A crucial meeting between Telugu producers and exhibitors held today at the Film Chamber ended without a mutual agreement, as the ongoing dispute over the percentage vs rental system continues to remain unresolved. Several more discussions are expected before a final resolution is reached.
What Telugu Producers and Exhibitors Are Demanding
The discussions reportedly failed to end in a mutual agreement, with both sides holding firm on their respective positions.
Exhibitors are pushing for a percentage system for all films including Peddi. While they are open to a lower percentage, they remain firm on ending the rental model entirely and demand a written commitment from producers before releases.
Producers, on the other hand, are proposing a rental model with an additional 7.5% revenue share as a compromise.
Exhibitors Push for Complete Transition
According to industry sources, exhibitors are insisting that even for Peddi (major films), the revenue-sharing percentage system must be implemented instead of the regular rental model. While they are open to accepting a slightly lower percentage, exhibitors remain firm on moving away from the rental system entirely.
The shift to percentage-based screening in Telangana earlier this year has intensified discussions around sustainable revenue models for single-screen theatres. Exhibitors have demanded that Telugu producers provide a written commitment before film releases, specifying the percentage terms that will be followed.
Producers Offer Hybrid Model
On the other hand, producers are reportedly willing to offer a rental model along with an additional 7.5% revenue share as a compromise. However, this proposal has not been accepted by exhibitors, who are pushing for a complete transition to the percentage system.
The division among producer groups over the screening model has further complicated negotiations between Telugu producers and exhibitors.
Final Decision Tomorrow
Telugu producers have stated that they will announce their final decision tomorrow. Industry circles believe that the long-standing issue between producers and exhibitors could finally conclude by tomorrow, bringing an end to weeks of uncertainty in the Telugu film exhibition sector.