Tollywood exhibitors from two Telugu states took a key decision on Sunday. They made it clear that they will no longer be able to screen movies on a rental basis and will continue to screen only if they pay a percentage. In this order, it was decided to close theaters from June 1.
Producers Dil Raju and Suresh Babu, along with 60 exhibitors, attended the meeting held at the Telugu Film Chamber on Sunday. There has been a discussion between exhibitors and distributors on percentages for some time. While exhibitors say that it is not possible to screen movies on a rental basis, distributors say that they cannot be given percentages. This issue is becoming a problem for producers.
In this context, it was decided to discuss the percentage and government policies in the meeting held and write a letter to the producers to this effect. Presently, this issue has become a hot topic of discussion in Tollywood. This is likely to affect the upcoming films.
Earlier, Telangana exhibitors decided to divide the percentage system into three parts. For big and medium films, it was decided to take 2 percent negotiation, that is, 73 percent distributor and 27 percent exhibitor.
For films with Nizam rights of Rs. 30 crores+, the first week will be 75 percent distributor, 25 percent exhibitor, second week 55 percent distributor, 45 percent exhibitor, third week 40 percent distributor, 60 percent exhibitor, fourth week 30 percent distributor, 70 percent exhibitor.
For films Rs. 10 crore to Rs. 30 crore, Nizam rights the first week was 60 percent distributor, 40 percent exhibitor, second week 50 percent distributor, 50 percent exhibitor, third week 40 percent distributor, 60 percent exhibitor, fourth week 30 percent distributor, 70 percent exhibitor.
For films with below Rs 10 crore, Nizam rights- the first week was 50 percent distributor, 50 percent exhibitor, second week 40 percent distributor, 60 percent exhibitor, third week 30 percent distributor, 70 percent exhibitor.
