In a significant development aimed at resolving the persistent disputes plaguing the Telugu film exhibition sector, the Telugu Film Chamber of Commerce (TFCC) is reportedly considering the formation of a 27-member panel. This proposed “jumbo committee” would comprise nine representatives each from the producers, distributors, and exhibitors, signaling a concerted effort to foster dialogue and find common ground within Tollywood’s various stakeholders.
The move comes amidst escalating tensions, particularly concerning the long-standing demand by exhibitors to shift from the current fixed rental model to a percentage-based revenue-sharing system. Exhibitors argue that the existing rental model is no longer sustainable, especially with declining footfalls in single-screen theatres and the rising operational costs. They contend that under the current system, they bear the brunt of financial losses when films underperform, while producers and distributors often secure their earnings regardless of box office success.
Sources close to the TFCC indicate that a special executive committee meeting was recently held where the decision to establish this high-level panel was made. The Producers’ Council is expected to submit its list of nine members soon, paving the way for a series of meetings designed to be cordial and constructive. The ultimate goal for this panel is to work within a defined timeframe to draft a roadmap and arrive at an amicable solution that addresses the grievances of all parties.
However, the path to resolution is not without its challenges. A key point of contention lies in the sharing of box office revenues, particularly from high-grossing films. While exhibitors are seeking a share from these blockbusters, which collectively earn hundreds of crores annually, some top producers are hesitant. They argue that profits are primarily generated from a limited number of big-ticket films each year, and sharing revenue from these vital projects could jeopardize their financial viability and sustainability.
Despite this divergence of interests, there appears to be a growing acknowledgment among some producers that a “percentage system” could be beneficial for the industry’s long-term health. However, a reluctance to formalize these ideas in writing has reportedly stalled progress. The proposed 27-member panel’s primary task will be to navigate these complex negotiations and explore viable alternatives to the current rental-based model that exhibitors have been actively pushing to abolish in both Andhra Pradesh and Telangana.
The recent threats of a theatre shutdown from June 1st, although temporarily suspended, underscore the urgency of the situation. The exhibition sector has been vocal about its financial struggles, with many single-screen theatres facing closures due to the unviability of the current system. The intervention of the TFCC with such a comprehensive panel suggests a recognition of the severity of the crisis and a commitment to preventing further disruptions to the Telugu film industry.
The effectiveness of this 27-member panel will be closely watched by all stakeholders. Its ability to mediate between the conflicting demands of producers, distributors, and exhibitors, and to forge a mutually beneficial agreement, will determine the future stability and growth of Tollywood’s theatrical exhibition landscape. The industry is hopeful that these discussions will lead to a sustainable revenue-sharing model that safeguards the interests of all involved and ensures the continued vibrancy of Telugu cinema.