Telangana State Film Chamber of Commerce passed a resolution that will significantly affect movie distribution. Under the new system, exhibitors will operate on a percentage basis, effective from July 1, 2024.
Nizam has completely transitioned to this percentage system, and it’s only a matter of time before it is implemented in Andhra.
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This change could benefit films ranging from average to hits, but it could pose a challenge for superhit to blockbuster movies. However, it is generally seen as a positive change for exhibitors.
According to Sateesh Botta, Executive Producer, producers must now carefully consider any ticket price increases since 25% of the increased price will go to the exhibitors.
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For instance, with a ticket price of 145 INR per show and a theater net income of 1 lakh INR, 25,000 INR would go to the exhibitor and 75,000 INR to the distributor. If the ticket price is raised to 200 INR and the per show net becomes 2 lakh INR, the distributor would receive only 1.5 lakh INR, coupled with the risk of reduced occupancy due to the higher ticket price.
Below is the new percentage system for Nizam rights:
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For revenues 30Cr and above:
Week 1: 75% Distributor, 25% Exhibitor
Week 2: 55% Distributor, 45% Exhibitor
Week 3: 40% Distributor, 60% Exhibitor
Week 4: 30% Distributor, 70% Exhibitor
For revenues between 10Cr and 30Cr:
Week 1: 60% Distributor, 40% Exhibitor
Week 2: 50% Distributor, 50% Exhibitor
Week 3: 40% Distributor, 60% Exhibitor
Week 4: 30% Distributor, 70% Exhibitor
For revenues 10Cr and below:
Week 1: 50% Distributor, 50% Exhibitor
Week 2: 40% Distributor, 60% Exhibitor
Week 3: 30% Distributor, 70% Exhibitor
