Tamil producers seek revenue-sharing pay model, inspired by Allu Arjun and Ranveer Singh
Image Source: Indian Express
Tamil film producers are increasingly exploring a revenue-sharing compensation model for actors and technicians, aiming to distribute financial risk and reward more equitably across a project's stakeholders. In this arrangement, instead of fixed upfront salaries, key talent receive a percentage of the film's total box-office collections and other revenues. The move comes as the film business faces growing uncertainty, with even well-promoted movies struggling to guarantee solid returns.
Renowned producer G. Dhananjheyan recently shared details of the proposal during an interview with the Cinema Strategist YouTube channel. He explained that producers are prepared to allocate up to 60 per cent of a film's overall revenue to artists and technicians who sign revenue-sharing agreements. The remaining 40 per cent would cover production costs and provide profit to the producer.
"When we plan revenue share like this, almost 60 per cent goes into it. We worked out a strategy. When we make an important film, a producer is ready to give up to 60 per cent of the overall revenue [to those who have signed the deal]. Then we (producers) will take the production cost and profit from the remaining 40 per cent of the revenue," Dhananjheyan said.
This model differs from profit sharing, where participants receive a cut only after all costs are recovered. Under revenue sharing, talent earn a share from the first rupee earned, regardless of whether the film is profitable. Dhananjheyan illustrated this with a hypothetical example: a film with a budget of ₹150 crore that collects ₹300 crore. If a lead actor agreed to a 30 per cent revenue share, they would earn ₹90 crore, compared to ₹45 crore if paid solely based on budget rates. "Suppose a film, produced at a budget of ₹150 crore, made ₹300 crore. If the lead actor agreed to a 30 per cent share in revenue, they would end up earning ₹90 crore. Had they gone according to the budget and at the same rate, they would have earned only ₹45 crore," he noted.
The allocation of 60 per cent is a ceiling; actual shares would vary based on negotiations and the film's expected scale. Proponents argue that revenue sharing aligns incentives, encouraging actors and technicians to actively promote the film's commercial success while also shielding producers from catastrophic losses if a project underperforms.
The model has already been adopted by some prominent stars. Dhananjheyan pointed out that Allu Arjun has been working under such revenue-sharing arrangements for several years, and Ranveer Singh similarly structured his compensation for the upcoming film *Dhurandhar: The Revenge* (2026), directed by Aditya Dhar. "Allu Arjun has been doing this smartly for the past few years. He takes a share of the revenue for all his films. What if the film becomes exponentially successful and earns ₹1,500-2,000 crore? They will earn just as much. Ranveer Singh did the same for *Dhurandhar 2*," he stated.
However, a substantial portion of the industry is yet to embrace the model, with some stakeholders expressing reservations about deferred and variable pay. Tamil producers hope that wider adoption could revolutionise the economics of regional cinema, fostering a more sustainable ecosystem where success is shared and risks are mitigated.
