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Jun 18, 20261
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Tamil Producers Advocate Revenue-Sharing Model Following Allu Arjun and Ranveer Singh's Lead

Tamil cinema producers are promoting a 60% revenue-sharing model inspired by Allu Arjun and Ranveer Singh's compensation approach, aiming to distribute box office risk among all stakeholders. Unlike profit-sharing, this model provides artists with a percentage of total earnings rather than fixed amounts, offering greater upside potential when films exceed expectations. Though some industry players remain hesitant, the shift reflects growing box office uncertainty.


Quick Facts
Who
G Dhananjheyan (producer)
What
Proposal of 60% revenue-sharing model in Tamil cinema
When
2026-06-18 (article publication date)
Where
Tamil cinema industry
- Proposal of 60% revenue-sharing model in Tamil cinema
- Distribution of film earnings to artists and technicians
- Shift from profit-sharing to revenue-sharing compensation
- Adoption of revenue-sharing by major actors
- G Dhananjheyan (producer)
Tamil cinema producers are increasingly advocating for a revenue-sharing model as a means to mitigate financial risks in an uncertain box office environment. Under this proposed approach, up to 60% of a film's total earnings would be distributed among actors and technicians, while producers retain the remaining 40% to cover production costs and profits. Producer G Dhananjheyan has emerged as a key advocate for this shift, arguing that the model represents a fresh revolution in Indian cinema by ensuring all stakeholders share both the burden of failure and the rewards of success.
The revenue-sharing model differs fundamentally from traditional profit-sharing arrangements. Under revenue-sharing, artists and technicians earn a percentage of the total box office haul rather than a fixed salary or a share of profits only. This distinction proves significant when films substantially exceed expectations. For example, if a film budgeted at Rs 150 crore earns Rs 300 crore and an actor has negotiated a 30% revenue share, they would earn Rs 90 crore, compared to Rs 45 crore under a traditional budget-based fixed salary arrangement. The advantage becomes even more pronounced for blockbuster successes, where high-grossing films could generate substantially larger earnings for participants.
Allu Arjun and Ranveer Singh have become the model's prominent practitioners. Allu Arjun has employed revenue-sharing for several years across his films, positioning himself to benefit maximally from blockbuster potential. Ranveer Singh similarly adopted this approach for Dhurandhar: The Revenge (2026), directed by Aditya Dhar. Industry observers note that such an arrangement incentivizes all parties to promote and ensure a film's success, aligning interests across the production ecosystem.
While the model has gained traction among some A-list artists and technicians, adoption remains incomplete across the Tamil film industry. A substantial portion of the industry continues to harbour concerns and reservations about the shift from traditional compensation structures. Dhananjheyan acknowledged this hesitation while emphasizing that as box office uncertainty continues to grow and only well-promoted quality films guarantee solid returns, producers believe revenue-sharing represents a pragmatic path forward for reducing losses on underperforming projects.
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Why This Matters
This revenue-sharing model addresses a critical pain point in film financing: the misalignment of incentives when fixed compensation divorces artists from project outcomes. By tying earnings directly to box office performance, producers can better manage cash flow risk in an uncertain market, while A-list talent gains substantial upside on hits—creating a sustainable model as theatrical returns become more volatile. For investors and audiences, this shift could improve film quality and marketing discipline, as all stakeholders now benefit from commercial success rather than merely fulfilling contractual obligations.
Timeline & Sources
Jan 1, 2026
WireRanveer Singh adopts revenue-sharing model for Dhurandhar: The Revenge
Jun 18, 2026
WireG Dhananjheyan reveals Tamil producers considering 60% revenue-sharing model during Cinema Strategist interview