Dil Raju to Mediate Crucial Producers–Exhibitors Dispute on May 18

Veteran producer and chairman of the Telangana State Film Development Corporation, Dil Raju, is set to convene a critical meeting on May 18 between Telugu film producers and exhibitors from Telangana and Andhra Pradesh. The outcome could be a defining moment for the regional film industry, with the future of over 1,500 single-screen theatres hanging in the balance.

The timing is especially crucial, as several big-budget films—Hari Hara Veera Mallu, Kingdom, Vishwambhara, Kuberaa, Mass Jathara, and Kannappa—are gearing up for release in June and July. A theatre shutdown from June 1, as threatened by exhibitors, could deal a heavy blow to these high-stakes releases.

At the core of the ongoing rift is the exhibitors’ demand for a transition from the long-standing rental model to a fairer revenue-sharing system, similar to the one already adopted by multiplexes.

“This change could be a game-changer,” said an exhibitor. “Right now, if a film earns ₹40 lakh in a week, theatre owners get only ₹1 lakh in rent while the distributor takes the lion’s share. But if the film earns only ₹80,000, producers suddenly want to split revenues 50-50. Either way, we lose.”

With operational costs rising and audience turnout declining, many single-screen theatres have already cut back from the standard 24 shows per week to just 12–14—or shut down entirely. “Most of us are barely functioning, and many theatres remain dark for days,” an exhibitor noted.

In East Godavari district, exhibitors have issued an ultimatum: unless a revenue-sharing model is implemented, they will shut down theatres starting June 1. Exhibitors in Krishna and Guntur districts are reportedly considering similar action.

“This outdated rental model is no longer sustainable,” another exhibitor emphasized. “Producers walk away with the profits while we shoulder the losses. We need a model that shares both risk and reward.”

Veteran exhibitor Madala Ramakrishna pointed out that their demand is far from radical. “Multiplexes already operate on a 50-50 revenue-sharing model with distributors. We’re simply asking for parity. With over 1,300 single screens across the Telugu states, our survival is essential for the industry’s health.”

The exhibitors’ struggle isn’t new. Last year, nearly 400 theatres in Telangana shut down for 10 days starting May 17 due to mounting losses. “It costs us ₹12,000 to ₹18,000 a day to run four shows,” one exhibitor explained. “We’re earning just ₹3,000 to ₹4,000, and even then we have to pay the distributor. When we’re open, we lose ₹6,000 a day—when closed, we lose ₹4,000. We’re bleeding either way.”

With tensions reaching a breaking point, all eyes are now on Dil Raju and the May 18 meeting—a pivotal step toward stabilizing the exhibition ecosystem and securing the future of Telugu cinema.