Recently, actor Karthi publicly stated that he is hesitant about entering film production and that this fear is partly due to advice he received from Superstar Rajinikanth. The Coolie star had previously advised him and others not to enter the production business. Rajinikanth himself has, in the past, offered compensation to distributors for film losses, which has been a well-known aspect of his career.
Karthi's brother, Suriya, on the other hand, is a successful producer with his banner, 2D Entertainment. However, Karthi has maintained his focus on acting.
While actors not doing production is their prerogative, it also reflects the harsh truth that most of them are unwilling to bet on their own stamina and box office pull. Rajinikanth and Karthi are well within their rights not to gamble away their money on their movies, but in such a scenario, ideally, they should be willing to mitigate the risks for their producers. This can be achieved by adopting a revenue-sharing model, instead of taking home upfront remuneration and putting the investments of producers at risk.
Most of Rajinikanth's movies (Telugu-dubbed ones) have failed to recover money in the last ten years.