Debate Continues on Rental vs Percentage Model

A major rift has emerged within the Active Telugu Film Producers Guild over the implementation of the percentage system in theatres. The guild, which was formed under the leadership of Dil Raju, is witnessing its first internal split. A section of theatres in the Nizam region has announced that they will switch to the percentage system from the 30th of this month. Opposing this move, sixteen producers have written a letter demanding the continuation of the existing rental system and proposed negotiations with exhibitors. Notably, key names like Dil Raju and Suniel Narang were absent from the letter.

Producers fear that the new system may reduce their share of revenues, while supporters argue that theatres cannot survive under the current rental model. Allu Aravind is also believed to be in favor of the percentage system. With big production houses opposing the move, concerns are rising that the already struggling film industry could face further challenges. This marks the first major division within the guild, highlighting growing tensions between producers and exhibitors.