The first Telugu film, 'Bhatka Prahalada', was made in 1931. It was
directed by Hanumappa Muniappa Reddy. Most of the initial Telugu
talkies released had mythological stories that drew inspiration from
the vibrant Telugu drama and stage industry.
Tollywood, as the Telugu film industry is often called, moved from
Kolkata to Rajahmundry in 1936-37, but soon shifted to Madras (now
Chennai) where it remained for decades.
The industry started shifting to Hyderabad in 1955 when Sarathi
Studios was set up here. But it was only in mid 1990s that the entire
Telugu movie-making business moved to Hyderabad. Even now, about 10
percent of the music for Telugu films is made in Chennai.
Second only to Bollywood in terms of the number of films made,
Tollywood makes about 150 films every year. The industry, which
accounts for one percent of the state's GDP, registered a turnover of
Rs.3.0 billion last year.

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