Telugu producers have split into two groups over a major shift in the film exhibition sector. Last week, 23 theatres across Telangana announced they are moving from the long-standing rental system to a percentage-based screening model. The move has divided the industry into opposing camps.
The Active Producers Guild has refused to accept the 60-50-40 percentage sharing model proposed by the Telangana Film Chamber. The Guild calls it a unilateral decision and has stated they will not screen movies in theaters operating under this model.
Two Telugu Producers Groups Emerge
The Dil Raju camp, including senior producer Suresh Babu, supports the percentage-based system. The opposing camp wants theaters to continue under the current rental model.
Industry sources say the Dil Raju group is aligning with exhibitors because they currently don’t have many big films in production, but control a significant number of theaters. Meanwhile, the opposing camp has several big-budget films in progress and doesn’t want to jeopardize their business.
The proposed 60-50-40 percentage system means exhibitors would take 60% of collections in week one, 50% in week two, and 40% from week three onwards. This is expected to significantly impact producer revenues and overall box office performance, especially for films with longer theatrical runs.
The Telangana High Court has previously intervened in exhibition and ticket pricing matters, adding another layer of complexity to this dispute.
Producers Opposing Percentage-Based Screening Model
Here’s the complete list of producers who have aligned against the new system:
- Ravi Shankar Yalamanchili (Mythri)
- Sudhakar Cherukuri (SLV Cinemas)
- TG Vishwa Prasad (People Media Factory)
- Naga Vamsi S (Sithara Entertainments)
- Bunny Vas P.V. (GA2)
- Supriya Y (Annapurna Studios)
- Bapineedu B (SVCC)
- Sudheer Edara (Sri Venkateswara Creations)
- Sharat Marar (North Star)
- Suryadevara (Shine Screens)
- Prasad V Potluri (PVP Cinema)
- Abhishek Nama (Abhishek Pictures)
- Anil Sunkara (14 Reels Plus)
- Chadalavada Srinivas (Sri Tirumala Tirupati Venkateswara Films)
- Chiranjeevi (Konidela Production Company)
- Chitturi Srinivas Raa (Sri Lakshmi Narasimha Silver Screen)
- SKN (Mass Movie Makers)
- Dheeraj Mogilineni (Dheeraj Mogilineni Entertainment)
It remains to be seen which of the two Telugu producers groups will prevail in this fight between the rental system and the percentage-based screening model.