Film producers and content makers across long- and short-format programming are bracing for a 20% to 25% budget increase as the geopolitical crisis arising from the West Asia war persists. With fuel and travel costs rising, everyday shooting expenses are expected to increase, posing a threat to projects, especially small and mid-budget titles.
This pressure follows a decline in box-office revenue from the usually profitable Middle East market. While top stars have not yet faced budget cuts, producers are already re-evaluating all other production and logistical expenses to manage costs.
In a recent open letter, actor Kamal Haasan called for practical and sustainable operating practices for efficient filmmaking, such as better shooting discipline, tighter schedules, reduced luxury and entourage expenses, limiting avoidable foreign travel where suitable local alternatives exist, conserving energy across sets and studios, and encouraging sustainable set construction and reuse of materials.
Ripple effects
Moreover, rising costs and uncertainty may lead to higher insurance premiums and contingency planning expenses, he said. The All Indian Cine Workers Association (AICWA) has urged the government to provide support and protection to the film industry, citing concerns over rising costs and economic instability, Agrawal added.
Raj Mishra, managing director and CEO, Chtrbox, and group CEO - APAC and MEA, QYOU Media Inc, said the West Asia crisis is creating a ripple effect that the content industry cannot ignore.
“The most immediate pressure points are logistics and travel. Shooting schedules that involve international locations or cross-border crew movement are becoming significantly more expensive to execute. For branded content specifically, where speed-to-market and tight budgets are already the norm, even a 10-15% cost escalation can force a rethink of the entire production blueprint,” Mishra said.
The industry is also seeing raw material and vendor costs inch up, which affects post-production and tech infrastructure more than people realise, he added.
Some believe producers may explore more efficient ways of working in the short to medium term. This could include tighter shoot schedules, localised locations, smaller crews where possible, better pre-production planning, limited non-essential travel and more digital-led promotions.
That said, the crisis has also brought new opportunities. Film producer and distributor Yusuf Shaikh said many countries are offering subsidies for film shoots to lure studios in these tough times. For instance, Saudi Arabia has raised its rebate for film and TV production from 40% to 60% while Poland is offering incentives too.
Smaller the budget, bigger the impact
However, smaller players are expected to be hit hardest. “For regional content producers, cost discipline is already very important. Unlike very large-scale productions, regional studios and independent creators often work with sharper budgets, so even small increases in travel, location management or crew expenses can affect planning. It may not always stop a project, but it can certainly make producers more cautious about how schedules are designed,” said Kaushik Das, founder and CEO, AAO NXT, an Odia-language platform.
To be sure, many mega-budget titles are going on as planned for now. Film producer Shariq Patel said that in the case of big star films, above-the-line costs are skewed toward things like actor fees, and overseas shoots are unlikely to be deferred at this point. “But the smaller films will definitely be impacted. Even something like flight cancellations could throw the math off,” Patel added.
As geopolitical disruptions disrupt production economics through rising costs, the primary challenge for content companies is unpredictability. “Faster turnaround formats depend heavily on operational efficiency, so even small disruptions across travel or supply chains can impact timelines and budgets,” said Anshita Kulshrestha, founder, TukTuki Entertainments, a micro-drama mobile entertainment company.
In the hot seat
Industry experts said consumer sentiment is deeply intertwined with macroeconomic stability, and prolonged geopolitical uncertainty tends to make people more cautious with discretionary spending. Cinema and premium content subscriptions sit right in that vulnerable zone.
“The business, especially in the Middle East, is down for all languages, except Malayalam. That said, people also have to step out of home at some point and they are always influenced by social media when it comes to the movies,” said independent trade analyst Sreedhar Pillai.