Theater Shutdown Looms Over Telugu States Starting June 1

A significant development has emerged in the Telugu film industry as theater exhibitors in Andhra Pradesh and Telangana have unanimously resolved to shut down cinemas indefinitely starting June 1. The exhibitors stated that operating theaters under the current rental model has become unviable, and they will only continue if a revenue-sharing percentage model is implemented instead.

On Sunday, representatives of theater exhibitors from both states convened at the Telugu Film Chamber of Commerce office in Hyderabad. Prominent producers Dil Raju and D. Suresh Babu also attended the meeting. According to reports, exhibitors explained their financial hardships and operational challenges to the producers during this gathering.

Exhibitors expressed concern that the rising costs of theater operations, coupled with the existing rental system, are causing substantial losses. “We can no longer run theaters on a rental basis. We need a share in the revenue through a percentage system. Only then will operations be financially sustainable,” they reportedly stated.

The meeting also concluded with a decision to formally communicate their demands and resolution to the producers through an official letter.

If implemented, this decision could significantly impact the release of several films scheduled from June 1. Industry insiders are particularly worried about the difficulties that small and medium-budget films might face. The exhibitors' resolution has triggered a fresh round of discussions within the Telugu film industry. Observers now await to see what resolution might be jointly reached by the producers and exhibitors to address this issue.