Exhibitors who operate single-screen theatres in AP and Telangana are in a protest mood and are clashing with Telugu film producers and distributors. There are more than 1500 such theatres in both states, while scores of others are multiplex. Over the last two decades, several small theatres have transitioned into the multiplex model or shut shop. The exhibitors are now in arms, demanding a change in revenue model as they feel they face an existential threat.
Currently, the revenue arrangement between single-screen theatres and the multiplex differs. While the former is paid a fixed rent for allowing screening for a particular duration, the latter takes a percentage of ticket collections. The exhibitors demand the same revenue-sharing model be extended to them. Recently, a meeting was held between exhibitors where this particular demand was voiced. Many exhibitors want distributors and producers to accept their requests and have started negotiating with them. However, a few industry insiders feel this is a temporary solution that may not fetch in the long run.
“If this model is implemented for single screens, small movies would get killed. The exhibitors have come up with this demand because there are no big-ticket movies now, and whenever a star movie releases, it will help them get a good chunk of revenue from the collection. The star movies get a good number of shows and also good collections. For smaller movies, this model may not work well as they do not see such great collections. There is a chance that single-crew theatres will treat small and big movies differently and opt for star-driven films, thereby pushing low-budget movies to a disadvantage. Single screen will no more be a level-playing field,” said a source in the Telugu film industry.
The exhibitors are also upset that the runtime of new movies in theatres is shortening to make way for OTT releases. They are also opposing this practice and want a discussion around it. A section of exhibitors in AP called for a shutdown of theatres in protest from June 1 in case the issue isn't resolved. Other theatre owners may follow suit in the coming days. If the demands are not met, the movies that could affected include actor and Deputy CM Pawan Kalyan’s upcoming Hari Hara Veera Vallu, which will hit the screens in the second week of June.
