Telugu Film Chamber Averts Crisis: 15-Member Committee to Resolve Theatre Percentage Row

The Telugu film industry narrowly avoided a complete breakdown yesterday as the Film Chamber of Commerce managed to broker a fragile peace between warring producers and exhibitors after a stormy two-hour meeting that witnessed shouting matches and near-physical confrontations.

Chamber President D Suresh Babu, who at one point nearly walked out of the chaos, eventually steered the fractious gathering toward forming a 15-member committee, five each from producers, distributors, and exhibitors, to resolve the contentious shift from fixed rental to percentage-based revenue sharing in theatres.

The meeting turned ugly early, with Asian Suniel reportedly threatening "Khatam Kartha Thum" while exhibitor Sridhar and producer Naga Vamsi nearly came to blows. It took Allu Aravind's intervention to restore order, with the veteran producer firmly telling exhibitors: "Producers have agreed for percentage system. So it's not fair to demand immediate implementation. Peddi is important to everyone, so cool down and agree."

Dil Raju played a crucial mediating role in convincing exhibitors to accept the committee formation, while veteran producer C Kalyan emerged as the voice of optimism, declaring talks "quite positive" with resolution expected within two months.

The immediate trigger for this industry upheaval has been the struggling economics of single-screen theatres under the current fixed rental model. Exhibitors have been pushing hard for percentage sharing to survive, while producers worry about losing control over their revenue streams.

Significantly, Ram Charan's much-delayed Peddi has been exempted from any new arrangement, with the committee tasked to finalize terms only after the film's release. This exemption was crucial in getting producers to agree to the committee formation.

The committee notably excludes potential troublemakers like Naga Vamsi and Suniel Narang to avoid further conflicts. While producers publicly speak of a 1-2 month timeline, exhibitors privately claim they were promised a plan in 1-2 weeks: suggesting the real negotiations are just beginning.

For an industry already grappling with changing audience patterns and the post-pandemic recovery, this percentage system represents more than just an accounting change: it's about survival and adaptation in a rapidly evolving entertainment landscape.