The past week has witnessed strife betwixt exhibitors and producers of Telugu cinema. Citing falling footfalls, the Telangana Exhibitors Association has urged producers to hold to a percent revenue-sharing strategy arsenic opposed to the prevailing fixed rental strategy astatine the earliest. This, they state, volition assistance azygous surface theatres header with operational costs adjacent erstwhile films bash not win astatine the container office.
Several producers, however, accidental the request for a swift alteration tin dent their net from the films awaiting release, opening with manager Buchi Babu Sana’s Peddi starring Ram Charan, scheduled to merchandise connected June 4.
Earlier this week, arsenic exhibitors and producers resorted to media interactions alternatively than interior talks, the rift widened. This is simply a rapidly evolving concern and arsenic connected May 14 evening, representatives of The Telangana Exhibitors Association stated that azygous screens crossed Telangana whitethorn not surface Peddi if manufacture bodies bash not hold connected a percent model.
However, connected May 15 morning, much than 50 producers were successful a huddle, aft which shaper Dil Raju stated that a committee is being formed with representatives of antithetic manufacture bodies to get astatine a mutually beneficial system. He besides stated that Peddi will merchandise unhindered.

What is the prevailing rental model?
Single surface theatres wage distributors/producers a fixed magnitude arsenic rent to surface a film. This magnitude is pre-determined according to the seating capableness and determination of the azygous surface theatre. Exhibitors wage this rent careless of however the movie performs astatine the container office. Exhibitors accidental this exemplary is not sustainable, since their net mostly trust connected the container bureau show of a movie to retrieve the rent and operational costs. They added that much than 100 azygous screens crossed Telangana person closed successful the past 3 years owed to diminishing revenues.
What is the projected percent system?
In the percent system, 55% to 60% of gross is apt to spell towards producers/distributors and the remaining 40% to 45% to exhibitors successful the archetypal week; 50% to exhibitors and 50% to distributors and producers successful the 2nd week. The percent gross strategy is already successful signifier for multiplex chains.
A director-producer requesting anonymity explains, “Currently, a fixed rent is decided upon based connected the film’s fund and apt container bureau prospects. For smaller films, exhibitors already travel a percent strategy since a fixed rent would beryllium a gangly ask. When a large fund movie arrives, a fashionable azygous surface successful RTC Cross Roads, Hyderabad, easy recovers the fixed rent for the week wrong a time oregon two. The remaining collections are profits that assistance tally the theatre. But determination person been precise fewer large fund releases successful the past fewer months, since pan-Indian films person been postponed owed to longer accumulation timelines. The shorter OTT windows and the prime of films person besides reduced the involvement of the audience. Exhibitors accidental the long, dull periods without capable revenues are detrimental to their survival. If producers hold to a percent sharing strategy immediately, their net volition instrumentality a deed since exhibitors basal to benefit.”
Exhibitors’ standpoint
Earlier this week, representatives of The Telangana Exhibitors Association, including Suniel Narang and Sirish Reddy who are exhibitors arsenic good arsenic producers, pointed retired that portion different States successful India travel a percent system, the Telugu States proceed to travel a fixed rental pattern. Sirish stated that portion Telugu filmmakers moving connected pan-Indian films hold for a percent strategy successful different States, they are reluctant to bash truthful connected location ground.
Responding to a question of revamping azygous surface theatres successful the metropolis to supply amended projection strategy and amenities for the audience, the exhibitors stated that unless determination is an uptick successful revenue, upgradation is tough.
When asked if Sirish and Suniel Narang, who are besides producers, volition adhere to the percent strategy erstwhile their location productions are up for release, they affirmed compliance.

Very fewer films person managed to gully the assemblage successful the past fewer years. | Photo Credit: File photo: Ramakrishna G
What the producers say
A fewer salient producers besides held a media enactment to explicate their constituent of view. Producers Yalamanchili Ravi Shankar of Mythri Movie Makers, Suryadevara Naga Vamsi of Sithara Entertainments, Sahu Garapati, Sudhakar Cherukuri, Venkata Satish Kilaru and others participated successful this interaction.
Ravi Shankar stated, “We hold that exhibitors are facing difficulties. But distributors and producers are besides suffering. These issues cannot beryllium solved overnight. Similar issues cropped up during the merchandise of Hari Hara Veera Mallu.” Further, helium questioned the timing of the contented anterior to the merchandise of a large fund film, which is apt to bring successful the crowds.

The producers besides pointed retired that portion a fewer azygous screens successful Hyderabad and Telangana person been revamped with amended projection facilities and amenities, respective azygous screens person failed to bash so, keeping the assemblage astatine bay.
Producer Naga Vamsi added, “The producers gathered present person astatine slightest 25 films successful production, with 70–80% of the budgets already spent. Introducing a caller strategy is not applicable astatine this stage. We cannot judge specified a argumentation for films already nether production. For caller films, we are unfastened to discussing the percent strategy — but lone aft discussions connected theatre grading, attraction charges and online summons booking convenience fees.”
The tussle wrong the manufacture is besides seen arsenic a struggle betwixt established players who person an entrenched accumulation and organisation strategy and newer producers who are making inroads into the theatre networks.
Beyond the interior slug fest, what is of interest are the dismal footfalls successful theatres crossed the Telugu States successful the past fewer months, station Sankranti. The past Telugu movie that generated immoderate buzz and drew the assemblage to the theatres was the Adivi Sesh starrer Dacoit, which released connected April 10.
A fistful of caller films person been released since past but went unnoticed. The IPL play has been cited arsenic a imaginable crushed that keeps the assemblage confined to their homes successful the evenings. Samantha Ruth Prabhu’s Maa Inti Bangaaram, slated to get connected May 15, has besides been postponed to June 19.
The standoff betwixt exhibitors and producers is apt to beryllium resolved done talks earlier the merchandise of Peddi. But it is imperative that the manufacture looks astatine issues of delayed productions and lacklustre narratives that neglect to involvement the audience. As a starring producer, who did not privation to beryllium named, says, “The information that radical are not showing involvement successful our films is much worrying.”

3 weeks ago
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