Exhibitors vs Producers: War Over Revenue Sharing Threatens Big Film Releases

The simmering tension between exhibitors and producers in Telangana Film Chamber has escalated into open warfare, with major producers now accusing theater owners of deliberately sabotaging big film releases through unreasonable revenue-sharing demands.

With massive releases like Peddi and Fouji lined up, the timing of this dispute couldn't be worse for the industry. Maitri Movie Makers chief Ravishankar and producer Nagavamshi have come out swinging against what they see as exhibitors' extortionist tactics.

"They're basically saying 'give me a share in your film' like some kind of forced partnership," Ravishankar fired back at the exhibitors' stance. His frustration is palpable: while the percentage model works smoothly for the 150 regular films released annually, exhibitors are now targeting the handful of big-budget entertainers that actually drive substantial profits.

The producers' anger stems from what they perceive as calculated troublemaking. Just when the industry needs unity to push major releases that could revive theatrical business, exhibitors are digging in their heels on revenue sharing. Nagavamshi pointedly questioned whether the industry really needs this theater crisis when films like Peddi should be pulling audiences back to cinemas.

Particularly galling to producers is the exhibitors' demand for protection against second-week losses: essentially asking filmmakers to subsidize their business risks beyond opening week performance. This shifts financial burden from theater owners to content creators in an unprecedented way.

The war of words turned personal when exhibitors claimed special shows cost only ten thousand rupees. Nagavamshi demolished this with insider knowledge, revealing the reality of paying lakhs in theater rent, giving away 25% tickets free, and covering police permissions: all for sentiment value of a single theater.

What's emerging is a fundamental disagreement about who bears industry risks. Exhibitors want guaranteed returns regardless of a film's performance, while producers argue this destroys the basic economics of filmmaking. With major releases hanging in the balance, this standoff threatens to damage the very films that could restore theatrical business to health.