Annapoorna Studios To Revive Healthy Distribution Model in Telugu States
“Annapoorna Studios is determined to bring back the old-fashioned yet viable and honest relationship between producers and distributors,” says a source close to the banner.

Renowned banner Annapoorna Studios is strengthening its distribution business with an aim to restore a healthy and sustainable distribution model in the Telugu states. The studio believes in reviving the traditional and transparent relationship between producers and distributors, which industry insiders say is the need of the hour for the survival of content-driven cinema.
“Annapoorna Studios is determined to bring back the old-fashioned yet viable and honest relationship between producers and distributors,” says a source close to the banner.
The studio is now gearing up for the release of Tamil star Suriya’s upcoming action entertainer Veerabharudu in nearly 250 theatres across Andhra Pradesh and Telangana on May 14. The Telugu dubbing rights of the film are reportedly valued at over Rs 4 crore. “We are planning a wide release to ensure maximum reach among Telugu audiences since Suriya enjoys immense respect and popularity here,” the source adds.
Apart from mainstream releases, Annapoorna Studios is also focusing on supporting content-oriented cinema. The company will release Kannada film Balan The Boy on June 19 as part of its efforts to encourage fresh storytelling.
“We want to promote and support content-based films to offer Telugu audiences more variety. Earlier, we released the path-breaking Malayalam film Eko in Telugu states and received a good response. Young talent needs strong support from distributors to build a career,” the source explains.
The banner is reportedly following the decades-old commission-based distribution model, where distributors receive around 8 to 10 percent of the collections, while the remaining revenue goes to the producer. Industry observers feel this system is more supportive of producers, especially those making small and medium-budget films.
“This model can help the industry survive during tough times. If occupancy drops below 50 percent in the second week, distributors can still convince exhibitors to continue screening the film for another week or two. Many films pick up through word-of-mouth publicity, and this support is crucial for young filmmakers,” the source says.
According to industry insiders, the system changed drastically over the last decade when several major exhibitors entered distribution and started acquiring films directly from producers, sidelining traditional distributors.
“Exhibitors mostly focus on immediate occupancy. If collections fall, films are quickly removed from theatres. This has affected many filmmakers. Annapoorna Studios wants to revive the distributor-driven system and safeguard good cinema,” the source concludes.

