Hyderabad: In a major development for Telangana’s film exhibition sector, 23 single-screen theatres in Hyderabad have shifted from the rental system to a percentage-based revenue model starting April 3, 2026.
Move aimed at survival of single screens
The decision comes amid rising operational costs and changing film distribution trends, which have made the traditional rental model difficult to sustain. Unlike single screens, multiplex chains across India have long been following a percentage-based system.
The new model is expected to help theatre owners manage costs better and ensure long-term survival.
Revenue sharing terms
As per the agreement, revenue will be shared between distributors and exhibitors in phases:
- Week 1: 60 percent
- Week 2: 50 percent
- Week 3: 40 percent
After the third week, the continuation of films will depend on their performance. For big-budget films, distributors may get an additional 2.5 to 5 percent share if ticket prices are increased.
The move has been supported by leading distributors and exhibitors including Suniel Narang, Shirish Reddy, and Bobby, who have informed the Telangana Film Chamber of Commerce.
However, Mythri Movie Makers’ Sashidhar Reddy has not agreed to the new system. Theatres under his control have opted out of the agreement.
Big films to decide success
While the model has been implemented in 23 theatres, exhibitors believe its success depends on whether major star-driven films follow the same system.
If widely adopted, the percentage-based model could reshape the business dynamics of single-screen theatres in Telangana.
