Will Theatres Shut Down in Telugu States? Film Industry Leaders Weigh In

The Telugu film industry has temporarily averted a proposed shutdown of theatres in Andhra Pradesh and Telangana, initially scheduled for June 1, 2025. This development follows a series of crucial meetings among major distributors, producers, and exhibitors, who have collectively decided to keep theatres operational while addressing pressing issues related to revenue-sharing models.

Background: The Revenue-Sharing Dispute

The core of the conflict lies in the existing rental-based revenue model, where single-screen theatre owners pay a fixed rent to screen films, regardless of box office performance. Exhibitors argue that this system is unsustainable, especially in the face of declining footfalls due to factors like the rise of OTT platforms, piracy, and events like the IPL season. They advocate for a return to the percentage-based revenue-sharing model, which was in practice until 2002, allowing for a fairer distribution of earnings based on ticket sales.

Meetings and Interim Resolution

On May 21, the Telugu Film Chamber convened meetings with approximately 40 distributors in the morning and leading producers in the evening. The consensus was that a theatre shutdown would further harm the industry, particularly with several major film releases on the horizon. Stakeholders agreed to continue operations and seek solutions through dialogue, emphasising the need to avoid disruptions that could alienate audiences and impact revenues.

Upcoming Releases Influence Decision

The decision to postpone the strike was also influenced by the impending release of high-profile films, including Kamal Haasan's "Thug Life" on June 5 and Pawan Kalyan's "Hari Hara Veera Mallu" on June 12. Exhibitors recognised that a shutdown during this period could jeopardise the success of these films and further strain the industry's financial health.

Call for Government Intervention

Dr. Pratani Ramakrishna Goud, Chairman of the Telugu Film Chamber of Commerce, has called upon the governments of Andhra Pradesh and Telangana to intervene and facilitate the reintroduction of the percentage-based revenue model. He asserts that such a system would benefit all parties involved—producers, distributors, and exhibitors—while also encouraging opportunities for smaller producers.

Final Decision Pending

While the immediate threat of a theatre shutdown has been mitigated, the final decision regarding the revenue-sharing model and potential future actions is expected to be announced on May 23. The industry remains hopeful that continued discussions will lead to a sustainable resolution that supports the growth and stability of Telugu cinema.