Single-screen theatres seek fairer revenue model

hema singuluri | Hyderabad

Single-screen theatre owners in the Telugu states have intensified their demand for a shift from the current fixed rent system to a percentage-based revenue-sharing model, saying the existing arrangement is causing severe financial strain.

Exhibitors argue that fixed rental agreements force theatres to pay high amounts to distributors regardless of box office performance, making it difficult to survive when films underperform. They believe a revenue-sharing system, where earnings are divided based on ticket sales, is more practical and already widely followed across India.

May 1 has become a key date in the dispute. However, industry representatives clarified that no complete shutdown is planned. Instead, if talks fail, single-screen theatres may reduce the percentage of revenue shared with distributors. Reports suggest nearly 250 exhibitors are supporting the move. The Telangana Controllers and Exhibitors Association has confirmed that discussions are ongoing.

Industry leaders point out that the Telugu states have a high number of cinema screens, which has lowered per-screen earnings and worsened the burden of fixed rent agreements. Telangana Film Exhibitors Association Chairman Vijayender Reddy said, “A fair percentage-based agreement is the need of the hour, ensuring theatres survive while distributors also receive their rightful share.”

Creative professionals have also backed the proposal. Director and content creator Kushal said single screens are vital, especially in smaller towns, as they strengthen audience connection and word-of-mouth. He stressed that while theatres need relief, distributors should also be protected through a balanced revenue-sharing framework.