A major controversy has hit the Telugu film industry as the Telangana Film Chamber and the Producers Guild clash over theatre revenue sharing models. The dispute centers on the push to replace the existing rental system with a percentage-based policy for single screen theatres.
If no resolution is reached by April 30, the Exhibitors Association has warned that single screen theatres across Telangana may shut down from May 1. The standoff has intensified into a cold war, with exhibitors insisting that the percentage model is essential for theatre survival while producers argue it is not viable under current market conditions.
At present, most single screen theatres in Telangana operate on a rental system where producers pay a fixed rent to theatre owners irrespective of box office performance. The Telangana Film Chamber is demanding a revenue-sharing model similar to multiplexes, proposing that theatres receive 60 percent of first week collections, 50 percent in the second week, and 40 percent in the third week.
The chamber noted that this percentage system is already followed in nearly 23 major theatres in Hyderabad and is successfully implemented in several other states. Exhibitors claim they are facing heavy losses under the rental model and need a fair share to sustain operations. The Producers Guild has strongly opposed the Telangana Film Chamber’s proposal, stating that giving such a large share of collections to theatres is not possible in the present market.
The guild maintains that films should continue to be screened only under the existing rental system and is firm on releasing new titles only in theatres that agree to the fixed rent model. This rigid stand has widened the gap between theatre owners and producers, escalating the conflict. The Telugu Film Chamber has also questioned the guild’s authority in taking key decisions, sending an official letter demanding immediate resolution and warning of strict action if clarity does not come by April 30.