Should the film industry play safe by making small budget films?

The financial loss incurred if a small movie fails is minimal. We have seen how films like Kanchana 3, Kumbalangi Nights and Evaru, made on modest budgets, went on to become blockbusters and reaped huge profits. But, from a business point of view, the film industry needs commercially successful films to grow and flourish. In a sense, big-budget films are required to put the industry on the global map. A wider spectrum of audience or business can be achieved only if big-budget films are made. But what if they fail? The entire industry suffers. By making small films, the industry/makers can always play safe. But as the adage goes, fear of failure and hesitance to risk-taking are impediments to success. 

Soubin Shahir Raghava Lawrence Regina Cassandra