Telugu Film Exhibitors Seek Profit Share Model, to Set June 1 As Deadline

Hyderabad: Around 1,600 movie exhibitors in Andhra Pradesh and Telangana have threatened to shut movie theatres, demanding that producers allow them to switch over to a revenue-sharing model as compared to the current rental model.

"With footfalls declining at theatres over the past six months or more, the rental system is no longer viable for exhibitors. Many film shows have been cancelled due to a lack of even seven viewers. However, power charges have increased, and maintenance costs have risen three to four times,” said Telugu Film Chamber of Commerce president Bharat Bhushan.

Around 60 exhibitors attended a meeting on Sunday, including major players like Suresh Productions.

“They are seeking a share in collections between producers and exhibitors. For instance, they are seeking an 80-20 or 70-30 revenue-sharing model each week, instead of the old rental system. Rents in theatres vary from Rs 10,000 to Rs 25,000 depending on the location, and only revenue sharing will help their cause," he pointed out.

"Most exhibitors from the two Telugu states are adamant about adopting the percentage system over the rental model," says a source.

The meeting reportedly concluded with the Telugu Film Chambers agreeing to send a formal letter to producers, urging them to consider the exhibitors' request; otherwise, alternative plans are being considered.

"Already, a few exhibitors in East Godavari have said they will shut down theatres from June 1. If their demands are not considered, hundreds of exhibitors are looking to shut down operations. This is not an ultimatum, but the exhibitors are firm on implementing the percentage system. However, the exact percentage split will be decided after meeting with producers in the coming days," he concluded.