Siddharth Roy Kapur, the producer of acclaimed films like "Barfi," "Haider," and "Dangal," recently shared his insights on the financial workings of the Hindi film industry. In a conversation with CNBC-TV18, Kapur revealed that top-tier actors in Bollywood often command a significant portion of a film's budget, sometimes as much as 30 to 40 percent. He noted that this practice is similar to Hollywood, where stars like Tom Cruise can receive a considerable part of a film's budget like in the case of "Top Gun: Maverick" because their presence ensures a strong box office opening.

Kapur explained that in Indian cinema, the financial structure of a film is heavily influenced by the presence of major stars such as Salman Khan, Aamir Khan, Shah Rukh Khan, and Hrithik Roshan. These actors bring substantial box office pull, which justifies their high fees.

However, Kapur also pointed out a shift in how actors are compensated. Instead of solely relying on large upfront fees, many are now opting for a smaller initial payment in exchange for a percentage of the film's profits. This approach allows actors to benefit directly from the film's success while also helping producers manage their budgets more effectively. Kapur clarified that this wasn't exactly a pay cut, but rather a shift in the payment structure. This move towards revenue sharing is becoming increasingly common in the industry.

Kapur explained that the current trend involves a two-part compensation model: a fixed fee included in the production costs and a share in the profits. By reducing the upfront fee, the overall budget becomes more manageable, and if the film performs well, everyone benefits. He highlighted that profit sharing is emerging as a win-win scenario as it eases production costs and ensures greater financial rewards for both actors and producers when a film succeeds.

When questioned about pay parity between male and female stars, Kapur acknowledged that while pay for female stars has improved, there is still room for greater parity with their male counterparts. He stated that the disparity is still quite significant, but also believes that the pay is commensurate with the commercial potential of the projects. He added that his production house continuously works towards achieving greater pay equity.

Kapur also touched upon the evolving role of producers and the importance of making informed decisions regarding budgets, scripts, and casting. He stressed the need for producers to be closely involved in the casting process and to be passionate about the material they are working on. Kapur highlighted the casting of "Dangal" as a particularly important decision, as it involved casting an actor who was willing to play an overweight wrestler.

In a separate discussion, Kapur addressed the use of artificial intelligence (AI) in filmmaking. He said that the industry should embrace AI and adapt to it to make better movies at lower costs. He also spoke about the high costs associated with entourages and suggested a fixed fee for actors to manage their support staff.