If the ongoing dispute between film exhibitors in Hyderabad and Telugu film producers over revenue-sharing model does not get resolved by this month end, several theatres in Hyderabad may face shut down from May 1.
The Telangana Film Chamber of Commerce has announced that films will be screened only under a percentage-based revenue model in 23 major theatres across Hyderabad.
As per the proposed structure, exhibitors will receive 60% of revenue in the first week, 50% in the second week, and 40% in the third week.
Exhibitors, particularly multiplex operators, are insisting on the adoption of this model, citing its prevalence in other states.
Single-screen theatre owners have also backed the move, arguing that the existing rental-based system has been causing them huge financial losses.
However, the Producers’ Guild has strongly opposed the decision, categorically rejecting the percentage-sharing model.
Producers have stated that they will supply films only to theatres operating under the rental system, escalating tensions within the industry.
Reacting sharply, the Telangana Film Chamber questioned the authority of the Producers’ Guild to take such a stand, and formally wrote to the Telugu Film Chamber seeking intervention. The Chamber has set April 30 as the deadline for a final resolution.
In a significant escalation, exhibitors warned that single-screen theatres may be shut down from May 1 if the percentage system is not implemented.
The Telangana Film Exhibitors Association has also indicated its readiness to proceed with a closure.