Demonetisation hits hard Telugu film industry; Filmmakers lament financial loss

The demonetisation of high value currency notes has hit the Telugu film industry hard with theatres wearing deserted look and some filmmakers postponing the release of new films.

The impact is such that the turnout of audience in cinema theatres here and in other parts of Telangana and Andhra Pradesh has fallen drastically.

"There are no collections (at the box office). Money is not in circulation. Telugu cinema industry is also hit hard like some other sectors, because middle classes are the main consumers of cinema," Tammareddi Bharadwaja, a prominent filmmaker and a leading industry voice, told PTI here today.

The makers of some small-budget films have postponed their release in view of the prevailing situation and notable among them is comedy hero 'Allari' Naresh-starrer "Intlo Deyyam - Nakem Bhayam", he said.

It may take a month for things to settle down vis-a-vis Telugu film industry, he said.

He also said it is unlikely that the actors would seek lesser pay owing to the government's demonetisation move.

Top stars may not reduce their remuneration as is being predicted by some, he said.

"Nobody will reduce. They may not do films for some days," he said.

Replying to a query, he said the presence of black money in the Telugu film industry is understood to be less. Those making films to bring their black money into circulation do not make it with the motive of revenue, he said.

The films made by such people may not even see the light of the day as they make films only to bring their money into circulation, Bharadwaja said.

If the system of taxation changes, people may not seek to evade taxes, he added.