Recent Random Post:
Telangana Theatre Percentage System Dispute Escalates Ahead of Big Releases
A day ahead of the release of two major films, Biker and Rakasa, Telangana exhibitors have once again raised the long-pending issue of the percentage revenue-sharing system in theatres.
In a significant development, 23 single-screen theatre owners have issued a press note announcing that they will henceforth operate only under a percentage-based model. As per the proposed structure, exhibitors demand a 60% share in the first week, 50% in the second week, and 40% in the third week, with one-show housefull collections considered as holdover gross. They also stated that this system will be implemented across the state in a phased manner.
While major theatre stakeholders like Suniel Narang, Sirish Reddy, and Bobby (Geetha) have reportedly agreed to the proposal, Mythri Sasi has opposed it, citing concerns over the impact on big-budget films under their distribution.
The percentage system debate is not new. It first emerged in East Godavari last year and gradually spread to other regions. Although producers initially rejected the idea, tensions eased temporarily after discussions involving leading industry figures.
Exhibitors argue that the current rental model has become increasingly unsustainable, especially as distributors often switch to percentage terms once films underperform after the first Monday. They claim this results in an uneven risk-sharing structure, where exhibitors bear losses while receiving minimal returns when films fail.
On the other hand, producers remain hesitant to fully adopt the percentage system, stating that it would significantly reduce their share, particularly during the crucial first weekend. With non-theatrical revenues also weakening and theatre footfalls declining, they argue that the financial pressure is already high.
The SVC Group, a strong supporter of the percentage model, has reportedly pushed the issue ahead of the release of Toxic, while industry observers note that the timing also coincides with Mythri’s upcoming big release Peddi, adding further tension to the situation.
With both sides standing firm, the dispute has once again brought uncertainty to the theatrical business. While distributors of the upcoming films are expected to feel the immediate impact, industry insiders warn that if the issue escalates further, it could even lead to temporary theatre shutdowns until a resolution is reached.
