A fresh controversy has erupted in the Telugu film industry over theatre revenue sharing. The Telangana Film Chamber and the Producers Guild are now locked in a cold war over the ‘percentage’ policy. Single screen theatres across Telangana may shut down from May 1 if the dispute remains unresolved.
Exhibitors strongly insist that a percentage-based system must replace the current rental model. Producers argue this is not feasible under present market conditions. The standoff has intensified, with serious discussions underway about shutting down single-screen theatres from the start of May.
Rental System vs Percentage Model
Most single-screen theatres currently follow the rental system. Under this model, producers pay a fixed rent to theatre owners, regardless of whether the film performs well or not. The Telangana Film Chamber is now demanding a percentage-based revenue-sharing model, similar to multiplexes.
According to the proposed system, theatre management would receive 60 percent of the first week’s collections, 50 percent in the second week, and 40 percent in the third week. The chamber has clarified that this system is already being followed in nearly 23 major theatres in Hyderabad.
Producers Guild Raises Strong Objection
The Producers Guild has strongly opposed this proposal. The guild argues that giving such a large share of collections to theatres is not possible under present market conditions. It has clearly stated that films should continue to be screened only under the existing rental system.
Producers are reportedly firm on releasing their films only in theatres that agree to the rental model. This has further widened the gap between theatre owners and producers, intensifying the conflict. The Telugu Film Chamber has recently taken several new decisions regarding financial and distribution-related issues, making this dispute even more significant.
Telugu Film Chamber Questions Guild’s Authority
Meanwhile, the Telangana Film Chamber has expressed deep displeasure over the Producers Guild’s stand. The chamber has questioned why the Guild is taking key decisions instead of the Telugu Film Chamber. Along with making strong remarks, it has also sent an official letter seeking immediate resolution.
The chamber has warned that a final decision on the matter must be taken by April 30, failing which strict action could follow.
May 1 Shutdown Threat
If there is no clarity on the percentage policy by the end of April, the Exhibitors Association has announced that single-screen theatres across Telangana may be shut down from May 1.
Exhibitors say they have been facing heavy losses under the rental system. They point out that the percentage model is already being implemented successfully in several other states. Single screen theatres in Telangana account for a significant portion of Telugu film releases, making this potential shutdown a major crisis.
With exhibitors concerned about theatre survival and both sides refusing to step back, the issue is now becoming one of the biggest controversies in the Telugu film industry.