Telangana Film Chamber Introduces a Percentage Revenue Model

The Telangana State Film Chamber of Commerce has introduced a percentage-based revenue sharing model between distributors and exhibitors, marking a significant development in Telangana’s film trade. For the past few years, there have been ongoing discussions and debates around the revenue-sharing system, particularly as single-screen theatres continue to struggle in a rapidly changing business environment.

Chamber president Sunil Narang said the decision was arrived at after detailed deliberations between distributors and exhibitors, expressing confidence that it would go a long way in helping theatres survive. Under the new agreement, distributors and producers will receive 60% of the revenue in the first week of a film’s run, 50% in the second week, and 40% in the third week, while exhibitors retain the remaining share. For big-budget films, there could be an additional 2.5% to 5% share for distributors if ticket prices are increased.

The move comes at a time when rising costs and shifting audience behaviour have made the traditional rental model increasingly difficult, especially for independent theatres. Single screens in smaller towns have been finding it hard to sustain operations, whereas multiplex chains have already been functioning on a percentage-based model. By adopting this system, exhibitors hope to create a more balanced and sustainable ecosystem for theatre owners, distributors, and producers.

In Hyderabad, as many as 23 theatres, including Hitech, Sreedevi, Sri Ramulu, Gokul, Mallikarjuna and Sai Ranga, are set to screen films on a percentage basis instead of the rental system. However, the response from the exhibition sector is not entirely unanimous. Some exhibitors feel the model will only be truly beneficial if distributors agree to release big-star films under the same terms, as smaller films may not generate sufficient revenue to make the system effective.

While the percentage model is expected to begin with films like Biker and Rakasa, exhibitors believe the real test will come with major releases such as Peddi. If top-tier films consistently follow this system, it could emerge as a game-changer for the industry; otherwise, its impact may remain limited.