Hyderabad: The Telugu film industry is currently witnessing a major discussion around theatre revenue sharing. What began as a silent concern among theatre owners has now turned into a bigger issue between exhibitors and producers, especially ahead of the release of Peddi.
Single-screen theatre owners in Telangana are now demanding a shift from the existing rental model to a percentage-based revenue system, saying their survival is becoming difficult under the current structure.
Issue Between Producers and Theatre Owners?
At present, most single-screen theatres operate on a fixed rental model. This means theatre owners receive a predetermined amount regardless of how well the movie performs.
According to exhibitors, this system no longer works in today’s market where operating costs such as electricity, maintenance, and staff salaries continue to rise. Even if a film becomes a blockbuster, the theatre owner’s income remains mostly unchanged.
Rental System vs Percentage System
The difference becomes clear when comparing revenue distribution.
If a movie earns Rs. 1 crore gross:
Under the current rental system for single screens: Theatre owner receives around Rs. 7 lakh. Remaining Rs. 93 lakh goes through the distribution chain to producers.
Under the percentage-sharing model followed by multiplexes: Multiplex operators retain around Rs. 45 lakh. Producers receive around Rs. 55 lakh.
Exhibitors argue that this creates a major imbalance between multiplexes and single-screen theatres.
The 60:40 Model
The proposed solution from exhibitors is a 60:40 revenue-sharing formula.
Under this model: 60% goes to producers and distributors. 40% goes to theatre owners.
Exhibitors believe this approach would help protect single screens and make theatre operations sustainable in the long term. However, several major producers are reportedly not ready to implement the change immediately.
Chiranjeevi’s Role
With tensions rising, exhibitors are reportedly looking toward Chiranjeevi for discussions and possible mediation. Industry circles believe a mutual solution could emerge soon.
For now, all eyes remain on whether the percentage system debate will impact Peddi’s release and shape the future business model of Telugu cinema.
