In Bollywood, one blockbuster can make you a star. But it doesn’t guarantee you’ll never have to worry about money again.
Actor R Madhavan has spoken out about this harsh reality of Hindi cinema — the complete absence of a residual payment system. In an old interview that has gone viral again, the Rocketry actor said that if Bollywood followed Hollywood’s royalty model, the money from just a handful of his hit films would have been enough to secure his family for life.
“Three Films Could Feed Generations” Madhavan named three of his biggest films as examples — 3 Idiots, Rang De Basanti, and Tanu Weds Manu.
“If I was working in Hollywood and had delivered these many hits, I wouldn’t hesitate for a second before signing a risky, content-driven film. Because I would know that with just two or three blockbusters, my future generations are taken care of,” he told India TV Showbiz’s YouTube channel.
In Hollywood, actors, writers and directors continue to receive royalty cheques every time a film is re-aired on TV, sold on DVD, or streamed on platforms. In India, the payment ends the moment the film releases.
The conversation began when Madhavan was asked by trade analyst Akshaye Rathi whether Shah Rukh Khan’s decision to turn producer early in his career was a smart financial move. Madhavan said there’s no single answer for everyone. “One cannot take a one-size-fits-all approach,” he said. “If you’re commanding double-digit salaries, the rules are different. You’ve already secured your future.”
He explained that superstars at the top can afford to invest, produce, and experiment. But for most actors in the middle and lower tiers, the situation is very different.
“There Is No Pension In This Industry”
The core problem, according to Madhavan, is financial uncertainty.
“Most actors get used to a certain lifestyle. But people forget that you can’t spend more than you earn. There’s no pension here,” he said. “So you end up thinking — ‘paise toh lelo, pata nahi kal milega ke nahi milega’. You take the money because you don’t know if another offer is coming.”
That fear, he said, is why many actors keep saying yes to big commercial films, even when they want to do something different and creative.
Delayed Payments And The Amrish Puri Example
Madhavan also highlighted another issue — delayed and incomplete payments. He said it’s a common practice, but actors rarely fight it in court because legal battles are expensive and time-consuming. “The judiciary has to support the contracts that we sign,” he added.
To explain how powerful a residual system can be, he gave the example of veteran actor Amrish Puri. “There’s a story that Mr Amrish Puri was still receiving residuals for the Steven Spielberg film he did. Imagine that kind of security,” Madhavan said.
“If residuals were introduced in India tomorrow, every actor would want it. Then we could finally choose films based on passion, not just paychecks,” he concluded.
His remarks once again bring focus to a long-standing demand in the industry — a fair revenue-sharing model that gives artists a stake in the long-term success of their work.
