The ongoing dispute between Telugu film producers and single-screen theatre owners has now entered a crucial stage, creating fresh tension inside the industry. Differences over the proposed “percentage system,” a revenue-sharing model based on box office collections, have intensified over the past few weeks, pushing the issue to a point where industry veterans are stepping in to find a solution.
Now, Megastar Chiranjeevi’s involvement has become the biggest talking point.
According to industry reports, representatives from the Telangana Exhibitors Association are expected to meet Chiranjeevi at his residence to discuss the issue. The meeting has generated massive interest within Tollywood, as many believe its outcome could significantly influence the future relationship between producers and theatre owners.
At the center of the conflict lies the long-standing rental model followed by single-screen theatres.
Currently, multiplex chains largely operate under a percentage-sharing model where exhibitors and distributors divide collections based on revenue performance. However, most single-screen theatres continue operating under fixed rental agreements. Telangana exhibitors argue that the old system no longer works under current market conditions.
Exhibitors point toward rising operational expenses, increasing electricity charges, maintenance costs, and growing pressure from OTT platforms as major reasons behind their demand.
Theatre owners argue that whether a film becomes a blockbuster or ends up underperforming, they still bear fixed rental burdens that create financial stress. They believe adopting revenue sharing similar to other regions would provide long-term sustainability.
The controversy has gained further attention because it directly overlaps with Chiranjeevi’s son Ram Charan’s upcoming big-budget film Peddi, directed by Buchi Babu Sana and scheduled for a worldwide release on June 4.
Reports suggest Telangana exhibitors want the percentage-sharing system implemented starting with Peddi itself. Industry discussions indicate exhibitors have strongly pushed this demand and reportedly signaled they could take decisions regarding screening operations if the issue remains unresolved.
Ticket pricing has become another sensitive point.
Exhibitors argue that theatre footfalls are already under pressure. According to them, additional ticket price hikes could further discourage regular audiences from returning to cinemas.
Chiranjeevi’s entry into the matter has naturally increased attention because he has historically played an active role whenever major industry challenges emerged. This time, the situation carries added importance because it involves both larger industry concerns and the release of Ram Charan’s highly anticipated film.
With Peddi release preparations entering the final phase and tensions between producers and exhibitors continuing to rise, all eyes are now on whether Chiranjeevi’s intervention can help bring both sides to common ground before the situation escalates further.
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