Revenue row rocks Telugu cinema, exhibitors threaten theatre shutdown from June 1

Hyderabad: A serious conflict over revenue-sharing models has erupted in the Telugu film industry, with exhibitors warning they will shut down theatres across Telangana and Andhra Pradesh starting 1 June if their demands are not met.

The dispute centres on the distribution of earnings between producers and single-screen theatre owners. At a meeting held at the Film Chamber, exhibitors argued that producers currently receive a fixed revenue percentage from multiplexes but not from single screens. They are demanding uniformity across platforms, pressing for the same percentage-based model to be implemented in single-screen cinemas as seen in multiplexes and other states.

The meeting was attended by leading industry figures including producers Dil Raju, A. M. Rathnam, Naga Vamsi, Suresh Babu, and Ravi from Mythri Movie Makers, along with stakeholders from several upcoming June releases. Exhibitors contend that for over two months they have been urging the Chamber to address the imbalance, stating that unequal revenue terms threaten the long-term viability of smaller theatres.

Stakeholders warn that unresolved negotiations could result in losses amounting to crores of rupees.

Distributors added that theatres only see packed houses during the release of big-budget films, while smaller productions struggle to draw audiences, leading to unsustainable losses.

Exhibitors argue that a standardised percentage system would ensure fairer earnings across the board, particularly for single-screen theatres. Producers, on the other hand, are calling for a decisive framework that guarantees them up to 70% of revenue during the first week of major film releases.