Telangana Exhibitors Draw Battle Lines: Percentage System or No Screening

The Telangana exhibitors have thrown down the gauntlet. In what could reshape the Telugu film industry's economics, the association has issued an ultimatum that reads like a declaration of war: accept percentage-based revenue sharing for all releases, or find other screens to showcase your films.

The timing couldn't be more strategic. With several big-ticket releases lined up, exhibitors have chosen this moment to leverage their collective strength. The stark reality they've presented is sobering: 1,372 theatres have shut down across the state in the past decade, with 100 closures in Nizam alone since RRR's release. These aren't just statistics; they represent the slow death of the single-screen ecosystem that once formed the backbone of Telugu cinema.

SVC's Sirish Reddy, often seen as the face of this movement, has responded to critics with characteristic defiance. When questioned about targeting specific production houses, he announced that all future SVC projects will follow the percentage model, promising to reveal a major project soon to prove his commitment to big-budget filmmaking. It's a smart counter-narrative that positions him not as someone who's lost relevance, but as a pioneer of necessary change.

The exhibitors' argument carries weight beyond mere self-interest. While producers can weather financial storms through OTT pre-sales and other revenue streams, single screens operate on razor-thin margins. The current system, where exhibitors pay fixed rental amounts regardless of a film's performance, has become unsustainable in an era where even blockbusters have shortened theatrical runs.

What makes this movement particularly potent is its timing. As producers increasingly depend on pre-OTT approvals from Mumbai offices, they might soon find themselves similarly dependent on multiplex chains if single screens disappear. Today's 55-45 revenue sharing demand from exhibitors could pale in comparison to what consolidated multiplex operators might demand tomorrow.

The real test comes with upcoming releases. Will producers call the exhibitors' bluff, or will pragmatism prevail? The answer will determine whether this marks a genuine power shift in Telugu cinema or just another round of industry posturing. Either way, the single screens have made their position clear: adapt to the new economics, or find alternative venues for your grand theatrical dreams.