Telangana Exhibitors Issue “Percentage or Nothing” Ultimatum; ‘Peddi’ To Face Heat

Leading distributor and exhibitor Sirish Reddy, brother of noted producer Dil Raju, stated during a press meet that nearly 100 theatres have shut down since the release of RRR due to mounting losses in the exhibition sector.

“The exhibition business has gone from bad to worse. Producers don’t understand the plight of exhibitors, while we are witnessing the crisis firsthand. The situation is extremely bleak,” said Sirish Reddy.

He pointed out that big-budget Telugu films have now transformed into pan-India projects with simultaneous releases across Maharashtra, Delhi, Tamil Nadu, and Bengaluru.

“Telugu producers are following the percentage-sharing model in other states, but they are refusing to implement the same system in Andhra Pradesh and Telangana. That is completely unfair,” he added.

According to exhibitors, the percentage-sharing system is already prevalent in most parts of India, but continues to be ignored in the Telugu states. They are now demanding an immediate shift from the traditional rental-based model to a revenue-sharing format — 60 percent share for exhibitors in the first week, 50 percent in the second week, and 40 percent thereafter.

“The theatrical experience can never be replaced. Fan celebrations like cut-outs, milk abhishekams, and dances are possible only in theatres. Re-releases are drawing crowds even when those films are already available on television and OTT platforms because watching films in theatres remains special and memorable,” Sirish Reddy explained.

The 40-member exhibitors’ meeting reportedly saw participation and support from influential industry figures, including Suniel Narang, Dil Raju, and representatives from Suresh Productions, strengthening the exhibitors’ stand in Telangana.

However, Mythri Movie Makers has emerged as the strongest opponent of the proposed system. The production house is preparing to release Peddi worldwide on June 4, but exhibitors have warned that unresolved revenue disputes could create hurdles for the film’s release in Telangana, which has over 400 theatres.

The conflict had already intensified earlier this month when Mythri’s release, Jetlee, allegedly faced a virtual ban on its opening day after exhibitors reportedly refused to schedule the film amid the ongoing dispute. Mythri Movie Makers later condemned what it described as “unfair tactics,” alleging that certain exhibitors even pressured multiplexes by withholding films over single-screen terms.

Since Mythri is also producing and distributing Peddi, exhibitors have now indicated that the same unresolved grievances could affect the Ram Charan-starrer as well.

Leading exhibitor Suniel Narang said the issue has now reached a critical stage.

“This is a very serious issue. Producers say they will implement the percentage system, but they never do. Producers are also facing losses, and everyone says the situation is difficult. Multiplexes are introducing new technologies and modern facilities, but single-screen theatres are unable to afford such upgrades. If theatres are equipped with modern facilities like Dolby, audiences will definitely return to single screens as well,” he stated.

“If single-screen theatres close down, it will eventually hurt producers and distributors too. We are not targeting any particular film. We have been bringing this issue to the attention of producers for many years. They continue to make promises that aren't being implemented. That is why we organized this meeting. We also seek the support of the media in our efforts to save single-screen theatres,” he added.