Producers Split as Exhibitors Push for Box Office Share
The central issue lies in the demand for a percentage share in box office collections, which has caused a rift among producers and exhibitors
According to industry sources, a group of prominent producers has called for a crucial meeting with the exhibitors at the Telugu Film Chamber of Commerce today to address growing concerns over the demands being made by exhibitors from Telangana and Andhra Pradesh.
The central issue lies in the demand for a percentage share in box office collections, which has caused a rift among producers and exhibitors. “Theatre rentals already vary significantly—from ₹1 lakh to ₹6 lakh per week in major towns and cities, and about ₹70,000 in smaller towns,” says a leading producer. “Exhibitors make good money by simply screening a film, without bearing any creative or financial risks. Expecting a 30% to 40% share of a ₹12 crore collection in the first week is unreasonable, especially when a producer may have invested ₹40 crore in making the film.”
The producer argues that in the current climate, without guaranteed revenues from OTT rights or Hindi dubbing deals, producers are increasingly vulnerable to losses.
He further points out that most theatres operate under lease agreements. “Out of roughly 1,500 theatres in the Telugu states, only about 200 to 300 are owned outright. The majority are leased by wealthy producer-distributors who also produce films and control the distribution and exhibition pipeline. This leaves independent theatre owners with little influence in the larger conversation.”
Additionally, some theatre operators have allegedly threatened to convert cinema halls into marriage venues or malls. “With theatres occupying over an acre of prime land, they see real estate as a gold mine. Meanwhile, producers have no such fallback. If a film fails, they lose everything,” he emphasizes.
Regarding the way forward, producers may consider a hike in fixed rentals rather than agreeing to a percentage share model. “A rental increase can be discussed, but profit-sharing should apply across the board—including for small-budget films, which account for over 100 releases annually—not just star-studded projects,” he concludes.