In a significant move that could disrupt the Telugu film industry, theater exhibitors from Telangana and Andhra Pradesh have decided to shut down cinema theaters starting June 1. The decision was taken during a crucial meeting held at the Telugu Film Chamber in Hyderabad.
The meeting was attended by around 60 key exhibitors, along with prominent film producers Dil Raju and Suresh Babu. The exhibitors collectively resolved that they would no longer screen films under the existing rental model, which they claim is financially unsustainable.
Instead, the exhibitors are demanding a percentage-based revenue sharing model, where payments will be made based on a share of box office collections rather than a fixed rental amount. A letter will soon be submitted to producers and film associations, officially stating the exhibitors’ decision.
“We have made it clear—no more rentals. We’ll only run films if revenue is shared in percentages,” said one of the exhibitors after the meeting.
This move is expected to impact upcoming film releases, as the industry enters a crucial phase with multiple big-budget films lined up for summer. If not resolved soon, the standoff may lead to financial losses for both producers and theater owners.
The Telugu film industry now awaits a response from producers and distributors, as talks continue in hopes of finding a middle ground.
