Film exhibitors from the Telugu states have decided to shut down theatres from June 1, citing their inability to continue screening films on a fixed-rent basis. The exhibitors have made it clear that films will only be screened if revenue is shared in percentage terms. The decision was taken during a crucial meeting held at the Telugu Film Chamber on Sunday, which saw the participation of noted producers like Dil Raju and Suresh Babu, along with around 60 exhibitors.
The longstanding disagreement between exhibitors and distributors over revenue-sharing terms has been a source of tension in the industry. While exhibitors argue that renting films on a fixed amount has become financially unviable, distributors have remained firm on refusing a percentage-based model. This deadlock has put producers in a difficult position, prompting the exhibitors to convene and discuss alternative approaches and government policies impacting the sector. As a result, they have resolved to formally communicate their decision to producers through a letter.
Earlier, Telangana exhibitors had proposed a revenue-sharing structure divided according to the value of the film’s rights in the Nizam region. For films with Nizam rights valued above ₹30 crore, the share in the first week would go 75 percent to the distributor and 25 percent to the exhibitor, gradually shifting in subsequent weeks to favor the exhibitor. By the fourth week, the split would become 30 percent for the distributor and 70 percent for the exhibitor. Similarly, for films with Nizam rights between ₹10 crore and ₹30 crore, the initial share would be 60:40 in favor of the distributor, evening out to 50:50 in the second week, and tilting further towards the exhibitor in later weeks. Films with Nizam rights below ₹10 crore would follow a 50:50 model in the first week, increasing the exhibitor’s share in subsequent weeks.
In addition, exhibitors had earlier agreed to a negotiated margin of two percent for big and medium-budget films, with a first-week share of 73 percent for the distributor and 27 percent for the exhibitor. However, with no consensus reached, the exhibitors have now opted for a complete halt in operations starting June 1, putting pressure on industry stakeholders to arrive at a workable solution before the busy summer release season.