Theaters In AP Getting Ready To Shut Down

Just as everyone thought the government of Andhra Pradesh put an end to abnormally low cinema ticket prices saga, it has come up with something that is troubling the film exhibitors in the state. The government is saying it will credit all the theatrical revenues directly into its bank account and then deposit it in the accounts of exhibitors post service charge deductions.

However, the exhibitors aren’t in approval of the MOUs sent by the government. They say it is unfair for the government to take the theatrical revenues to their account.

Exhibitors are now saying they are even ready to shut down cinema theaters if the government doesn’t modify the set of.

The government has given till the end of this month for exhibitors to sign the MOUs and is threatening to cancel the licenses if they fail to do the same. Exhibitors have stated that they are ready to shut down theaters if the government pressurises them into signing these unclear MOUs.

“Online ticketing portals like Book My Show and Paytm Movies have paid us huge advances for film exhibition. It is against their rules to let third party interfere with the financial transactions. Now, the government says it will take all the money into their accounts. This will revoke the contracts with the portals and they will ask us to return the advances. How can we arrange the money all of a sudden?” Exhibitors state.

As it appears, things are back to square one as theaters in AP are getting ready to shut operations due to the undue pressure applied by the state government.