The battle for the Telugu box office intensified on Tuesday as exhibitors gathered in Kondapur to demand a new revenue-sharing model. This move follows a South Indian Film Producers Council meeting, highlighting a growing divide between producers and theatre owners. Exhibitors are now pushing for a percentage-based split, calling it a vital lifeline for the region's single-screen cinemas.
What is the Issue?
At the centre of the conflict is the battle between the traditional rental system and the proposed percentage-sharing model in Telugu cinema exhibition. Exhibitors say under the current rental system, Telangana's nearly 450 single-screen theatres—including around 150 in Hyderabad—are struggling to cope with rising operational expenses that range from ₹12,000 to ₹18,000 per day.
How the Existing Rental Model Works
Theatre exhibitors pay distributors or producers a fixed rental amount, either weekly or for a fixed run, to screen a film. This payment is made regardless of the film's actual box office performance. If the film performs well, exhibitors can profit after covering the agreed rental and expenses. But if collections are poor, theatre owners still have to pay the fixed amount, leading to losses.
The proposed percentage-sharing model would split revenue as follows:
- Week 1: 60% to exhibitors, 40% to distributor-producer
- Week 2: 50% to exhibitors, 50% to distributor-producer
- Week 3 onwards: 40% to exhibitors, 60% to distributor-producer
Industry Voices
Raj Kandukuri, a film producer and director, expressed concern: "They keep saying ticket prices won't be increased, yet GOs continue to push rates higher. The theatre system is already in poor shape, and audiences aren't even stepping foot into theaters anymore. If prices are not brought under control now, survival itself will become a challenge."
On the other hand, Sirish Reddy, a film exhibitor and producer, stated: "Percentage system is not about targeting upcoming big films, but a long-pending demand exhibitors have raised for years. Even if the government allows a ticket price hike through a GO, we will not increase prices."
Why Fight Over Reduced Revenues While Ignoring Bigger Issues?
While exhibitors and producers continue debating revenue-sharing models, some industry voices believe the crisis extends far beyond theatre economics alone. Producer Bunny Vas reacted through a social media post on Wednesday, arguing that the industry was ignoring deeper structural problems. "There's no point fighting over how to divide shrinking revenues if we are unwilling to address the actual issues affecting the industry," he wrote. He further stated that star heroes must complete films faster, OTT release windows should be extended beyond the current 27-day cycle, and filmmakers need to focus on creating stronger content that genuinely interests audiences. "Only then will people return to theatres," he said.
Speaking about the current financial situation, Bunny Vas added that revenues from big-budget films have nearly halved, while earnings from smaller films have fallen even further. "We are celebrating collections that are actually being driven by increased ticket prices and rising costs, which ultimately place an extra burden on audiences," he said.
Suniel Narang, a producer and exhibitor, commented: "It has been a very serious issue over the past few years. Multiplexes are constantly upgrading with technologies like HDR by Barco, Dolby, and EPIC, but how can single screens improve the cinema-viewing experience without financial support?"
No Meaning in Continuing: Natti Kumar Quits
The ongoing turmoil has also exposed growing dissatisfaction within industry bodies. Telugu Film Producer Council Joint Secretary Natti Kumar on Wednesday stepped down from his position, citing concerns over transparency, accountability, and the functioning of the organisation. "Under these circumstances, I feel there is no meaning in continuing in a responsible position where I am unable to contribute effectively," he said in his resignation statement. He further stressed the need for "transparency, accountability, regular meetings, fair elections, and collective decision-making" within the council. "I sincerely request all concerned members to take necessary steps to conduct proper elections, appoint qualified accountants and auditors, maintain transparent accounts, strengthen the council's administration, and ensure that the organisation functions democratically and professionally in the future. I request the council to kindly accept my resignation and take it into consideration for the better future functioning of the organisation," he added.
