The ongoing dispute between distributors and exhibitors in Telangana over the rental system versus revenue-sharing model has intensified, with the upcoming film Peddi emerging as a crucial test case.
A few days ago, Kethireddy Sasidhar of Mythri Movie Distributors LLP issued a statement addressing the non-allotment of theatres for their recent release Jetlee, which hit screens on May 1. He acknowledged the disagreement with certain single-screen theatres in Telangana over weekly rental and revenue-sharing terms. Respecting the exhibitors’ stance, Mythri refrained from screening their film in those single screens until the issue was resolved.
However, Sasidhar expressed concern that Jetlee was also withheld from multiplexes operated by the same exhibitors, despite there being no dispute regarding multiplex agreements, which he emphasized are entirely separate.
At the core of the issue is the demand from single-screen exhibitors to shift from a fixed rental model to a revenue-sharing system, similar to multiplexes. Currently, multiplexes follow a roughly 50–50 revenue split between exhibitors and distributors or producers.
According to Vijayender Reddy, president of the Telangana Controllers and Exhibitors Association, nearly 300 single-screen theatres in Telangana are pushing for this transition. “We have nothing to do with a particular film, big or small. Declining footfalls and rising ticket prices have pushed standalone theatres to the brink. We need a revenue-sharing model to survive,” he said.
He added that exhibitors are willing to consider a 60–40 sharing ratio in the first week for major releases and are open to negotiating percentages, but are firmly opposed to continuing the rental system.
Meanwhile, industry sources suggest that if leading distributors and producers such as Suresh Babu, Allu Aravind, Suniel Narang and Sirish Reddy, continue to support the revenue-sharing model, more producers may be compelled to follow suit. Even strong banners like Mythri Movie Makers, despite having their own distribution network and theatres, depend on wider exhibitor support for large-scale releases.
In this backdrop, Peddi, slated for release on June 4, is expected to play a pivotal role in determining the way forward. The film could effectively test whether a middle ground can be reached between the two sides.
To resolve the impasse, a meeting involving producers, distributors, and exhibitors is likely to be held on May 8 or May 12. “We have a meeting scheduled soon,” confirmed Vijayender Reddy.
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