In the Telugu states, the movie business operates differently in Andhra Pradesh and Telangana. In Telangana, theatre deals are mostly done on an advance basis, shifting the risk to distributors or producers. However, in Andhra Pradesh, buyers typically take on the risk through MG (Minimum Guarantee), SG (Shared Guarantee), and hire agreements, often paying record prices for big films.
In recent years, Andhra buyers have struggled to see profits, with only a few Sankranthi releases like RRR, KGF Chapter 2, Sarkaru Vaari Paata, Pushpa, and Salaar offering moderate returns. This has led to hesitation among buyers to acquire rights for big films at high prices. Notably, Kalki 2898 AD had to go for a self-release because buyers were reluctant to invest in it at inflated rates.
However, the tide has turned with the success of Devara. This film provided much-needed relief to Andhra buyers, partly due to the government’s decision to allow higher ticket prices for big films. Devara turned out to be a profitable venture, reigniting buyers’ confidence and encouraging them to take risks again.
Following Devara’s success, the business for Pushpa 2 has picked up significantly. The film’s Andhra Pradesh rights have already been sold for ₹85 crores, which is 1.5 times more than Devara. In the Ceded region, Pushpa 2 has been sold for ₹30 crores. While Pushpa wasn’t as successful in Andhra Pradesh as some other biggies like Baahubali, buyers are now betting big on the sequel.
It remains to be seen whether Pushpa 2 can replicate Devara’s success in Andhra and deliver a significant profit for the buyers.