Cracks in Tollywood Surface Over ‘Percentage’ System, Turning Into Guild vs Guild Situation

A fresh divide seems to be emerging in Tollywood following the Telangana State Film Chamber of Commerce’s move to introduce a percentage-based revenue sharing model between distributors and exhibitors. The decision marks a significant shift in Telangana’s film trade, especially at a time when single-screen theatres are struggling to stay viable.

Chamber president Sunil Narang stated that the decision came after detailed discussions between stakeholders and expressed confidence that it would help theatres sustain in the long run. As per the new model, distributors and producers will receive 60% of revenue in the first week, 50% in the second week, and 40% in the third week, with exhibitors retaining the remaining share. For big-budget films, distributors could gain an additional 2.5% to 5% if ticket prices are increased.

In Hyderabad, around 23 theatres—including Hitech, Sreedevi, Sri Ramulu, Gokul, Mallikarjuna, and Sai Ranga—are preparing to adopt the percentage system instead of the traditional rental model. The shift is expected to gradually expand across the Nizam region from April 30.

However, the move has not gone down well with a section of producers. Sixteen members of the Producers Guild have reportedly opposed the system, stating that they prefer to continue with the existing rental model and negotiate terms directly with exhibitors.

A producer comments, “Cracks within Tollywood are clearly visible now. Big players are unwilling to compromise, and that is making the situation more complicated. We have producers, distributors, and exhibitors with overlapping interests, which is creating more problems than solutions.”

He adds, “Producers fear that they may end up with a lesser share under the percentage system. On the other hand, those supporting it argue that theatres cannot survive under the current rental model. It has turned into more of a guild-versus-guild situation.”

Meanwhile, T Prasanna Kumar, honorary secretary of the Telugu Film Producers Council, has called for dialogue and resolution. “Discussions are underway between producers and exhibitors. We hope they arrive at an amicable solution, especially with several big-ticket releases lined up this summer,” he says.

With both sides holding firm to their positions, the coming weeks will be crucial in determining how this conflict shapes the future of film distribution and exhibition in Tollywood.