The Telangana government has issued key orders regarding the recent hike in movie ticket prices. These orders brought clarity on how the additional revenue generated through the increased ticket rates should be shared with the welfare fund of Telugu film industry employees.
According to the government’s latest directions, 20 percent of the additional revenue generated through the ticket price hike must be paid as a welfare contribution to the Telangana Film Development Corporation (TGFDC). The amount will be deposited into an account managed through the TGFDC for the welfare of employees working in the Telugu film industry.
The government has also made it clear that the responsibility of collecting this 20% share from exhibitors will lie with the respective producers. In other words, producers have been authorized to collect the applicable welfare contribution from exhibitors on the additional revenue earned through the increased ticket prices.
The new directions will apply to Akhanda 2, The Raja Saab, Mana Shankara Vara Prasad Garu and Peddi, which were released ealier. The government has issued letters to the respective production houses, including 14 Reels Plus LLP, People Media Factory, Shine Screens India LLP and Vriddhi Cinemas LLP, authorizing them to collect and deposit the 20% welfare contribution.
The latest order provides much-needed clarity on the mechanism for diverting a portion of the additional revenue generated from ticket price hikes towards the welfare fund. Producers will now have to take the necessary steps to collect the amount from exhibitors and ensure that it is deposited into the designated welfare account through the TGFDC.
With several big-ticket releases receiving permission for increased ticket prices in Telangana, the government’s latest directive establishes a clear framework for handling the additional revenue. The move also ensures that a portion of the benefit generated through the ticket hikes reaches the welfare fund meant for Telugu film industry employees.
