Highlights
- Tamil producers are backing a wider shift towards revenue-sharing agreements.
- Producer G Dhananjheyan says up to 60 per cent of a film's revenue could be distributed among actors and technicians.
- The model aims to reduce upfront financial pressure on producers.
- Allu Arjun and Ranveer Singh have been cited as examples of stars embracing the approach.
As film budgets continue to climb and box-office outcomes become harder to predict, Tamil producers are advocating a significant change in how actors and technicians are paid. Instead of relying on large upfront fees, they are encouraging a revenue-sharing model that links earnings directly to a film's performance.
The approach, widely used in Hollywood, is increasingly being viewed as a way to balance risk and reward across the industry. Supporters argue it could help producers manage costs while giving stars and crew members the opportunity to benefit more substantially when a film becomes a major success.
Producers propose sharing revenue rather than fixed salaries
Producer G Dhananjheyan recently outlined how the system could work within Tamil cinema. Speaking on the Cinema Strategist YouTube channel, he said producers are prepared to allocate up to 60 per cent of a film's overall revenue to actors and technicians who sign up to the model.
Under the proposed arrangement, producers would use the remaining 40 per cent to recover production costs and generate profits. The aim is to create a structure in which everyone involved in a project shares both the risks and the rewards.
According to Dhananjheyan, the model could offer greater stability for producers at a time when even high-profile films are not guaranteed box-office success.
Why revenue sharing is different from profit sharing
Dhananjheyan also highlighted the distinction between revenue-sharing and profit-sharing agreements.
Under a profit-sharing arrangement, payments are linked to profits generated after costs have been recovered. Revenue-sharing, however, is calculated from the money a film earns, allowing participants to benefit directly from strong box-office performance.
He explained that if a film made on a budget of around £12.8 million went on to earn £25.6 million, an actor with a revenue-sharing agreement could potentially earn far more than they would through a traditional salary structure.
The model therefore offers talent the chance to increase their earnings when a film significantly exceeds expectations.
Allu Arjun and Ranveer Singh cited as examples
Dhananjheyan pointed to Allu Arjun as one of the leading advocates of the approach, claiming the actor has been opting for revenue-sharing arrangements on his films for several years.
He also said Ranveer Singh adopted a similar strategy for Dhurandhar: The Revenge (2026), directed by Aditya Dhar.
According to the producer, the system becomes particularly attractive when films achieve exceptional box-office success. Rather than being limited to a fixed fee agreed before release, stars can participate in the financial upside generated by strong audience demand.
As conversations around remuneration continue across the industry, Tamil producers see revenue sharing as a potential solution to the growing financial pressures facing Indian cinema. Whether more leading actors embrace the model could shape how major films are financed in the years ahead.
