Andhra Pradesh Tourism and Cinematography Minister Kandula Durgesh directed the Principal Secretary (Home) to investigate the source of the shutdown call.
Published May 24, 2025 | 2:47 PM ⚊ Updated May 24, 2025 | 2:47 PM
The minister's directive came amidst speculation that the shutdown of theatres could disrupt the release of JSP chief and Deputy Chief Minister Pawan Kalyan’s much-anticipated film, 'Hari Hara Veera Mallu: Part I'.
Synopsis: Exhibitors are advocating a shift to a percentage-based revenue-sharing model, similar to that used by multiplexes, where earnings are split based on ticket sales. This approach would allow them to share financial risks with producers and distributors.
The call for the closure of single-screen theatres across Andhra Pradesh and Telangana starting 1 June has added a new layer of complexity to the issues dogging the Telugu film industry, prompting government intervention.
Andhra Pradesh Tourism and Cinematography Minister Kandula Durgesh, a member of the Jana Sena Party (JSP), on Friday, 23 May, directed Principal Secretary for the AP Home Department, Kumar Vishwajeet, to investigate the source of the shutdown call.
The directive came amidst speculation that the shutdown of theatres could disrupt the release of JSP chief and Deputy Chief Minister Pawan Kalyan’s much-anticipated film, Hari Hara Veera Mallu: Part I, scheduled for 12 June.
Durgesh instructed Vishwajeet to probe reports that “four persons” were allegedly pressuring exhibitors to shut down theatres ahead of the film’s release. The minister expressed concerns about a possible “cartel” among distributors and exhibitors making “undesirable” decisions.
He also requested an assessment of the potential revenue loss to the state exchequer if theatres remain closed from 1 June and an evaluation of how many new releases would be affected.
While Durgesh did not directly accuse any political party, the timing of the shutdown threat, its potential impact on Kalyan’s film, and the historical rivalry between JSP and the YSRCP raised suspicions of underlying political tensions.
The minister’s focus on a possible cartel indicates fears of coordinated efforts that could serve political or economic agendas against the ruling coalition.
According to industry sources, the exhibitors’ call for closure, primarily targeting single-screen theatres, primarily stems from their dissatisfaction with the current fixed-rental system for screening films. This model requires exhibitors to pay a fixed fee regardless of a film’s performance, leading to significant financial losses when movies fail to draw audiences.
Rising operational costs, including electricity, maintenance, and staff salaries, have further eroded their already thin profit margins.
Exhibitors are advocating a shift to a percentage-based revenue-sharing model, similar to that used by multiplexes, where earnings are split based on ticket sales. This approach would allow them to share financial risks with producers and distributors.
This apart, exhibitors are frustrated by the shrinking window between theatrical releases and OTT platform premieres, which they claim reduces theatre attendance as audiences opt to wait for digital releases. They are demanding a longer period of theatrical exclusivity.
With approximately 1,500 single-screen theatres in Andhra Pradesh and Telangana bearing the brunt of underperforming films, the issue has reached a critical point. A joint meeting on 18 May at the Telugu Film Chamber of Commerce in Hyderabad, attended by around 60 exhibitors and prominent producers such as Dil Raju and Suresh Babu, made little progress in addressing the exhibitors’ concerns.
The absence of several key distributors and producers at the meeting underscored internal disagreements within the industry over the proposed revenue-sharing model.
Exhibitors are now contemplating urging the governments of Andhra Pradesh and Telangana to intervene in standardising revenue-sharing models or providing subsidies and tax breaks for single-screen theatres. Though the proposed shutdown was temporarily averted following meetings on 22 May, the situation remains uncertain.
The Telugu Film Chamber and industry stakeholders are exploring a compromise, potentially adopting a tiered percentage-based model previously used in Telangana’s Nizam region, to balance the interests of exhibitors, producers, and distributors.
Distributor Bharat Bhushan, President of the Telugu Film Chamber of Commerce, explained the exhibitors’ point of view in a recent statement: “Theatres are struggling with poor patronage and rising costs. Footfalls in theatres have also come down. Some shows had to be cancelled due to very few viewers.”
Producers, represented by figures like Dil Raju and Suresh Babu, have engaged in discussions but reportedly face challenges due to internal disagreements, with some key distributors skipping meetings. The industry remains wary of the shutdown’s potential to disrupt major releases.
As the 1 June deadline approaches, all eyes are on the Telugu film industry to see whether a resolution can be reached to prevent disruptions and ensure the survival of single-screen theatres in the region.
(Edited by Majnu Babu).
