It is known to our readers that Exhibitors have announced to shutdown the theaters from June 1st if the Percentage System is not implemented.
The Exhibitors already gave a representation to the Chamber and it is forwarded to the Producers Council. The Council is likely to have a meeting tomorrow and a Joint Meeting is being planned on 21st.
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It is unlikely that a consensus will be reached at this meeting and the big question is if the theaters will shutdown from June 1st.
In June, we have Bhairavam (Day 2), Thug Life, Hari Hara Veeramallu, Kubera, and Kannappa planned for release. There are packed releases as well in July and August.
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That means there is a good chance that the theaters will have good feeding these three months. It makes no sense to shut down the theaters for the Exhibitors.
At the same time, if the theaters are closed, the producers will suffer severe losses on Interest Costs on Finished Products.
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So, a Shutdown makes no sense at all.
If at all, a Bandh happens, the winner will be decided on who will hold it well.
Producers definitely have deep pockets but at the same time, he is also not in a better position now because of mounting losses.
In Nizam, there are only two players now. Mythri is opposing the Bandh. Sirish – Suniel Narang – Suresh Babu have become one entity. They are in strong support for the Percentage System. So implementing the Bandh is relatively easy here.
But in Andhra, there are numerous exhibitors and lessees. Everyone have their own problems. So, it is not easy to achieve the Unity.
Independent theaters like Sudarshan, Devi are doing good with Rentals. It will be a huge loss for them if the theaters are Shutdown.
Some of the films lined for the next three months are the big ones. It has to be seen if they will dare to release them in Multiplexes and the non-participating Single Screen Theaters.
In 2018, Suresh Babu led the Southern Film Industries for a Strike over Exorbitant VPF Charges. While the Telugu Film Industry led the charge, it is also the same industry that blinked first.
To counter the Exhibitors, Producers are bringing the issues of VPF Charges, Share in Theaters Advertising, Share in Book My Show Booking Fees etc to corner them.
So, the question is will the theaters shutdown from June 1st?
The Percentage System which the Exhibitors are demanding is not something very simple. There are various stakeholders like Theater Owners, Lessees, Independent Theater Owners, Distributors, Producers, etc.
As a via-media solution, a committee maybe appointed to put this issue in cold storage for now.
