A major disruption appears imminent in the Telugu film industry as tensions between producers and theatre owners escalate over revenue sharing issues. The disagreement has reached a critical stage, with exhibitors preparing for an indefinite shutdown of single screen theatres across Telangana from May 1.
The exhibitors argue that the existing rental model is no longer sustainable due to rising operational costs and declining footfall. They say the growing influence of digital streaming platforms has reduced audience turnout, making it increasingly difficult to run theatres profitably.
To address these challenges, theatre owners are demanding the implementation of a revenue sharing model similar to multiplex systems. Under this proposal, exhibitors are seeking a share of 60 percent in the first week, 50 percent in the second week and 40 percent in the third week from film collections.
However, the proposal has been strongly opposed by the Active Telugu Film Producers Guild. Producers argue that film production costs have already surged significantly and introducing such a model would further strain their finances, potentially leading to greater losses.
With both sides holding firm on their positions, efforts to reach a compromise have so far failed. Exhibitors have warned that if a resolution is not achieved by April 30, the shutdown will proceed as planned.
The potential strike has cast uncertainty over several upcoming film releases scheduled for May. Movies featuring actors like Nikhil Siddhartha and Samantha Ruth Prabhu are among those that could face delays or disruptions if theatres remain closed.
Industry observers note that the situation could have a wider impact on the entire distribution chain, affecting not only filmmakers and exhibitors but also audiences and ancillary businesses dependent on cinema.
As the deadline approaches, there is growing pressure on both sides to find common ground and avoid a prolonged shutdown that could harm the Telugu film industry during a crucial release window.