In a major shift for the Telugu film exhibition sector, 23 single-screen theatres across Telangana have decided to move away from the rental system and adopt a percentage-based screening model starting April 3, 2026.
The decision was officially communicated through a circular issued by the Telangana State Film Chamber of Commerce. According to the notice, several exhibitors expressed serious concerns over rising operational costs, especially for theatres located in prime areas with better facilities and audience comfort.
Why Telangana Theatres Are Shifting to Percentage-Based Model
The exhibitors stated that the rental system has become increasingly difficult to sustain due to high maintenance expenses, staff costs, and overall theatre operations. To ensure the survival of these cinemas, they have opted for a revenue-sharing model based on box office performance.
This move comes as single-screen theatres face mounting challenges across India, with many struggling to compete against multiplexes.
New Revenue-Sharing Terms
Under the new percentage-based system, the terms will be:
| Week | Theatre Share |
|---|---|
| Week 1 | 60% |
| Week 2 | 50% |
| Week 3 | 40% |
In addition, one show’s house-full gross will continue as a holdover.
This new structure is being seen as a major relief for single-screen theatres, many of which have been struggling to survive in recent years. The chamber noted that this step has been taken specifically to avoid permanent closure and maintain consistency in operations.
23 Telangana Theatres Adopting the New Model
The list includes prominent single screens across Hyderabad and surrounding areas:
- Hitech Theatre – Madhapur
- Sridevi Theatre – Chilkalguda
- Arjun Theatre – Kukatpally
- Mallikarjuna Theatre – Kukatpally
- Sairanga Theatre – Miyapur
- Rajyalaxmi Theatre – Uppal
- Vimal Theatre – Balanagar
- Shiva Shakthi Theatre – Kapra
…and 15 other theatres across the region.
Industry-Wide Trend Across Telugu States
What makes this development even more significant is that exhibitors across the region are backing the same demand. Reports suggest that exhibitors in Andhra Pradesh are also pushing for a shift to the percentage system instead of the rental model, indicating that this could soon become a wider industry trend across the Telugu states.
The move is expected to have a direct impact on film distribution economics and could potentially change how single-screen theatres operate in the coming months. This decision marks a crucial turning point for exhibitors, with the primary focus being survival and long-term sustainability of single-screen cinemas.