Some of the biggest disasters in the past one year brought Distributors under one platform. Dil Raju came forward to strengthen the Distributors Council after receiving few setback this year. Even Producers-cum-Distributors D Suresh Babu, Allu Aravind, Sai Korrapati and Sudhakar Reddy has decided to implement the rules strictly.
All the leading Distributors have been invited for the recent meeting. Few committees have been formed to implement the new rules. Measures have been taken to stop the film releases if necessary.
Until now, Producer has to compensate to the Buyers if the loss is above 20 percent. If the loss is 30 percent, Producer should pay back 10 percent of it. Now, This rule has been modified. Buyers should bear 25 percent of the losses. If the loss exceeds 25 percent, Producer should compensate it. Both Hero and Director must return 30 percent of their remunerations in such cases.
At times, Even Producer will end up facing losses. In such cases, The Committee will decide who should bear the loss.
A 3-member committee is being formed to ascertain the budget invested on a particular movie. This panel will decide whether or not the claims of the makers about the high budget are true or not.
Another committee was set up to find out the actual collections at the theaters and profit/loss.
This model might prompt the Heroes and Directors to opt for profit-sharing model to keep everything under control. Tollywood would benefit if it heads in this direction.