The Telangana film industry is witnessing a fresh crisis as theatre owners (exhibitors) and producers remain locked in a dispute over the revenue-sharing model, with exhibitors demanding a shift from the traditional rental system to a percentage-based structure. The issue has intensified ahead of major releases, raising uncertainty in the exhibition sector.
At an emergency meeting held on Saturday at the Telugu Film Chamber of Commerce, Telangana exhibitors announced that they would discontinue the rental model and operate theatres exclusively on a percentage-sharing basis. They further stated that the new system would be implemented starting with the upcoming big-budget film *Peddi*, starring Ram Charan, directed by Buchi Babu Sana, scheduled for release on June 4. Exhibitors also made it clear that theatre allotments will be confirmed only if producers formally agree to the revised revenue-sharing terms.
Telangana Film Chamber Secretary Sridhar and Exhibitors Association President Vijayender Reddy stated that the issue had been raised earlier during the release of *Hari Hara Veera Mallu*, but no concrete resolution was reached despite assurances from the chamber. Exhibitors accused producers of delaying the implementation of reforms and expressed dissatisfaction with the current functioning of the Film Chamber, alleging that exhibitor concerns were being overlooked.
The exhibitors highlighted that more than 120 single-screen theatre owners in Telangana are currently facing financial distress due to declining revenues. They argued that while exhibitors struggle to sustain operations, producers benefit from multiple income streams including theatrical collections, digital rights, satellite rights, OTT, and audio rights. They also demanded that theatre classification should be based on box office performance rather than infrastructure parameters such as sound systems or air-conditioning facilities.
Reiterating their position, exhibitors clarified that their demand is not targeted at any specific film, including *Peddi*, but is aimed at industry-wide reform. They also stated that they are prepared to seek intervention from megastar Chiranjeevi if required to resolve the impasse. Meanwhile, they urged the Telangana government, including Chief Minister Revanth Reddy, to avoid any increase in ticket prices and warned of further action if their demands remain unaddressed, as leadership changes within the Film Chamber add further complexity to the ongoing dispute.