Theatre Shutdown: Telugu cinema industry is on the verge of collapse since theatre owners in Andhra Pradesh and Telangana. They are going to shut shop from June 1. This comes after a row between theatre owners and filmmakers over patterns of revenue-sharing. With the theatre owners demanding a shift from the existing rental system. If not solved, the shutdown would have grave consequences for future movie releases. As well as the state’s cinema industry at large.
Earlier, theatres operated on a rental system where exhibitors paid a fixed amount to screen a film. However, decreasing box office footfalls and increasing overhead costs have made such a system economically unviable for theatre owners. Some now advocate a revenue-participation share-based system such as the multiplex model. In which returns are split by the producers and exhibitors equally in terms of box office collection.
A number of reasons have compelled the exhibitors to adopt a new financial model:
Poor Box Office Sales: The vast majority of performances are attracting fewer than 10 patrons each night, resulting in loss of income.
Gigantic Overhead Expenses: Electricity bill, repair bill, and employee pay are mounting, forcing theaters to struggle to remain afloat in the existing model.
Financial Risks: The prepayment rent structure obliges exhibitors to pay regardless of the box office performance of the film, also requiring pressure on theatre owners.
The complaints of the exhibitors have been received by the Telugu Film Chamber of Commerce, and talks with the producers are scheduled in the coming days. But if the agreement does not work, dozens of theatres in Andhra Pradesh and Telangana would shut down, damaging the releases of highly anticipated films like Hari Hara Veera Mallu, War 2, and Coolie.
Also Read: Top 10 Richest People In Telugu States in 2025
The shut-down of the theatre brings the exhibitor’s financial crisis. And the requirement for a rational revenue-sharing agreement in sharp focus. On no terms, the Telugu film industry can look forward to wholesale disruptions impacting producers and audiences alike. The coming weeks will determine whether an agreement can be hammered out or whether the industry can witness a temporary exhibition lockout of theatres.
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