Mumbai: Film producers are facing a mounting dilemma-rising costs of entourages accompanying stars. Such expenses have spiralled to about 10-12% of the total production cost of high mid-budget and big-budget films from the mid-single digits about a year and a half ago.

The drastic increase in budgets comes at a time when the industry is reeling from a volatile box office and few hits, with producers stating that the demands are becoming increasingly unreasonable.

Notably, the additional expense borne by producers often exceeds remuneration of key contributors such as cinematographers, writers, and even directors in some cases, according to producers and analysts.

"Historically, entourage costs were in the low single digits as a percentage of overall budgets," said Suniel Wadhwa, co-founder & director, Karmic Films. "In recent years, these costs have become double-digit figures in select projects. Today, a film requires an additional box office collection of Rs. 2-2.5 crore to recover a cost of Rs. 1 crore attached to it. This shows how high entourage costs impact its earnings."

Conservative estimates shared by executive producers and veteran producers with ET showed the percentage share of entourage costs in the total cost of producing a high mid-budget film — Rs. 80-100 crore, 70-day shoot — has surged to nearly to 10% in the past one and a half years. In the case of big-budget films — Rs. 100-200 crore, 120-day shoot — the share has jumped to 12% over the same period.

Producers attribute two key factors to this trend. “In the past one and a half years, heads of each overhead expense of some well-known talent have increased their fees,” said veteran producer Rajesh R Nair. “They have also employed more people in each overhead, thereby increasing entourage costs.”

Producers say there are at least a dozen overheads that make up entourage costs. Recently, content team comprising photographers and videographers for actors’ personal social media accounts have become part of entourage costs.

“Producers are catering to outrageous demands of actors,” said a veteran producer, requesting anonymity. “Actors want a meditation coach, life coach, and a companion (wife or a family member) on sets.”

“There is a finite universe of well-known actors and stars who can bring in audiences in theatres. So, producers give in. Also, betting on new faces is expensive given the high costs involved in making and marketing films,” the person said.

The rise of streaming platforms has also changed the dynamics of entourage costs, producers said.

“Before 2015, stars had a make-up artist, hair stylist and vanity van,” said distributor Shaaminder Malik. “Then streamers paid irrational prices for pre-release digital rights. These cash flows spoiled stars and mid-level actors. Producers gave in as digital rights revenues were assured cash flows.”

“But in the past two years, streamers have cut their budgets to focus on profitability. So, producers bear entourage costs today,” he added.

Another producer said actors’ demands have “become so specific and their attitude so stubborn that they are indulging in almost wild caprices.”

For instance, recently, a character actor who had worked for a few days brought a staff of seven people with him who also wanted to stay in the same hotel as the actor, said the producer, requesting anonymity.