHigh etc).

Long thread

(1/n)

Sarigama Cinemas and RadhaKrishna Ent emerged from non-USA distributors system.

Generally, producer directly sells to USA distributor who in turn sells to exhibitor by keeping some margin.

Now big film producers are selling to 3rd parties (Classics & Phars)

(2/n)

Since producers are getting money it advance it helps in funding films.

For example, #WaltairVeerayya was sold to Classics who in turn sold to Phars. phars combined few films and sold in bulk to USA distributor Shloka.

(3/n)

Since Shloka bought at high rate, they have to charge more to exhibitors. The price for exhibitors is extremely high as film changed 3 hands.

Hence you see very few exhibitors showing interest in buying big films.

Exhibitor is main pillar for distribution network

(4/n)

Producers are happy to sell to middle men because they get money in advance.

The distribution system in USA is collapsing because prices are high as distributor didn’t buy directly from producer.

Something to ponder for big production houses!

Pls think!