Tension between exhibitors and producers over the percentage model

Tensions have escalated in Telangana’s theatre industry as differences emerge between exhibitors and producers over the implementation of the percentage model. Under this system, revenue from ticket collections is shared between theatre owners and producers based on a fixed percentage. Exhibitors believe that this model could ensure more stable and predictable income compared to the existing rental or fixed model.

However, the Active Producers Guild has opposed the move, arguing that the percentage system may reduce their profits, especially for big budget films. With no resolution in sight, uncertainty continues in the industry. Upcoming releases like Dacoit and Love Insurance Kompany could be affected, with possible delays or postponements if the dispute remains unresolved.