Hyderabad: Single-screen theatre owners in Telangana have reportedly threatened to shut their theatres from May 1 if the government does not implement a percentage-based revenue-sharing system by April 30. As per the latest reports, exhibitors say the current rental system, where they pay a fixed amount to distributors regardless of a film’s performance, is causing heavy losses.
Losses Under Rental System
Under the rental model, theatre owners must pay distributors in advance for screening rights. This protects producers and distributors but leaves exhibitors at risk if collections are low. Single-screen theatres have struggled to compete with multiplexes for the past five years, facing declining footfall, rising operational costs, and the growing impact of OTT platforms.
Move Towards Percentage System
Multiplexes already follow a percentage system, where revenue is shared between producers, distributors, and theatre owners based on ticket collections. Hyderabad exhibitors have started implementing this system in 23 theatres since April 3. Under the model, theatres receive 60% of collections in the first week, 50% in the second, and 40% in the third week. Other single-screen exhibitors now want similar terms.
Producers Express Concerns
Producers and distributors have opposed the shift, citing high production costs and the difficulty of recovering expenses under a percentage model. They also worry about revenue losses for big-budget films. The Telangana Film Chamber of Commerce has suggested minor adjustments, such as an extra 2.5 to 5% for distributors if ticket prices increase for major releases.
Government Intervention Sought
Exhibitors have requested government support to regulate ticket prices, provide tax relief, and offer concessions on electricity charges. They have also demanded that films should not release on OTT platforms for at least eight weeks after their theatrical release to improve theatre occupancy.
Statewide Impact
Telangana has around 450 single-screen theatres, including 150 in Hyderabad. About 250 theatre owners have announced they will screen films only under a revenue-sharing model from May 1. Last year, nearly 400 theatres in the state had closed for 10 days due to mounting losses. Theatre owners say daily running costs are between Rs. 12,000 and Rs. 18,000, while collections often fall short, making the current system financially unsustainable.
