Telugu film industry in wait-and-watch mode as Trump announces 100 per cent tax on films shot overseas
Confusion shrouds not just in the US where President Donald Trump announced that 100 per cent tariff will be imposed on films made overseas to ‘make Hollywood great again.’ Back in India, the biggest regional film industry in Hyderabad is also trying to assess the impact of the new policy on their business. On an average, around 300 Telugu films are released every year in AP, Telangana and southern states. However, the biggest market for Telugu films outside the Telugu states is the United States. The Telugu speaking population in the US is around 1.2 million and the number of growing rapidly. In every rural and urban Telugu families, it is a norm to have at least one person working or studying in the US. For thousands of students graduating out of engineering colleges every year in the south Indian states, the default option of higher studies is the universities spread across the US. Many of the them stay back and take up and settle in the western country which is still seen as a status symbol back home.
Keeping in mind the large number of audience in the US, the Telugu film industry for the last two decades has been steadily factoring in the US market during the pre-production stage itself. There are numerous individuals and companies which vie for the distribution rights of the Telugu films in the US. For the Telugu film industry US market is also part of the marketing gimmick as die-hard fans of top Telugu actors give the much needed headstart by showcasing their frenzy at the theatre. US also has a large number of unofficial fan clubs for actors like Pawan Kalyan, Balakrishna, Chiranjeevi, Allu Arjun, Ram Charan, Prabhas and NTR Jr. Of late, there has been a new trend where old Telugu films are being re-released in the US. On May 9, Chiranjeevi’s 1990 classic ‘Jagadeka Veerudu Athiloka Sundari’ is being released in more than 60 US screen in 2D and 3D. NTR Jr’s ‘Simhadri’, Balakrishna ‘Chennakeshava Reddy’ reported collected more than $50,000 during re release spree in 2024. Among all time top grossers, there are movies like RRR, Baahubali and Pushpa along with more than 40 other Telugu movies which have entered the coveted 2 million dollar club through Telugu and dubbed versions.
Nowadays acquiring overseas rights for Telugu films with top stars has turned prestigious and also costly as it is in high demand. The Telugu film industry is still waiting for a clarity on whether Trump’s new tariff will also apply to Indian production houses releasing their movies in US or will it be exclusively limited to US banners shooting their movies outside the country. Purchasing Telugu movie tickets is an expensive affair in the US as each ticket of a big-budget movie costs around $15-20 and upwards. If the new tariff is applicable to Telugu movies, then ticket prices could skyrocket to $30-40. This could lead to lower purchasing and turnout and affect the distributors as well as the overall revenue of the movie.
Entertainment