The need to switch theaters from the present fixed rental arrangement to a percentage-based revenue-sharing model, akin to multiplexes, is now the hottest topic in the telugu cinema business.  Since the percentage basis is not feasible for big-budget film makers, not all exhibitors support it.  Their argument is somewhat accurate.  However, who is advocating for this change?  Furthermore, who is against it? 

What's the Demand?
Some organizations contend that theaters are having trouble making ends meet and that a percentage-based rental system should be implemented in place of the current fixed lease rental structure.  There have been less star-driven films released in the last two years.  Revenue from big films typically lasts 4–8 weeks, but depending on word-of-mouth, it may last up to 10 weeks.  This will enable the theater industry to make enough money and endure the dreary season.  Because our stars are picky and only work on one movie every two years, this hasn't happened very often throughout the years. 

Example
A recent big-hero film at Hyderabad's Sriramulu Theatre made Rs 48 lakhs (Nett) in its first week of release. The screen's weekly fixed rent is Rs 6 lakhs.  The producer and distributor split the remaining Rs 42 lakhs.  Now, if this were to be computed using a percentage basis, the theaters would receive a quarter of the money, or Rs 12 lakhs every week.  The producer and distributor would receive the remaining Rs 36 lakhs. 

Real logic behind this?
Since theaters need higher profits to stay in business, the proposal seems reasonable.  Why don't single-screen theaters receive a share-based agreement if multiplexes do? 

But here's the catch
The additional funds flow straight to the lease holders' pockets rather than the actual theater owners.  because a few well-known companies hold long-term leases (20–30 years) on large theater chains.  At the moment, no legitimate theater owners are opposing a percentage system.  The distributors or lease holders that own theaters are the only ones who brought up this issue.

Who’s on which side?

Demanding the percentage model (the leaseholders who benefit from this change:

Suresh Babu
Dil Raju
Sirish
Asian Films

Opposing the change and wanting to keep the current rental system (producers who are in active film production :

Ravi from Mythri movie Makers
Naga Vamsi (Sithara Entertainments)
Supriya (Annapurna Studios)
Swapna Dutt (Vyjayanthi Movies)
Sahu Garapati (producer of Chiranjeevi’s film)
Cherukuri Sudhakar (Paradise Productions)
Ram Achanta and Gopi Achanta (14 Reels Plus)

What about Allu Aravind?

Reports suggest that allu aravind has chosen to stay neutral and hasn’t aligned himself with either side.

The Theatre Shutdown demand:
Beginning on june 1st, the lease mafia demanded that the theater be shut down.  However, pawan kalyan and other prominent producers fiercely opposed it.  The theater lease group was forced to step aside, at least temporarily, as a result of this opposition.  The theater strike is not being discussed since the ap government has responded strongly.  Even those who started the demonstration a day before the official announcement was made were tipped for this.  Thus, a news conference was held on saturday and a meeting of the Joint Action Committee was scheduled. 

Those who initiated this conversation are now keeping quiet because they need to stay in business, even if all active producers are against the percentage basis.  Meetings on theater strikes would not be possible going forward due to Pawan Kalyan's forceful statement.  
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G GOWTHAM

25/05/2025 11:41 AM