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Pullaiah and starring Parupalli Subbarao and Sriranjani, the film attracted unprecedented numbers of viewers to theatres and thrust the young industry into mainstream culture. In 1934, the industry saw its first major commercial success with Lavakusa. Popularly known as talkies, films with sound quickly grew in number and popularity. Bhakta Prahlada was completed on 15 September 1931, which henceforth became known as "Telugu Film Day" to commemorate its completion.
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Reddy, who directed the first bilingual ( Telugu and Tamil) talkie Kalidas (1931). The first Telugu film with audible dialogue, Bhakta Prahlada, was produced by H.M. He introduced digital theater sound with the 1935 film Jagadamba. In 1935, Andhra Cine Tone was built in Visakhapatnam by Gottumukkala Jagannadha Raju. The first film studio in South India, Durga Cinetone, was built in 1936 by Nidamarthi Surayya in Rajahmundry, Andhra Pradesh. Prakash have established a long-lasting precedence of focusing exclusively on religious themes Nandanar, Gajendra Moksham, and Matsyavatar, three of their most noted productions, centred on religious figures, parables, and morals. The Telugu film industry originated with silent films in 1921, with the production and release of Bhishma Pratigna in 1921 The film was directed by Raghupathi Venkaiah Naidu and his son R. Promotional poster of Bhakta Prahlada the first full-length Telugu talkie produced and directed by H. Rajamouli's epic film Baahubali 2: The Conclusion, and alternate history film RRR are the only Indian films to receive the Best International Film at the 44th American Saturn Awards, and Second Best Picture at the 5th Hollywood Critics Association Awards respectively. Rajnesh Domalpalli's Vanaja was nominated for the Best First Feature and Best Cinematography awards at the " 23rd American Independent Spirit Awards". Viswanath's Swati Mutyam was India's official entry to the 59th Academy Awards. Sastry's Thilaadanam received "New Currents Award" at the 7th Busan International Film Festival. Narsing Rao's ethnographic film Maa Ooru won the 1992 Hungarian Visual Arts "Main Prize - Media Wave Award". Pathala Bhairavi (1951), Malliswari (1951), Devadasu (1953), Mayabazar (1957), Nartanasala (1963), Maro Charitra (1978), Maa Bhoomi (1979), Sankarabharanam (1980), Sagara Sangamam (1983), and Siva (1989), have been showcased among CNN-IBN's 100 Greatest Indian Films of All Time. Pathala Bhairavi (1951) was the only South Indian film screened at the first India International Film Festival. It received an honorary diploma at the 2nd Venice International Film Festival. The film was shot with a budget of estimated ₹10 lakh (₹1 million) in Calcutta. The film was directed by father of the " Telugu theatre Movement" Chittajallu Pullaiah starring Vemuri Gaggaiah and Dasari Ramathilakam as "Yama" and "Savithri" respectively. In 1933, East India Film Company has produced its first Indian film, Savitri in Telugu. He is cited as the father of Telugu cinema. In 1921, he produced the silent film, Bhishma Pratigna.
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Since 1909, filmmaker Raghupathi Venkaiah was involved in producing short films and travelling to different regions in Asia to promote film work. By 2021, it has emerged as the largest film industry in India in terms of box-office.
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The nickname Tollywood is a portmanteau of the words Telugu and Hollywood. Telugu cinema is based in Film Nagar, a neighbourhood of Hyderabad, India. Telugu cinema, also known as Tollywood, is the segment of Indian cinema dedicated to the production of motion pictures in the Telugu language, widely spoken in the states of Andhra Pradesh and Telangana.