New Ticket-Hike Rules Get Industry Nod, But Producer Raises Red Flags

The Telangana Government’s latest Government Order (GO) on the Telugu film industry has been welcomed by the Active Telugu Film Producers Guild (ATFPG) as a progressive step, but a leading producer has urged the government to adopt a more cautious approach, particularly on the proposed revenue-sharing mechanism linked to enhanced ticket prices.

The new policy seeks to balance the growing investment in big-budget films and modern exhibition technologies with audience accessibility. With Telugu cinema increasingly reaching global markets, high-end formats such as IMAX, Dolby Cinema and HDR require substantial investments, and the government has provided a regulated framework for eligible films to seek enhanced ticket prices.

Under the new policy, enhanced ticket prices will not be granted automatically. Eligible high-budget films will have to approach the government for permission, allowing authorities to review requests before approving premium pricing.

The policy also mandates that 25% of the total seating capacity in theatres, irrespective of whether they are AC, non-AC, special or multiplex screens, be reserved for the non-premium category. The provision is aimed at ensuring that higher ticket prices do not completely put major releases beyond the reach of ordinary moviegoers.

The government has also allowed five shows a day, a move expected to help exhibitors meet peak demand while potentially freeing up screens for other films. This could prove particularly useful for small and mid-budget movies that often struggle to secure adequate theatrical space during the release of big-ticket films.

Another important provision is the proposed welfare fund for film industry workers. The initiative recognises the contribution of technicians, workers and other professionals who form the backbone of the Telugu film industry.

The ATFPG has welcomed the overall policy, arguing that it goes beyond ticket pricing and could help create a stronger and more sustainable film ecosystem by encouraging investment, supporting modern exhibition technologies and benefiting producers, exhibitors and workers.

However, a leading producer has urged the Telangana Government to go slow, particularly with regard to the proposed revenue contribution from films that receive ticket hikes.

“Tollywood collections that are put up are mostly fake, so the money the government is expecting would be just a myth,” the producer says, questioning the reliability of reported box-office figures.

He also points out that the industry's performance can be unpredictable, with even highly anticipated big-budget films failing at the box office. Referring to films such as The Raja Saab and Akhanda 2, he says that asking producers to pay the government after a film fails could become difficult.

“We heard one producer paid Rs 1 crore already and others are taking time,” he says, suggesting that the government should consider a more flexible model.

The producer proposes that the government charge only 5% or 10% when a film fails, while taking the full 20% from blockbusters that generate substantial profits.

“I request the government to charge 5 or 10% if the film flops and take the full 20% on blockbusters,” he says.

According to him, such a model would be more practical and would encourage producers to continue seeking ticket-hike permissions when justified by the scale and demand for a film.

He further argues that producers could become increasingly reluctant to approach the government for enhanced ticket prices if they are required to surrender a significant portion of their profits.

“In future, producers would be wary of seeking ticket hikes since they have to pay Rs 2 crore out of Rs 10 crore profit in a season where losses are counted more than sucess in Tollywood,” he concludes.