Andhra Pradesh and Telangana exhibitors have escalated their demand for a percentage-based revenue sharing system, warning that theatres across both Telugu states may shut down from May 29 if their concerns are not addressed.
Theatre owners and exhibitors are pushing to replace the long-standing rental model currently followed for big releases with a universal percentage-sharing system. The issue has become a major flashpoint in Tollywood exhibition circles, with a crucial meeting between exhibitors, distributors, and industry stakeholders scheduled this week to arrive at a possible solution.
Andhra Pradesh Exhibitors Demand Revenue Model Overhaul
Exhibitors and theatre owners in Andhra Pradesh are strongly pushing for a percentage-sharing model instead of the existing rental system. They argue that the current model heavily favors producers and distributors, while single-screen theatres continue to struggle with rising operational costs and declining theatrical run periods.
The Andhra Pradesh and Telangana exhibitors believe that a universal percentage-sharing system would create a fair balance between producers, distributors, and theatre owners, especially during the release of big-budget films.
Telangana Exhibitors Release Open Letter to Star Heroes
Meanwhile, the Telangana Exhibitors Association has officially released an open letter appealing to Telugu star heroes and film producers to support the transition to a percentage-sharing system.
In the letter, the association highlighted the severe financial challenges faced by single-screen theatres and stated that the current “rent-or-percentage” system is no longer sustainable. The association explained that producers already follow percentage sharing for nearly 40 weeks every year, but major films continue to use the rental model during peak seasons.
Earlier in April, 23 Telangana theatres shifted to a percentage-based screening model, implementing a week-wise revenue split to ensure single-screen survival.
Exhibitors are now requesting that the same percentage-sharing system be implemented uniformly throughout the year across both Telugu states.
Theatrical Run Times Shrinking Drastically
The open letter also pointed out how theatrical run-times for films have drastically reduced in recent years, making fixed rental agreements unsustainable for single screens.
The Andhra Pradesh and Telangana exhibitors cited examples like F2, which reportedly enjoyed an eight-week run in theatres, while recent releases such as Dhurandhar completed their theatrical business within just two or three weeks.
According to exhibitors, audiences now watch films across multiple screens in shorter periods, making it increasingly difficult for single-screen theatres to survive under fixed rental agreements.
Single Screens Demand Equal Treatment with Multiplexes
Another major point raised by exhibitors is the alleged disparity between multiplexes and single-screen theatres.
The association claims multiplexes already benefit from percentage-sharing systems, while many single screens in Telugu states are excluded despite delivering strong collections for major releases. They also noted that theatres in other states reportedly received percentage-sharing benefits for films like Pushpa.
Exhibitors believe the proposed system would create a win-win situation for producers and theatre owners by sharing both risks and rewards more fairly.
However, not everyone in the industry supports the sudden shift. Producer Y. Ravi Shankar of Mythri Movie Makers recently opposed the abrupt implementation of the percentage system in Telangana, calling for proper discussions between all stakeholders.
Industry Meeting Crucial to Avert Shutdown
With tensions rising and shutdown warnings already issued, all eyes are now on the upcoming industry meeting scheduled this week. If an agreement is not reached soon, theatre closures across Andhra Pradesh and Telangana could significantly impact upcoming Telugu movie releases.
The coming days are expected to be crucial for the future of the theatrical business in the Telugu states, especially for single-screen cinemas as the Andhra Pradesh and Telangana exhibitors continue to fight for survival in the changing entertainment landscape.