Telugu producers are divided over a major shift in the film exhibition sector. The recent announcement by 23 theatres in Telangana to adopt a percentage-based screening model has sparked controversy. The Active Producers Guild has refused to accept the proposed 60-50-40 percentage sharing model, citing it as a unilateral decision.
The industry is now split into two camps. The Dil Raju group, including senior producer Suresh Babu, supports the percentage-based system, while the opposing camp wants theatres to continue under the current rental model. Industry sources suggest the Dil Raju group is aligning with exhibitors due to their current production slate.
The opposing camp includes prominent producers like Ravi Shankar Yalamanchili, Sudhakar Cherukuri, and TG Vishwa Prasad. They have several big-budget films in progress and are concerned about the impact on producer revenues and box office performance. The proposed percentage system would see exhibitors taking 60% of collections in week one, 50% in week two, and 40% from week three onwards.
The Telangana High Court has previously intervened in exhibition and ticket pricing matters, adding complexity to the dispute. It remains to be seen which group will prevail in this fight between the rental system and the percentage-based screening model.