The ongoing tussle between exhibitors and leading Telugu producers has now escalated into a major confrontation, with exhibitors issuing a strong “percentage or nothing” ultimatum.
The stand could directly impact the release of Ram Charan’s upcoming film Peddi.
Leading distributor and exhibitor Sirish Reddy, brother of producer Dil Raju, said at a press meet that nearly 100 theatres have shut down since the release of RRR due to mounting losses in the exhibition sector.
“The exhibition business has gone from bad to worse. Producers don’t understand the plight of exhibitors, while we are seeing the crisis firsthand. The situation is extremely bleak,” Sirish Reddy said.
He pointed out that big-budget Telugu films have now become pan-India projects, releasing simultaneously in Maharashtra, Delhi, Tamil Nadu and Bengaluru.
“Telugu producers are following the percentage-sharing model in other states, but they are refusing to implement the same system in Andhra Pradesh and Telangana. That is completely unfair,” he said.
According to exhibitors, the percentage-sharing system is already followed in most parts of India but continues to be ignored in the Telugu states.
They are now demanding an immediate shift from the traditional rental-based model to a revenue-sharing format — 60% share for exhibitors in the first week, 50% in the second week and 40% thereafter.
Sirish Reddy said the theatrical experience cannot be replaced.
“Fan celebrations like cut-outs, milk abhishekams and dances are possible only in theatres. Re-releases are drawing crowds even when those films are already available on television and OTT because watching films in theatres remains special and memorable,” he said.
The exhibitors’ meeting, attended by around 40 members, reportedly received support from influential industry figures, including Suniel Narang, Dil Raju and representatives of Suresh Productions. This has strengthened the exhibitors’ stand in Telangana.
However, Mythri Movie Makers has emerged as the strongest opponent of the proposed system.
The production house is preparing to release Peddi worldwide on June 4, but exhibitors have warned that unresolved revenue disputes could create hurdles for the film’s release in Telangana, which has over 400 theatres.
The conflict had already intensified earlier this month when Mythri’s release Jetlee allegedly faced a virtual ban on its opening day, after exhibitors reportedly refused to screen the film amid the ongoing dispute.
Mythri Movie Makers later condemned what it called “unfair tactics,” alleging that certain exhibitors had even pressured multiplexes by withholding films over single-screen terms.
Since Mythri is also producing and distributing Peddi, exhibitors have indicated that the same unresolved issues could affect the Ram Charan-starrer as well.
Leading exhibitor Suniel Narang said the issue had reached a critical stage.
“This is a very serious issue. Producers say they will implement the percentage system, but they never do. Producers are also facing losses, and everyone says the situation is difficult. Multiplexes are introducing new technologies and modern facilities, but single-screen theatres are unable to afford such upgrades. If theatres are equipped with modern facilities like Dolby, audiences will definitely return to single screens as well,” he said.
Narang added that the closure of single-screen theatres would eventually hurt producers and distributors too.
“We are not targeting any particular film. We have been bringing this issue to the notice of producers for many years. They continue to make promises, but they are not being implemented. That is why we organised this meeting. We also seek the support of the media in our efforts to save single-screen theatres,” he said.
With Peddi getting ready for a major release, the exhibitors’ ultimatum has added fresh tension to Tollywood’s trade circles.
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